Great Depression Dbq

The great depression

The great depression was the greatest economic fall in the history of the United States. People had to live through hardships during the period of 1929-1939. During the depression banks closed, the stock market crashed, and a lot of people lost their jobs and became homeless. The great unemployment rates created backset in employment and economic production.

What were the causes of the great depression? Firstly banks invested in the stock market. After the stock market crash all the money that the bank invested was lost. The money that the bank lost was essentially money from other people who entrusted in the bank. The federal government increased the making of money

The day the stock market crashed October 24, 1929 also known as black Tuesday. The market value dropped thirty billion dollars. Lots of people were unemployed and lost their homes. 1929-1932 worldwide the GDP fell by estimated fifteen percent.

GDP is the gross domestic product. The GDP is manly used to measure the greatness of the economy. It tells the total dollar value of all goods and services produced over a specific time period. GDP is calculated by either the income approach or by the expenditure method. The income approach is calculated by adding up the total compensation to employees, gross profits for firms, and taxes, less any grant.

The expenditure method is the more common approach and is calculated by adding total consumption, investment, government spending, and net exports. So when the economy is bad the stock prices fall and when the stock prices fall the GDP growth turns negative which creates a recession.

During the stock market crash people lost a lot of money, but people who bought stocks “on margin” lost everything. Factories, banks, and other businesses started to foreclose or be repossessed. By1930 four million were jobless the number raised to six million in1930. England, Glasgow’s unemployment rose up to thirty percent, but in Newcastle unemployment rate rose to seventy

Hoover thought America could get through the Great depression by hard work. Hoover also tried to boost the economy by creating jobs, but it didn’t work and people started to lose faith in Herbert Hoover. In 1929 the employment rate was 3.2 percent; by 1933, the unemployment rate reached 25 percent. Soon these little towns of poor unemployed people called Hooverville’s.

1933 fifteen million people where unemployed. Hoover said that we could get through this with hard work. People in both urban and rural lost their jobs, had no house, and had no money. Since the people didn’t have homes they decided to build shanty towns. These communities became called Hooverville’s named after the one and only Herbert hoover. Hooverville homes were made out of cardboard, tar paper, glass, lumber, tin or they would use whatever they could find.

In the depressions many people lacked food or place to stay. So people started food riots or food marches. In Minneapolis in February 1931 people broke into a grocery market and stole food. The store’s owner pulled out a gun to stop the looters, but was jumped and suffered a broken arm. During the great depression seven million people died of starvation. Other than there being people being hungry, there were two million homeless people in the United