How Did The Great Depression Affect The Economy

The Great Depression was an American crisis, right after the Roaring 20’s, where the stock market crashed and forced many people into poverty. The Great Depression affected many people and businesses across the USA.

Banks were greatly impacted by the Great Depression. They were giving away money they didn’t have, which eventually led to them taking from their customers accounts to pay people that were walking through the door. Stockholders were also affected by the Great Depression because stocks started to have no value anymore, which put a lot of people out of money and out of jobs. Bank customers would go and try to get their money but because the bank was taking their money to pay other people, they didn’t have their money anymore. Many people lost their life savings when these banks collapsed. Without money to pay their rent or mortgage, many were forced out of their homes.

Unemployment rates soared, and many men found themselves unemployed. Not able to cope without jobs, some abandoned their families from the shame. More women than ever took jobs outside of the home to help earn money for their families. Families created their own kitchen gardens in an effort to be more self sufficient, and patched worn out clothing instead of

Without money to eat, they had to go to places on the street to get bread and soup. They also had to live in run down places called Shanty Towns. They didn’t have money to eat, so how are they going to be able to afford a house? These Shanty Towns were made of cardboard, scrap metal, dirt, and sometimes even grass. President Herbert Hoover said to all the people in the USA that they would be fine and they would get through it. In his mind, it was the type of thing that just happened and he could do nothing about. Obviously, the people were outraged, they went on to name these Shanty Towns “Hoovervilles,” because they blamed him for causing the Great