The Ways The Great Depression Changed American Soc

Essay by EssaySwap ContributorHigh School, 11th grade February 2008

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The Great Depression changed and effected many different parts of the American society. Most of the changes were negative and for the worst not the better. It affected the people, the government and the businesses.

It affected the people because when the Great Depression happened it put the people out of jobs. This caused a great anxiety among people over fear on losing their job. Soon the people could no long pay there rent and moved into hoovervilles where many other homeless and unemployed people went.

The government was also effected by the Depression. The Federal Reserve System regulates the amount of money in circulation; it cut interest rates to stimulate the economic growth. In 1929 the Reserve limited the money supply to dampen lending. But because of the crash it meant there was too little money in circulation to help the economy.

Businesses were also affected by the Depression.

The Depression affected them because people wouldn?t have any money so they wouldn?t spend it in the businesses. Also the Depression affected the banks. Thousands of banks had to close because the could no longer return their depositors money. In 1933 nine million savings accounts had disappeared along with the money that went with them.

That?s why I think the Great Depression effected many different parts of the American society. It affected the people by putting them out of jobs. It affected the government by worrying about over speculation and it affected the businesses by effecting normal business.