The Real Great Depression
A simple way to explain the situation of the Great Depression is dismal. Entire families were uprooted from the solid foundations that they created several years before. This was a time of immeasurable economic instability, and as many of us have read, the depression started with the atrocious crash of the stock market in 1929. It is true that the crash was the fire starter for this grave situation, but our countries economy troubles started to crumble throughout the twenties. The whole situation caused many problems for society such as poverty, hunger, and many questions about our great countries economic foundation. The Great Depression was not only caused by the crash of the stock market, but by expensive tariffs on imported products, surpluses in production and farming, unequally distribution of funds, a laissez-faire attitude by the government, and a panic over the financial situation. The unequal distribution of wealth throughout America was the single largest cause of the depression of 1930’s. From the beginning of the twenties, the total income of the U.S. jumped from $74 billion dollars in 1922, to an astonishing $89 billion dollars in 1929. On paper this jump looked good, but the gains were so unevenly distrib
A major problem now facing suburban America was the reality of not having a home. Many families were forced out of their homes when banks had to foreclose leaving men, women, and children to find any shelter they could. Many people would use any objects that they could find to make shelter. Old crates and scrap metal were used to create makeshift houses called shanties. These shantytowns were cleverly called "Hoovervilles" because of President Herbert Hoover, who was blamed for the catastrophe. Hoover even refused to allocate any financial aid to workers who were now unemployed leaving many families with now way to earn any money. Farmers were left with a large surplus, but there was no way to sell them for a profit causing farmers to be in the same predicament as unemployed workers. There were few middle to lower class workers with any money to support their families from 1929 to 1933. Getting food to families was an extreme chore during the depression. Parents would try to feed their kids first, but sometimes nobody ate at all. With rising stress levels, people often looked to suicide as the quick answer. Suicide levels were increasing every year from 1929-1933 in all major cities. This was the only way out for many but overall, it just left people with more questions and problems. With no money or possessions, people had new virtues to focus on such as friendship and family values. Another act that was set up by Roosevelt was the National Industrial Recovery Act. This set up series of codes to regulate prices and production of industries. The act was not only looking at the well being of the industry but also the workers and its consumers. When business would cooperate, rewards given out by the government like suspending antitrust legislation. Roosevelt also set up many other acts and agencies such as the "Emergency Banking Act, Emergency Farm Mortgage Act, Agricultural Adjustment Act, the Public Works Administration and the National Youth Administration." All of these acts and agencies targeted most problems in America like unemployment, banking, rebuilding the stock market and creating security and confidence in Americans. This New Deal was a huge factor in bringing the U.S. out of its "slump" because its impact effected everyone almost immediately. Now the country was on the rise, and even though there was one more year of recession to hit America in the 30's, the future was looking brighter (Taylor). Not only was money unequally distributed, but also tax laws helped rich folks keep their money. Basically, the rich stayed rich and the poor got poorer. This happened because income taxes were lowered for the wealthy class and gift taxes, along with inheritances, were protested. America started to become dependent on the wealthy population making expensive purchases instead of proportional price level purchases. The buying power of the lower and middle class dollar lowered creating a larger gap between the opposite classes (Joseph). The one question that every person asked in the Great Depression was this: whose fault was it? Some blamed bankers, stockbrokers, and businessmen but most fingers pointed to Herbert Hoover and his Democratic Party. President Hoover had an economic approach similar to that of Europeans views of the "laissez-faire". Laissez-faire means to leave it alone, and that is exactly what Hoover did with the economy until it was too late. Entire markets had the free reign to do whatever they wanted without the government interfering. With no government control, the business's set up monopolies, which dramatica
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Approximate Word count = 2423
Approximate Pages = 10 (250 words per page double spaced)
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