Imagine it's October 28, 1929, living a lavish lifestyle, owning a mansion, sailing on a 100 foot yacht every weekend, and having what seems like unlimited money that can be spent on anything at anytime. Then, all of a sudden, October 29, 1929 comes. The stock market crashes, banks are closing everywhere, and personal possessions are being foreclosed upon. The greatest economic downfall in the history of the United States has just began. This would become known as the Great Depression, which suited the time period between 1929 and 1941 perfectly. Everybody was affected, not just city folk. Poverty ran rampant throughout the whole country. The three main causes of the Great Depression are the overuse of credit, uneven distribution of income, …show more content…
The poverty line in 1929 was considered to be an annual income of at least $2000. Most people,at the beginning of 1929, were making that and living happily. But, according to Frederick Lewis Allen’s, The Big Change, the US distribution of income was so uneven that 60% of the population was living in poverty. (Doc. 9). With over half of the country living in poverty, businesses had to lower prices and that caused the businesses to lose money and lay off workers, leading to even more impoverished families. According to the same document, only 40% of Americans were making what was considered a liveable income. (Doc. 9) That 40% of people also had a majority of the money that existed in the United States, which means that less than half of the country could actually pay for the things they wanted, the other 60% could barely, if even, afford the things they needed. Also, 5% of the American populous received 33% of the national income, which means that one out of every three dollars would go to this 5% of people. (Doc. 9). With this small amount of people making this large amount of money, not everyone in the country could even have money, which lead to the massive amounts of poverty. Uneven distribution of income led to the great depression because most of the income went to less than half of the population of the entire country, and 5% of the people made 33% of the …show more content…
People trusted the “Buy now, Pay later” idea, so much so that they bought so much, and didn't have enough money to pay later. The distribution in income was only favorable for 40% of the entire population, and the citizens were gambling on their stock investments and thought nothing could go wrong. Imagine it is October 28, 1929, living a lavish lifestyle in your mansion, only to have the all of the dreams that came true crushed the very next
Click here to unlock this and over one million essaysShow More
The Great Depression was an economic crisis that took place all over the world during 1929-1939. America and other nations were not prepared nor expecting this. Before it hit, stocks were high, businesses were thriving, and jobs were full. This event made the Roaring Twenties turn into one of darkest times in American history. The Great Depression was mostly caused by speculation/installment buying, banking, and unemployment.
In Allen’s chart, he illustrates how only 2% of the American population makes over $10,000 a year. With the poverty level at $2000 a year, most of the American population fell close to or under this annual income (Doc 8). These low wages of annual income made people's’ lives a true struggle. Citizens would work for nearly 24 hours, all week long, just to get by with basic living standards. An example of living at or below the poverty level, is documented in Paul Blanshard’s “How to live on Forty-six Cents a Day” interview with a woman living in South Carolina with her family of 6.
The Great Depression was one of the lowest economic struggles in Canadian history. Throughout this tough time period banks started failing and shutting down. Businesses shut down as well because they were going bankrupt. Additionally the drought that hit in the mid 1930’s caused many people to lose their lives or flee the country. The Great Depression was caused by many social, economic and environmental issues.
The majority of people made under 2,000 dollars a year (Document 9) which was considered the bare minimum to live off of, the buy all of the basic essentials. These people didn’t have any money to spend on luxury items and couldn’t buy on credit. During this time, some companies priced their goods at a higher price than the majority of people made in a year, like boats that were priced anywhere from 10,000 dollars to 35,000 dollars (Document 8). With nobody to buy from them, these businesses were left without a profit and began going bankrupt. An average family before the depression with two people working full time jobs only made around twenty dollars a week (Document 7).
The percentage of the time for most American families lived at or below that line in 1929.The connection between the documents stated earlier is the poverty was huge. Uneven income distribution helped cause the great depression because people were losing jobs
The percentage of Americans that were losing jobs was outrageous “25 percent of all workers and 37 percent of all nonfarm workers were completely out of work. ”(Great Depression) and that only increased. The people moved and were kicked out of their lands feed to find work elsewhere but work was scarce and was no where to be found. The african americans also had a harder time finding work as the whites were given unfair priority. Their was a substantial gap between the rich and the poor and the poor was the lowest percentage of people in the Americas.
The Great Depression was the worst economic downturn in the history, which lasted from 1929 to 1939. It began after the stock market crash of October 1929, which sent Wall Street into a panic and wiped out millions of investors. Spending began to drop, and it caused declines in employment and some companies began to lay off workers. By 1933, the Great Depression reached its lowest point and millions of Americans were unemployed. The 1920s consisted of dramatic social and political change.
The Great Depression is a dark period of American history. This period was earmarked by the implosion of a weakened banking system and resulted in the stock market crash on October 29, 1929. The ensuing years saw an incalculable amount of joblessness, extreme poverty and vast financial ruin. No community was hit harder by this period than American minorities. Still struggling from the unhealed wounds of the civil war, the scars of immigration and sexual discrimination; blacks, Latinos and women faced disparities unlike no other.
As said by Blumenthal and Freedman, “The Great Depression began with the crash of the stock market in October of 1929 and peaked from 1932 to 1933” (2005,para. 2). This is significant because the stock market crash made all of the banks crash. It’s banks crashing left and right, it left the people to try and find ways to make money. Research shows that, “The average family income dropped by 40% during the Great Depression with more than $1 billion in bank deposits lost due to bank closings”(U.S. History The Great Depression, 2007 para.
Industrial production dropped by half, breadlines, soup kitchens, and the homeless shelters became popular in America’s town and cities. In Document six, it explains how consumers have to reduce purchases and cut back on spending habits and how farmers struggled not being able to afford to harvest their crops( William E. Leuchtenburg, The Perils of Prosperity, 1914-1932, 1958). Also in Document seven, and eight it states that, people and families have to stretch and makes ends meet on what they have and also finding a way to make things cheaper (Paul Blanshard, “How to Live on Forty-six Cents a Day,” The Nation, 1929/ Fortune, February
The Great Depression was a severe worldwide economic depression that took place during the 1930s. The article by Edwin Gay and pictures compiled by Cary Nelson are both descriptions of how the Great Depression was and the several impacts that it had on the American economy. The range of the great depression is unprecedentedly wide according to Edwin Gay. The great depression was believed to have started from the collapse of the US stock market in 1929. This was shown in a picture as compiled by Cary Nelson
There began to be a gradual decline in prices and the stock market ruptured. On October 24, 1929, the infamous “Black Thursday” took place, where stock holders went on a panic selling spree. Things then went from bad to worse, stock prices went down 33 percent. People stopped purchasing goods and business investments decreased after the crash. In the fall of 1930, the first of four major waves
he Great Depression was a time of huge economic downfall. During this time period people lost their homes, money, and everything they had ever earned. Millions of people were affected, including the middle and lower classes, who would just become poorer. People in upper classes, even dropped to the lower class. This downfall began on October 29, 1929, and the leading cause was the crash of the stock market.
During the Great Depression the unemployment rate went up, they were forced to eat at soup kitchens or go through garbage cans for food, and they even had to build shelter out of cardboard. The first underlying cause of the Great Depression was underconsumption and overproduction. Many things contributed to the underconsumption of goods. The production line kept producing goods even when people could not afford to buy them.
Nishat kazi (Muniya) 11th grade The Great Depression was one of the worst downturn of economy in the history that took place during the 1930s. It had a catastrophic effect in countries on both rich and poor. Though there are a lot of causes behind the Great Depression,the main three causes were-1.Bank failure 2.Stock market crash 3.laissez faire.