Possible Solutions To The Great Depression

728 Words3 Pages
In 1929, America underwent an economic crisis. It was the longest and most severe depression of the industrialized western world. This was known as the Great Depression. The cause of this tragic event was partially caused by buying stock in credit. Banks handed out loans to people but when the stock market crashed, they couldn’t pay back the loan. Nearly half of the banks failed causing savings to disappear. Other problems Americans faced were very low income, and unemployment increasing gradually. People nearly had no money to even almost afford themselves their own life. Problems and hardships were faced during this time period, but there were solutions such as the Townsend plan, soup kitchens and many more trying to be made to help this dreadful situation. Americans suffered drastically during the Great Depression. Industrial business and country was failing. After the stock market crashed many workers became unemployed. For instance in 1929 the percent of workers that were unemployed was about 3%. By 1932 the percent rose to about 23%. This shows how much unemployment increased in the matter of 3 years. (Document 1). The stock market crash had another dreadful effect. Banks closed and people were astonished and surprised, so they crowded the banks to try to…show more content…
In short term it ended the dreadful crisis that almost ruined the US finance. This also reopened banks within a few days. In long term, it got rid of America’s weakest and most unstable banks, and made sure that this would never occur again. The New deal did not solve all the problems the Great Depression had but it sure reduced it. The biggest problem was to put people back to work and the new deal sure did that; it made agencies like the CCC, PWA, etc. to help fulfill that aim. Therefore, Problems and hardships were faced during this time period, but were solutions trying to be made to help this dreadful
Open Document