A Response to the Great Depression

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A Response to the Great Depression

The Great Depression of the 1930s was the economic event of the 20th century. The Great Depression began in 1929 when the entire world suffered an enormous drop in output and an unprecedented rise in unemployment. World economic output continued to decline until 1932 when it clinked bottom at 50% of its 1929 level. Unemployment soared, in the United States it peaked at 24.9% in 1933. Real economic output (real GDP) fell by 29% from 1929 to 1933 and the US stock market lost 89.5% of its value. Another unusual aspect of the Great Depression was deflation. Prices fell 25%, 30%, 30%, and 40% in the UK, Germany, the US, and France respectively from 1929 to 1933. These were the four largest economies in the world at that time.

In the United States the Great Depression brought forth many problems. There was both a physical and psychological impact on the entire nation. Many feared losing their jobs and the high rate of unemployment cause much anxiety. People were becoming depressed and the numbers of attempted and/or committed suicides were increasing. The impact on the nations health was also an issue. Thousands of people were going hungry, causing people to grow their own food and eat wild berries and other plants. Children were suffering from poor diets and inadequate medical attention, which lead to many other health problems. Living conditions changed when multiple families began crowding into small houses and apartments in at...

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