How Did The Great Depression Affect The Economy
The stock market crash of 1929 negatively affected millions of Americans by decreasing the economy, turning millions of money into nothing, hurting our agriculture, and doubling the unemployment rate. It was an austere time for Americans as they tried to find jobs to sustain their families, and it lasted for about a decade.
The stock market crash became known to everyone as the Great Depression, which started in October of 1929. The stock market prices were gradually dropping, and economic uncertainty finally won over Americans. The price of stock had dropping consistently throughout September, until October when some brokers decided to withdraw their shares. On “Black Thursday” about 13 million shares were sold. Then later on “Black Tuesday” …show more content…
When Americans’ money was turning into nothing, spending in America took a steep decline. Big businesses had huge decreases in profit. Many people also lost their jobs and had no source of income, and no savings. Other countries were also affected. The U.S. was not exporting nearly as much as they used to. It created issues with commerce, countries that relied on the U.S. for goods had to find other ways to get those items. In order to fix this problem, FDR created his “New Deal”, a series of laws that were thought to fix the problem of the U.S. economy. He ended Probation which allowed the alcohol industry to help the economy. He also created the Social Security Act, which provided money for older Americans and those who were disabled or unable to …show more content…
Many farmers were in poverty from losing their money in the crash. But bigger problems were held at the price of crops. Farmers had been overproducing their crops, which consequently, drastically reduced the price of each crop. Many crops died without anyone to harvest them. Many farms were going out of business, so FDR created laws that would help the price of crops go up, and give money to farmers. The AAA or the Agricultural Adjustment Act gave money to farmers who lowered their production rate. Soon the price of crops went up and farmers were able to maintain a steady
The stock market crash became known to everyone as the Great Depression, which started in October of 1929. The stock market prices were gradually dropping, and economic uncertainty finally won over Americans. The price of stock had dropping consistently throughout September, until October when some brokers decided to withdraw their shares. On “Black Thursday” about 13 million shares were sold. Then later on “Black Tuesday” …show more content…
When Americans’ money was turning into nothing, spending in America took a steep decline. Big businesses had huge decreases in profit. Many people also lost their jobs and had no source of income, and no savings. Other countries were also affected. The U.S. was not exporting nearly as much as they used to. It created issues with commerce, countries that relied on the U.S. for goods had to find other ways to get those items. In order to fix this problem, FDR created his “New Deal”, a series of laws that were thought to fix the problem of the U.S. economy. He ended Probation which allowed the alcohol industry to help the economy. He also created the Social Security Act, which provided money for older Americans and those who were disabled or unable to …show more content…
Many farmers were in poverty from losing their money in the crash. But bigger problems were held at the price of crops. Farmers had been overproducing their crops, which consequently, drastically reduced the price of each crop. Many crops died without anyone to harvest them. Many farms were going out of business, so FDR created laws that would help the price of crops go up, and give money to farmers. The AAA or the Agricultural Adjustment Act gave money to farmers who lowered their production rate. Soon the price of crops went up and farmers were able to maintain a steady