America's Worst Economic Time: The Great Depression

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The Great Depression The Great Depression was one of the United States’ worst economic times. Lasting about ten years the Great Depression is also American’s longest economic downfall. The Great depression left millions of Americans unemployed, and caused nearly half of the county’s banks to fail. There were many factors that caused the Great Depression. From the stock market crashing in 1929 to bank failures. The new deal of President Roosevelt has been accredited for saving the U.S out of the economic turmoil it found itself into. America took a turn for the worst in 1929. The economy had been thriving through the 1920s. Industries were producing goods at maximum efficiency. Later limiting the amount of goods that can be sold. Unsold goods began to increase rapidly while prices on items decreased. Ultimately slowing down productions on many of the United States industries. Overproduction…show more content…
Deepening the great depression. Many banks were then considered to be unreliable. People bought things using credit given to them by the bank. Others even invested in the stock market using these credits. When the stock market crashed people than went back to the banks calling for money that the banks never had to begin with. People were growing anxious about the unsureness of the security if their money. Consumers started spending less and the wealthy were pulling all assets and investments out of the economy. Bankruptcies went the roof. The first bank panics began when a bank failed in Nashville, Tennessee starting a wave of bank failures in the Southeast. Depositors lost confidence in the security of their bank causing them to withdraw funds all at once. People who had deposited money in banks lost approximately 140 billion dollars. “In 1933, Franklin D. Roosevelt (FDR) declared a three-day National Bank Holiday to prevent people from withdrawing money from banks. To sell the idea of a cooling off period to the American
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