Ã¯Â¿Â½PAGE Ã¯Â¿Â½1Ã¯Â¿Â½ The Great Depression
The Great Depression
The Great Depression in the United States was a long-term unpleasant recollection in the history of the American economy. The Great Depression was the most terrible and longest economical collapse of the industrial world, continuing from the end of 1929 until early 1939. Numerous banks and industries were shut down, products were unable to be sold and thousands of people lost their jobs and had to live by begging and resorting to charity.
The causes for the Great Depression go back to the decade after World War I. The United States had a rapid economic growth right after the war. "The economic system was growing outrageously without having the proper control of the government. The big industries were booming and approximately 31% of the wealth of the United States was in the hands of only 1% of the citizens."(Socyberty, 2007) The difference of the wealth of the American people shaped an unsound economy.
"Money was dispersed very differently between the rich and the middle-class, between industry and agriculture within the United States, and between the United States and Europe." (Gusmorino, 1996)
Some of the other causes of the Great Depression were high tariffs, war debts, over production in industry and agriculture and the stock market crash of 1929. During this time products were being produced at a high rate and the purchasing ability was never thought about. Sixty-percent of American families were living on the border line of poverty. There was no one to sell all the products that were being produced. While no products were being sold, loans the industries had taken out still needed to be paid but there was no way to pay the loans. Also due to no money being made caused for a wide spread of unemployment.