The Great Depression

Essay by PaperNerd ContributorCollege, Undergraduate April 2001

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The Great depression happened in the year 1929 when the stockmarket crashed and stock values in the unitedstates dropped rapidly. Many causes that contributed to it were bank failures and low incomes among farmers and factory workers. Also uneven pay of income among workers also added to the economic slump. Life was hard for the farmers they often were not successful many had to sell their land. Prices of farm products fell 40%.

Also businesses like banks had lots of failures because most of them had farmers as customers and because of that they didn't have enough money to pay the banks. About 550 banks went out of business. Also alot of factories went out of business and bunches of people were left unemployed. In many of the vacant areas the unemployed workers built shacks because they had no houses, these villages of shacks they built were referred to as Hoover vill, he was the president during the start of the depression.

Herbert Hoover was later replaced by teddy Roosevelt. one solution Hoover had was to try to soften the depression by leaving business alone without supervision from the government. Another idea he had was the (RFC) or reconstruction finance corporation which lent money to banks, It was the best idea that he had that actually worked. Then Roosevelt had the new deal which helped the best he said the government had three main purposes, first relief to the needy, second adding nation wide business by providing jobs and third laws to reform business government so it wouldn't happen again. The great depression ended in 1944-1945.