Paste your essay in here…An Era of Struggle Called The Great Depression
From 1929-1939, the people of the United States realized there was going to be suffering in the country in many ways. There were limited opportunities and resources available. Before the Depression began, people were spending money not worrying about the future; they were living for the present and for themselves. This resulted in the worst economic downturn that Americans faced since the Civil War. Due to the failing economy, unsuccessful government reforms, and the hardships families endured, the country spiraled into the Great Depression.
The Great Depression began in the United States as a recession in the summer of 1929. Industrial production began to decline and the unemployment rate rose. The Depression affected every country in the world after the Stock Market crashed on Black Tuesday. Due to inexperienced borrowers, buying on margin, lack of government regulation, and domestic and international financial market instability, this caused the acceleration of the global economic collapse. Many banks closed while investors were quickly trying to get their money back. The Depression gave a rise to the philosophy that the federal government should provide a safety net for the elderly, the jobless, the disabled, and the poor (Mintz & McNeil). President Herbert Hoover seemed assured, as well as other leaders, that the crisis would run its course. Though matters continued to worsen by 1930, 4 million Americans were out of work, and the country’s industrial production had dropped by half (Hardman). This catastrophic event made America strong for the years to come.
The issue of the failing economy is first explained as one of the main effects of the Great Depression. There were many consequences toward America’s economy, including fundamental structural weaknesses in the American economic system. For example banks operated without guarantees to their customers, creating panic when times were tough. Few regulations were placed on banks, therefore banks loaned money to future traders to buy stock on margin. The United States Stock Market doubled in the months before the crash began on “Black Thursday”. Though after the crash more than a third of the nation’s banks failed in the three years following 1929. There were long lines of desperate and despairing people outside banks, hoping to retrieve their life’s savings.
Production and unemployment were additional causes of the failing economy. This left stock prices much higher than their actual value. Wages at that time were low, consumer debt was increasing rapidly, the agricultural part of the economy was struggling due to drought and falling food prices. Consumer spending slowed which in turn slowed factory production. The financial crisis was not limited to the United States, rather affecting countries all around the world. The United States was the major creditor and financier of post war Europe. Europe’s economy has been greatly weakened by the war itself, war debts and war reparations. However, when the economy in the U.S. began to fail and the American investment credits to Europe dried up, prosperity began to collapse. The Depression hit hardest to those nation who were indebted to the United States, like Germany and Great Britain. Another consequence due to the economy failing is that American capitalism stopped working. America’s free market economy failed to operate at a level that allowed most American’s to attain economic success. In summary the Great Depression affected the economic system, banks, stock market, production, unemployment, and countries because of the failing economy.
Another issue that led to the Great Depression was the unsuccessful government reforms. When President Herbert Hoover was inaugurated, the American economy was unable to provide the proper relief from hard times. Hoover’s minimalist approach to government intervention made little impact. He launched a massive public works program and his administration implemented stronger protection for labor and substantially increased federal subsidies for agriculture. Hoover passed the Glass-Steagall Act of 1932, which limited the activities of commercial banks in an attempt the stabilize the banks. The effects of these were not immediate and some actually worsened the effects of the depression. The Smoot-Hawley Tariff Act, which Hoover signed reluctantly, raised tariffs on thousands of imported goods and initiated trade war between the United States and Europe. This caused a more global economic downturn and made American exports difficult. Several bills Hoover denied that would have helped the U.S.
As the economy kept failing and unemployment rate rose, a new President was elected. President Roosevelt’s pledge was that “there will be no forgotten man at the bottom of the economic pyramid”. ( ). President Franklin Roosevelt started the The New Deal, which was a set of domestic policies that he created to expand the federal government. Relief for the unemployed and recovery of the economy through federal spending and job creation. Also the reform of capitalism, by means of regulatory legislation and the creation of new social welfare program were the three areas of focus. Some of the programs that President Roosevelt enacted were the Civilian Conservation Corps, Social Security, and the Tennessee Valley Authority under The New Deal. The Supreme Court ruled some of the programs to be unconstitutional, this caused a downturn in his popularity and conflict with Congress. Both Presidents initiated some recovery, but ultimately did not succeed in lifting the United States out of the Depression and achieving its larger economic goals.
Americans went through economic, social, and emotional hardships. President Hoover predicted that one day the United States would soon see poverty eliminated, but as for the current time it was not yet. As an example, middle class Americans stood in the same soup lines previously used only by the nation’s poorest. Bread lines, soup kitchens, and rising number of homeless people, became more and more common in America’s towns and cities. Farmers could not afford to harvest their crops, and were forced to leave them rotting in the fields, while thousands of people starved. Nearly “forty percent of the farms in Mississippi were on the auction block on Roosevelt’s inauguration day” (Roosevelt). Fear of losing jobs and unemployment caused anxiety for many. Those affected were more stunned than angry, many sank into despair and shame when they could not find jobs. This made people depressed and they attempted to commit suicide. Ordinary citizens lost their life’s savings when banks failed, this made unemployed men feel like failures when they could not support their families. Income was low and as a result businesses lost money. Also, children suffered long term effects from a poor diet and inadequate medical care. Schooling became too expensive for most and some dropped out to find work to help support their families. People endured harsh living conditions with multiple adults and children crowded into small houses together. Many began to barter goods and stretch every dollar. Overall this contributed to people struggling during the Great Depression.
The main causes of the Great Depression were because of the failing economy, unsuccessful government reforms, and the hardships families endured. As stated earlier, the United States was shocked when the Wall Street Crash of 1929 occurred. An era of the roaring twenties was gone and panic struck America. Banks closed, unemployment rose, and production dropped, due to the Stock Market Crash. President Hoover and Roosevelt enacted many government reforms that only lasted for a short period of time. There was suffering in America when families had no source of food, income, or housing. The Great Depression was the most catastrophic event in United States history, because all Americans were affected and it was long lasting.