Also all of the secondary business went down too, so nobody bought anything so all the workers were unemployed. Afterwards the businesses which relied on others, for example cars rely on tyres so if the tyre business went down then the car business would have to go down. This happened all over America and had a huge knock-off effect on the farmers as they need a lot of farmers to grow crops. This was all because of a financial disaster, and all of the countries around the world were involved and lasted for a decade. This links to the novel because Lennie and George signify a s being from the depression and looking for jobs.
From 1929 to 1933, more than two-fifths of the nation’s 24,970 banks disappeared through failure or merger Robert J. Samuelson: Revisiting The Great Depression; page 15). Banking panics began as large numbers of investors lost confidence in their banks and demanded deposits in cash. As more banks went bankrupt, it only increased the panic and the demand for Americans to withdraw their money from the banks because they did not trust them. In addition to the banking crisis around the country, banks reduced lending and there was a fall in investment. People lost savings and this reduced consumer spending.
The Great Depression start on October 29 1929. The Depression was a time of economic downturn resulting in many people losing their jobs, house money, etc. The Depression started with the crash of the Stock Market which quickly spread its way through America. Herbert Hoover, Franklin Delano Roosevelt predecessor believed in an economic philosophy called Trickle Down Economic meaning that if a Business does well the whole economy benefits. During the beginning the depression very little businesses succeed so still no people benefited from a quote unquote flourishing business.
During the 1920s, the stock market crash of 1929 led to the great depression. This caused the banks to lose millions of dollars. The depositors did not receive all their money because the bank didn’t have enough to give the money all back at once. The banks had failed many people because bank deposits were uninsured.
One cause of the Great Depression was the Stock Market Crash of 1929. The Stock Market Crash in return led to thousands of national banks failing, and billions of dollars lost in deposits (Barnes & Bowles, 2014). Americans become frightful of losing their cash, and they rushed to pull their reserve funds from their neighborhood banks.With minimal expenditure staying inside the banks created a destruction or closing of a significant number of the nation 's bank. The last result viewed as that the banks had fizzled. So battle such a cause it was chosen to the "end the country 's financial institution by President Roosevelt.
The effects of the Stock Market Crash of 1929 on the United States Introduction….. World War I Ends American Banking Relationships with European Nations Black Tuesday attribute to October 29, 1929, when the seller traded nearly 16.4million shares in the New York stock swap. A lot of people know it as the beginning of the great depression. These people that invested in these banks lost their money. It was one of the worst days of the stock market crash. Great depression A lot of the investor got wiped out, because they invested their money.
Due to this, many people were unemployed and money and food began to run low. Thence, this caused under-consumption which meant that increasingly the working classes could not afford to meet the demand for the volume of goods being produced as incomes lagged far behind the availability of new goods. Unfortunately, “the Great Plains were hit hard with both a drought and horrendous dust
The goods that were being imported after the Black Death were extremely overpriced but since the population size dropped the demand for food was lower therefore decreasing the prices of food (Spielvogel World History and Geography). It was challenging and unhygienic to exchange goods through trade or produce them thus the prices of imported goods shot up. To add more to the goods crisis, large amounts of farms and villages stopped producing goods simply because most of the people who lived there died. Since huge amounts of free land was left behind, people stopped paying their rent assuming that is was acceptable thus causing tax rates to decline. Financial businesses were deeply affected and destroyed because machines being used to build things were broken or abandoned and no one remained to fix them.
Basically, the stock market had reached a significant low during October 1929. The American consumer became concerned and worried. Due to their worries, buyers quit buying as much and goods began to pile up. Since products were not needed, businesses began to slow down production of products, businesses weren’t making money, and so workers were laid off. The businesses which did remain open, found certain tactics helped them to
Traders had a reduced amount of demand because no one wanted their goods, 18 000 farmers at the end of 1932 had lost everything and had gone bankrupt, this statistic also lines up with the fact that 1 in 20 farmers were evicted . Prices of houses plummeted by 80% of their original value There was a wide spread drought affecting areas such as Texas and Dakotas . the soil became eroded and the high winds created the terrible dust storms , this area was soon know as the dust
The Great depression sent it affects all through the world. Though millions of Americans lost their jobs and homes. Soon “Hoovervilles” started to take over all over the country which were shacks of improvised housing for people who lost everything. When F.D.R came into office in 1932 he helped Americans and America start to recover with the passing of many laws and regulations . One change was the creating of the FDIC, which insured the peoples savings stayed in the bank.
Everyone has depression, but did you know on October 29, 1929 the whole US went into depression. People lost their jobs, people lost their homes and lot’s of other things. Every bits and piece was super valuable at that time. Some effects the Great Depression had on people at that time was people lost their money. In an article called Digging In by Robert Hastings a girl explains how importants every minute of light is.