What Caused The Great Depression
The thriving twenties was a prosperous time for everyone alive, but in the thirties that would completely alter. The Great Depression would strike so suddenly almost no one would expect it. Still declining in 1939, the depression would last twice as long as any previous depressions. The unemployment rate grew up to twenty five percent in 1933. Those who did have jobs we're losing hours of work hours by nearly six hours (Great Depression)! Those who were unemployed, lost everything, and were forced to live on the streets could not gain much help because a fourth of the population was living on the streets. The economic crisis partially causing The Great Depression were national panic, extension of credit, and Franklin Delano Roosevelt declaring
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The crash led to several “bank runs” where large groups of people removed their money from the banks, forcing banks to pay off the loans. Often times, these acts led to the failure of the bank or being forced to merge with other banks (History.com Staff). In 1933, 140 billion dollars were lost due to bank failure. During the 30’s, 9000 banks failed in total but in the previous decade only 70 banks failed yearly (Bank Failures during the 1930s Great Depression)! Unfortunately, many people lost most of their money to the banks due their closing because there was no such thing as deposit insurance. If the bank all your money in failed, you lost all of it(Bank Failures during the 1930s Great Depression.).
Banks closing, people losing jobs, and national panic does not lead to a great outcome. The Great Depression was a time of sadness, hopelessness, and fear, partly due to bank failure. There were several “panics” which are where nervous people extracted their money out of banks believed to be closing. This led to many banks failing and their customers losing all of their life savings. Banks in the United States dropped thirty-five percent between 1929 and 1933 (Great Depression). Sadly, national panic was a partial factor of the
The crash led to several “bank runs” where large groups of people removed their money from the banks, forcing banks to pay off the loans. Often times, these acts led to the failure of the bank or being forced to merge with other banks (History.com Staff). In 1933, 140 billion dollars were lost due to bank failure. During the 30’s, 9000 banks failed in total but in the previous decade only 70 banks failed yearly (Bank Failures during the 1930s Great Depression)! Unfortunately, many people lost most of their money to the banks due their closing because there was no such thing as deposit insurance. If the bank all your money in failed, you lost all of it(Bank Failures during the 1930s Great Depression.).
Banks closing, people losing jobs, and national panic does not lead to a great outcome. The Great Depression was a time of sadness, hopelessness, and fear, partly due to bank failure. There were several “panics” which are where nervous people extracted their money out of banks believed to be closing. This led to many banks failing and their customers losing all of their life savings. Banks in the United States dropped thirty-five percent between 1929 and 1933 (Great Depression). Sadly, national panic was a partial factor of the