The Great Depression and the Recession of 2008

The Great Depression and the Recession of 2008

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The Great depression and the Recession of 2008
There were many causes for the great depression in the 1929; the most noticeable one was the stock market crash of 1929. This crash started on the 24 of October then on October 29, the stock market just dropped on a day called Black Tuesday. After that, everything fell, the banks failed because they do not have the money to give out to the people. There was also a reduction in purchasing across the board. There was also severe drought and American economic policy with Europe was strict which made businesses to fall. These things added to the great depression and how severe it became because people and the earth was not cooperating.
The people living in the Great Depression had many hardships and were struggling each and every day just to find money to buy food. People would starve and there was a widespread of hunger, poverty, and unemployment. When the stocks crashed the unemployment rate went from 9% all the way up to 25%. They estimated that about 15 million people lost their jobs because of the great depression. The banks had to shut down because people would take out all of their money from the banks and since people did that, the banks had no money to give to their people and would have to shut down which caused some people to lose all of their money they had in the banks. About 9,000 banks went of business because of this and people that had a savings account lost everything in it, there were more than 9 million savings accounts were wiped out.
Throughout the great depression banks failed. Bank deposits were uninsured and made banks fail and made people lose their saving with the bank that failed. The banks that were still going in the great depression were unsure of the economic situation and were concerned for their own survival and were hoping they can just wait it out until it goes back up, so they stopped giving out loans. Also with the stock market crash the fear of it crashing made people stop purchasing things which made the things that companies make go out business because nobody is buying their product which means that they have no money to pay their workers which means the companies would have to file for bankruptcy. When the companies go out of business things skyrocket like milk or sugar because no one is making it and there is a demand so there was inflation in the everyday life of a citizen.

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