The Great Depression was a worldwide economic depression preceding WWll, which lasted from late 1929 to 1940. It all began on a day named “Black Tuesday”. The date was October 29, 1929. On this date the stock market lost 13% of their value. Since then economic hardships were in the foreseeable future of American citizens. Drought, stock value, and unemployment all contributed to the major struggles faced by citizens of America.
The fall of stock value immediately had major repercussions on the unemployment rate. Document two shows the 16 million shares lost in one day. With businesses having less money in their companies many workers had to be cut loose in fear of going bankrupt. So when businesses fire their employees, the chance of hiring back workers in almost none. This is what caused the unemployment rate to continue to increase. Document three shows that the employment rate increased from 2 million to 12 million by 1932. Without workers the national revenue would continue to decline and in turn your businesses would have less money and businesses would continue as well to fire employees. You begin in an unending cycle until no money is to be made.
Stacked on unemployment was the severe drought the Great Plains experienced during this period. With the land dry, the farmers had no easy access to irrigation. The land began to dry and the increasing winds created top soil erosion. Sweeping away the top soil left farmers with no land on which farm and generate profit that they could live on. Banks lost money as well when the farmers could not pay back loans the farmers received in order to pay for their produce. Document one shows the effects of the dustbowl. It depicts an abandoned house and failed attempts at crops.
There were attempts to regain American economic power. President Hoover and then President Roosevelt both initiated a series of programs that were aimed at boosting employment rates and restoring power to the American Economy. It was...