The Great Depression

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In the late 1920s, the United States was said to have one of the most prestigious economies in the world. Herbert Hoover reigned as president, and was assured that the American economy would continue to prosper, and eventually obliterate poverty in the U.S. However, the stock market crash in 1929 forever changed Hoover’s plans. 1929 to 1939 was one of the most devastating decades in American history. This time period, known as The Great Depression, was a 10-year national crisis that led the country to economic depression and mass unemployment (The Great Depression). “It ranked as the worst and longest period of high unemployment and low business activity in the 1900s” (Mitchener). Many factors led the United States into its longest financial despair. World War I caused a devastating economic slump throughout Europe. Many countries resorted to postwar inflation to help defray the debt caused by the war. The total cost of the war summed to approximately $337 billion. Nations sought money through increased taxes and borrowing, which led to a substantial amount of debt for the countries who engaged in the war (Mitchener). The aftermath of World War I is one of many factors believed to lead the United States into The Great Depression. The stock market crash of 1929 is said to be one of the main causes that led the United States into its deepest financial depression. With the stock market crashed, by 1933 banks began to fail, and could no longer support the citizens. This unfortunate incident left many without savings, and unemployed. With the depression came the drought. During the drought, the price of crops and farmland plummeted, making it difficult for farmers to make ends meet. All three of these instances played a crucial role...

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...increased the money supply, and helped the banking system recover,” (Mitchener), which substantially improved the United States economy and the perseverance of the recovery. Despite the numerous positive adjustments to the country’s economy, the unemployment rate was still at the averaged of 14.6 percent in 1940, (Smiley). World War II brought a significant change to the unemployment numbers. The need for soldiers and war materials created tons of jobs for the U.S. citizens. In 1944, the rate of unemployment in the United States had fell to a grand number of 1 percent, (Mitchener).
The Great Depression was the worst financial decade that the United States economy had ever encountered. The stock market crashed, banks failed, and drought swept across the plains. But at the end, the American economy was able to recover and still continues to be a successful nation.

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