What Are The Worst Effects Of The Great Depression

The great depression was one of the most severe economic situation that the world had ever seen which took place during late 1929 and lasted till 1939 was one of the deepest and long lasting economic downturns in the history of western civilization. This depression began a bit after the stock market crashed in the month of October of the year 1929 which wiped out millions of companies and send into panic rich investors. As the years passed people realized they would need to spend less money therefore investment dropped which caused a dramatic decline in industrial outputs and a tragic high level of unemployment as failing companies laid off workers. Years later by 1933 as the great depression reached its greatest point of despair, about 13 to 15 million Americans were unemployed and nearly half of the country's banks had failed. Although, with the relief and the reform plans and measures with were put in place by President Franklin D. Roosevelt it helped lessen the worst effects of the great depression in the 1930s. This would change American history in many ways, it showed American's to stay strong and made America realize that if you endure throughout tough times you will persevere and become stronger just like we are today.
T here were many reasons which caused the development of such a
tragic occasion and some of the reasons where the farm depression of the 1920s, unequal distribution of wealth, the stock market crash and financial panic, high tariffs and war debts, and the dust bowl.
The farm depression of the 1920s was one of the major factors that led to the great depression. This took place throughout the 1920s and is not very famously known but had such an impact on the economy because prices of the farm productions decreased dramatically at around 40% by 1921 and remained low all throughout the 1920s. Just as well, the farmers were producing more products than more than American consumers were consuming. This caused that some of the farmers lost so much money that they were not capable of paying such high debts, and their farm's mortgage. This caused thousands of families to rent the land and if that did not work out, they were forced to move out.
Another of the major causes of the Great Depression was the uneven distribution of income and even throughout the industrial production increased at around 50 percent which was caused by the industrial revolution but the wages of the industrial workers rose far slower than the production rate.
And as a result of that these workers were not capable of buying certain goods as fast as the industry was producing them. At this time 99 percent of the population (121,770,000) was receiving a 9 percent increase in their incomes, while the other top one percent (1,230,000) saw their income rise by 75 percent. This was mostly because of monopolies that were taking place during this
period.
But the most important reason for why this tragedy occurred would be due to the reason that the stock market crashed. On October 29, 1929, Black Tuesday hit Wall Street as investors traded some 16 million shares on the New York Stock Exchange in a single day. After this millions of dollars were lost, wiping out thousands of investors. In the aftermath of Black Tuesday, America and the rest of the industrialized world spiraled downward into the Great Depression (1929-39).
High tariffs and war debts were included as reasons of the Great Depression because the United states was in big amounts of debt. But what the united States did not really know is that after that period of time, the most devastating war that had occurred would take place less than a year after the great depression. This war is known today as world war two.
At the beginning of the depression a really tragic moment happened for American farmers in the southwestern part of the united states and that occasion is known now days as the dust bowl migrations which forced many people to go through hunger and led to crop failures.