The Great Depression

Essay by shanniebushellHigh School, 11th gradeA, December 2014

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The Great Depression

"Exploration is the engine that drives innovation. Innovation drives economic growth. So

let's all go exploring" ­Edith Widder. The status on America's economy is what the country

depends on. In the past, there have been various events that have affected our economy in

different ways. The Great Depression of the 1930s was one of the most severe economic failures

of all time. However, it was the American people themselves who caused the era of misery,

President Hoover who responded, and the Americans who were dissatisfied with the measures

taken.

The Great Depression was caused by many factors of the lives of American people. The

Stock Market crash on October 29th, 1929 was one of the biggest causes of the Great

Depression. Two months after the original crash in October, stockholders had lost more than $40

billion dollars. Even though the stock market began to regain some of its losses, by the end of the

year, it just was not enough, which was when America truly entered the era of economic

depression. After the crash of the Stock Market, individuals stopped purchasing items. This

subsequently lead to a reduction in the number of items produced and thus resulted in a reduction

in the workforce. Thousands were left without a job. Also throughout the 1930s, over 9,000

banks failed. Bank deposits were uninsured and thus as banks failed people simply lost their

savings. Banks were less willing to give out loans and people were left in debt. The various

economic failures of the early 1930s left people in a country­wide depression, which signaled

President Hoover to take charge.

President Hoover took various measures to try and end the Great Depression. Since the

Stock Market crash, Hoover had worked ceaselessly trying to fix the economy. He founded

government agencies, encouraged...