Michael Coppola P.5DBQ Essay Essays - Economy,

Michael Coppola P.5DBQ Essay The Great Depression The Great Depression was an economic crisis placed in the 1920-1930's . Although the 1920's seemed to thrive with wealth , it was only an illusion. No one faced the true consequences until the 1930's where the stock market crashed and fell apart. Franklin Roosevelt and Herbert Hoover worked during their presidencies in the 1930's to help put an end to the Great Depression. The stock market crashed and caused the depression, affecting many American's challenge to survive in a new found economy. Many believe mistakenly that the stock market crash that occurred on Black Tuesday, October 29, 1929 is one and the same with the Great Depression. In fact, it was one of the major causes that led to 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 1930, it was just not enough and America truly entered what is called the Great Depression (O.I.). Throughout the 1930's over 9,000 banks failed. Bank deposits were uninsured and thus as banks failed, people lost their savings. Surviving banks, unsure of the economic situation and concerned for their own survival, were not willing to create new loans. This worsened the situation, leading to less and less payments. (O.I.). With the stock market crash and the fears of further economic despairs, individuals from all classes stopped purchasing items. This then led to a reduction in the number of items produced and thus a reduction in the workforce. As people lost their jobs, they were unable to keep up with paying for items they had bought through installment plans and their items were repossessed. More and more inventory began to accumulate. The unemployment rate rose above 25% which meant, of course, even less spending to help alleviate the economic situation (O.I.). As businesses began failing, the government created the Smoot-Hawley Tariff in 1930 to help protect American companies. This charged a high tax for imports thereby leading to less trade between America and foreign countries along with some economic retaliation (O.I.). While not a direct cause of the Great Depression, the drought that occurred in the Mississippi Valley in 1930 was of such proportions that many could not even pay their taxes or other debts and had to sell their farms for no profit to themselves. The area was nicknamed The Dust Bowl. This was the topic of John Steinbeck's The Grapes of Wrath (O.I.). These factor sent America's economy to a plummeting fall. Complete recovery would be a long way. The Great Depression impacted many Americans' lives. The unemployment rates peaked at 25% during 1933. (Doc.8) Businesses closed and people lost all their money. Some took work in the worst of conditions for only pennies. Many people started hunting for game just to feed their families. Families in the cities even resorted to catching rats to eat. Suicide rates increased dramatically. Many people died from starvation and disease unable to feed themselves or pay for a doctor. Many resorted to the barter and trade system instead of money (O.I.). These people were going to battle some of the worst conditions America has faced. American's used their resources and wits to fight against these obsticals. Many American's moved to "Hoovervilles", towns of houses that lived off the remains and scrap of past society and the land (Doc.4). People who were more fortunate, made soup kitchens, for the people who have little to eat. While causing massive unemployment, the Depression era also triggered labor militancy and encouraged workers from the major U.S. industries to organize and fight for their rights. After 1935, when the National Labor Relations Act granted workers the right to bargain collectively, the unionization movement gained momentum. Steel and auto workers made some significant breakthroughs in the 1930s, obtaining wage increases and a forty-hour workweek (O.I.). Americans found refuge in the entertainment outlets that had become popular in the U.S. since the 1920's. Radio shows and musical programs continued to captivate audiences. In addition to news, political commentaries and music, the radi o also featured fifteen-minute soap operas (named after