So the poor condition of the agriculture sector also leads to the instability of the economy. 3. Crash of the Wall Street: A major reason of the great depression was the crash of the stock market. The stock market was making huge profits and people not only the rich class but the middle class also started investing their money in the stock market. People were taking loans from the bank and were investing them in the stock market.
When banks fold and continue to do so, people will start to worry about their money in any bank. People will want their money to be securely kept until they need it and if the bank is not safe they will remove it. An increase in bank failures during the last few months of 1930 generated widespread attempts to convert deposits to cash. People lost faith in the
The relationship of acute crisis in agriculture and the industrial crisis has made the economic depression worse, famers were angry with their government. The banks looked shaky and depositors wanted their money, making them shakier still, and in time many were forced to close. Factories and businesses got rid of large numbers of employees or closed down altogether, and soon there was no money to buy the farmer’s products or anything else and this causes people is inability to buy Agricultural products. “Farmers struggled with low prices all through the 1920s." Desperate bankers called in their loans, but farmers had no money to pay them and foreclosures and bankruptcy sales became daily events.
Nallely Sagastume Pillsbury US History February 27, 2018 The Great Depression The 1920s was a chaotic time, it dealt with a worldwide depression that affected many countries but most specifically the United States. During this time the economy drifted into a deep decline and left many people jobless and struggling to financially support their families. Many things were going off balance and there seemed no way to solve it, the farming industry fell, unequal distribution of wealth was going around and overproduction was losing a great amount of money, these problems greatly contributed to the Great Depression. The world was falling into chaos but no one really knew what to do until President Franklin D. Roosevelt came up with a great solution
People all over the country were all impacted by this prolonged recession. Many people slumped into poverty and became homeless and unemployed citizens. This immense downturn was due to overproduction, the Wall Street crash, and the weak banking system, the European recession, the Gold Standard and the policies implemented by the Hoover administration. The depression lasted for over a decade before an economic upturn began to take hold. This marked the end of the Great Depression in the 1930’s.
When Hitler came into power in Germany’s democratic system of government was weak. There were people suffering a process of returning people to the place they were born and also returning refugees or military persons to the place they were born after World War 1. There were also lots of food shortages and very high unemployment rates which caused many people to starve and to be very poor due to having no job to source money from. The Great Depression had a rather large effect on the Weimar republic and this had an impact on the people and made them start to lose faith in the republic and this was because the treaty took most of Germany’s money and recourses. The German people were on food rations and they were in economic desperation and they
This caused them to lose many lives due to this. Natural disasters like an earthquake and flood killed many and them, then plague wiped out thousands of people. This caused Rome to become weak because many people in the army died and many people that helped run Rome died. But then because of the floods and earthquake it killed many people and destroyed many things which really put Rome in a tight spot. “The second year of the reign of Valens (366 CE)... the Roman world was shaken by a violent and destructive earthquake.” “But the tide soon returned with the weight of an immense flood which was severely felt on the coast of sicily, Greece, and Egypt… Fifty thousand persons had lost their lives in the flood.” After Rome lost 50,000 people in the flood the plague killed thousands more.
So, this made people die of hunger and lose weight. Some children left their families to go serve their country. The number of sick people increased because they got sick from tuberculosis or pneumonia and other diseases that spread from lack of food or medications. The people died from the disease or they committed suicide because they did not know what to do with their life because they were unemployed and living on the streets and were starving. The people that were living in the streets were now robbing stores and anything on the site that they could eat or use because they could not feed their family and did not have the money or a job.
Beginning with the stock market crash of 1929, the Great Depression took the country by storm. Suddenly, many people were out of jobs and unemployment skyrocketed. Wages were majorly reduced which affected home living situations causing overall devastation. This economic downfall caused chaos and a change in society as people were struggling more than ever to maintain their previous lifestyle. Money was tight so fashion became less extravagant and exotic and resources were no longer in excess, in stark contrast to the roar of the 1920’s.
With interest rates rising it caused many to default on their payments or take out a second mortgage with they couldn’t afford. By August 2008, 9.2% of all US mortgages outstanding were either delinquent or in foreclosure, by September 2009, this had risen to 14.4% (CSI). This lead to a huge number of house for sale and nobody able to buy them. As a result prices fell leaving people paying more than what there house was worth. This caused even more people to walk away from their mortgage because it was a waste of their
During the 1929 - 1939 many people were in debt and a lot of jobs were lost.The Great Depression was bad it affected the whole world, the hoover dam was created and the welfare system was also a result of the Depression. The Great depression had alot of effects on people and the world. The trading routes with other countries to America stopped. When the trading routes shut down alot of people lost their jobs. Many teachers in schools were forced to stop working because the government could no longer pay them.
Seeing how the economy was so shaky, people began to lose confidence. When the businesses started to lose their money, they had to start letting their workers go. This resulted in the unemployment rate rising immensely. The closing of the Ford Plant is an example of the spike in the unemployment rate. People without work were unable to make an income which meant they had to change the way
Hundreds of banks failed, and because bank deposits were uninsured, their depositors lost some or all of their money. What actually caused black Tuesday to happen? Part of the tantrum that caused Black Tuesday to happen was resulted from how investors used the stock market back in the early 1900’s. Back in the early 1900’s or specifically the 1920’s they didn’t have as much information as they did today, nor did they have the technological advances. Stock prices weren’t on computers, they were on tickertape machines.
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.
You hold hope in finding a job, but as the days go on your hope lessens. This happened to many children during the Great Depression. The Great Depression was a difficult time for many people and families because the stock market crashed causing many people to lose a lot of money. Several people lost their jobs so, countless families became poor and money was tight. In result of this many children