The stock market crashed in October of 1929. Also known as ‘Black Tuesday’ this crashed deleted the value of all paper stocks. A lot of people lost their life savings and unemployment rose to a rate of 25%. Although The Depression happened here in the United States, many counties world-wide were affected as they relied heavenly on companies that exported their goods from America. Inevitably business began to become greatly affected by the Great Depression.
In other words Hoover was for the wealthy and not the middle-class Americans. In stead of improving the economy he made it worse. The working American paid taxes; therefore, they have a right to receive unemployment benefits. So people had to suffer more lost due to Hoover not giving them unemployment paid. This man destroyed families and lives.
This left America income free in their time of economic downfall. Weather this can be seen as one of hoovers failings is controversial. It was evident that Germany was finding it close to impossible to come up with the money to pay their war depts. However it meant a loss of income to America in their time of desperation. While hoover eventually made effects to reprieve the economy most were seen as counteractive as they avoided the main issue which was the suffrage of the unemployed and homeless and instead invested time and money in the recovery of businesses which deemed unsuccessful.
The banks were directly affected by the economic collapse, causing many to shut down. The Depression was said to have ended in the 1930’s if it weren’t for the collapse of the international economic system as well (Who Built America? 39... ... middle of paper ... ...RL, Third Pic down) you can see a picture of “migrant workers” standing next to a sign of their community, which they live and work in. This shows how even the youngest children were given work during this crisis. The Great Depression like the Drought hit America really hard.
The same uncontrolled and market that resulted in the destitution of the 1930’s still caused the economy at large to claps for families to loose there savings, houses, and jobs. President Roosevelt took one of the great dissensions of the depression era when he announce the Emergency Banking Act and the Glass-Steagall Act which banded the involvement of banks in the stoke market (foner, 800). By taking such action Government was able to stabilize the financial system. But today politicians choose to ignore this great historic lesson that could have saved us from the national disaster that is still affecting many households. If they still are refusing to put a tougher control measure in place to control the banking system, we could end up in a worst situation than even what we have seen in 2008.
The Stock Market crash caused the Great Depression by making investors and companies losing majority of their money. The stock market crash happened on October 29, 1929 and was caused by the trading and selling of 12.9 million stocks. The Great Depression lasted from 1929 to 1939 and was the worst economic crisis which caused many people to become unemployed, businesses, and banks started to close and fail. Also the depression challenged American people and families by putting them in economic and social issues. Millions of people and families lost their savings and many banks which failed in the duration of the
Because of president hoover's wide unpopularity, people began calling homeless tent camps “Hoovervilles” and an... ... middle of paper ... ...k in full production. This expanding industrial production reduced the unemployment rate to below its pre-Depression level, finally and officially ending the Great depression. The Great Depression and the New Deals forever changed the relationship not only between Americans and their government, but as well as many other countries that suffered from the depression. Government involvement and responsibility in taking care for the poor and regulating the economy became expected by the citizens. Its possible that the Great depression could happen again, but very unlikely now that there are regulations on the stock market to assure we wouldn't suffer like in 1929.
Americans joined together to form unemployed councils, sponsoring marches for public assistance, and protesting the eviction of unemployed families from their homes. President Hoover’s response to the great depression, in the eyes of many Americans, was inadequate and uncaring. In the 1930’s, the administration remedies, like the Hawley-Smoot Tariff, made the economic situation worse. The SA tax increase that President Hoover also pushed through Congress further reduced Americans’ purchasing power. By 1932, Hoover had to admit the voluntary action had failed to stem the depression.
But when banks started to crash that is when people started to panic and was trying to get their money back, millions of Americans lost fortunes. This caused companies to lose their values and no longer be able to afford to stay in business. William C. Durant joined the Rockefeller family and other financial giants to buy big stocks to prove to the people their assurance in the market but they failed to stop decline in prices. According to the website Globalyceum, US gross domestic product, in 1929 $103.6 billion, in 1930 $91.2, in 1931 $76.5, in 1932 $58.7, in 1933 $56.4. The total size of the American economy, restrained by gross local product, suddenly dropped following the crash on Wall Street from $103.6 billion to $66
Taking office the same year as the Great Depression, Americas thirty first president, Herbert Hoover greatly impacted the lives of many Americans. It has been stated that the stalk market crash was to blame for the greatest economic downturn in American; however, Ex-President Hoover made critical mistakes during the depression that he would be blamed for the rest of his life. The Great Depression began in 1929, 7 months after the Ex-President’s election. (Insert cite) Instead of “using the power of the federal government to squarely address it” (I C), Hoover vetoed many bills that would help the situation, believing in volunteer help. Hoover soon became hated and thought of as heartless.