A banking crisis then swept across America, as the confidence of the American public fell. In 1929, 659 banks failed due to unpaid loans. As a result people stopped trusting banks and withdrew their savings. This in turn led to more banks failing. People in agriculture were hardest hit by the Depression because the 1920’s had not been kind to them anyway.
This job loss forced many Americans to becoming migrant workers. One of the main causes for this depression was that too many people over estimated the stock market’s stability, and they put lots of money into it (Gusmorino). When the stock market did crash, the people that invested in it lost everything. Also, people that put their life savings in banks lost everything they had, because the banks lost all their money. After this, it was hard to get the American people to put their trust back in the banks and the stock market, so President Roosevelt made a series of new laws and deals, creating more jobs, and ensuring that your money would not be lost in a bank.
“These skyrocketing stock prices signaled trouble for the U.S. economy” (Causes of the Great Depression. This caused businesses and factories to fire workers because they lost money when the stock market crash and now since the economy is in fear people did not want to spend their money. In poor areas, schools were being shut down, which left about 300,000 children with no education. If children didn’t get any education then there would be even little hope for them to get a job to keep them financially stable. There was absolute chaos when people heard that the stock market had crashed, which led to bank runs.
And he wasn’t alone. If people did not get their money fast enough from a bank and it closed, that money would be lost forever. The failing banks alone had a huge affect on the economy of the country for this reason. Even though the Great Depression was not President Hoover’s fault, many Americans blamed him and where not happy with how he handled this severe situation. Homeless people built “Hoovervilles”, which were small shantytowns where homeless individuals and families lived.
The plan failed and as a result, Hoover watched as Americans drowned into poverty. He signed The Smoot-Hawley Act into a law, which raised taxes on imports; but it was a huge mistake because it induced foreign nations to turn the other cheek on American-made goods when the country desperately needed sales.Furthermore, in order to deal with the Depression, Hoover encouraged volunteerism. Volunteerism was a collaboration between private sectors and public sectors of the economy, meaning that, Americans should volunteer to help one another. Unfortunately, it was not good enough for many people. The people struggled to survive and needed immediate help in big ways.
Fearing that banks would close, customers lined up to withdraw their money. Since banks rarely keep enough cash on hand to pay all their customers at once, many banks shut down. The Great Depression was the time of great economic hardship, had begun. As banks failed or cut back on loans to businesses, factories produced fewer goods and there... ... middle of paper ... ... not return until United States entered World War II in 1941. After World War I, the price of food began to drop causing some dramatic effects on the United States economy.
The stock market was the main cause that forced American into the Great Depression. The stocks were a towering success until the collapse; the crash forced many Americans into poverty because they had to sell almost everything they had to repa... ... middle of paper ... ...tter poverty. The depression affected millions of Americans and I got to really feel what they went through when I watched the movie Cinderella Man. Jim Braddock the main character of the movie went thorough tough times; he lost his job, couldn’t support his family and witnessed loved ones being lost to the Great Depression. Going through all this just made him a stronger man.
Key Reasons for Roosevelt's Election in 1932 I agree with this statement a lot, even though there might have been minor factors also contributing to Roosevelt's win, these three are the most important. The wall street crash had an impact on ordinary people. It made people wonder if they can go on living this deep in depression. Most were living in poverty and were struggling to feed their families because the husbands could not work, as there were so little jobs available at that time. Even if they had some money in the bank, as soon as the Wall Street Crash happened, the banks closed and they lost their savings.
With the banks relying on the circulation of money and people not needing all of their money all at once, the banks started to go bankrupt as they did not have enough money to give back everyone the money they have in the bank. The closing of banks started a blitz to get money from the banks before they closed due to not having enough money. These were a big part of the great depression and a major reason to the unemployment during this time. GML pg 849 The Presidents during this time were Hoover and Roosevelt and they both used very different tactics to combat the growing deficit in our nation's economics. With the troubling times came troubling problems that perplexed our nation’s government and forced them to deal with unforeseen circumstances that they were not accustomed to.
Steinbeck wrote ‘Of Mice and Men’ hoping that future generations would realise the difficulties millions of Americans like himself were facing. The great depression was the cause of all these difficulties. It all started because of the Wall Street crash (American stock exchange), this made many businesses go bankrupt and were forced to close down. Many banks also became bankrupt losing everyone’s savings, so people were left with no money. Over 15 million Americans became jobless during the great depression and many were left homeless because they could not afford to keep the payments of the houses they had rented out.