During the Great Depression , public all around the United States deal with the obstacles and life changing misery . The government was the primary cause of the great depression. The Great Depression may have been avoided if the fed had not so awkwardly mishandle It’s financial policy . Countless public going through experience from low incomes, poor living conditions, and mental suffering. Before the stock display crash , the democracy was floating on a rash of joy. Peoples’ courage was huge and the stock market was increase . In September 1929 the stock market took a descending trend and extend to drift through October .
Historians believe to be it the worst day in the history of the stock market . The crash in October did not cause the depression . They were many aspects that preceded the crash that contributed the situation. The enormous cause of the great depression were across in the world. it was a direct cause of the increase of abandonment in Germany dominate to the world war two. In 1929 the stock market crash did not affect public because not everyone has the extra money to invest, but as banks and business reacted to cut cost . In the 1920’s ,The American industries contained few basics of the cash .
That lack of diversification share to the downturn of the economy because when these businesses weakened and sales fell excessively , there were not any yet works that were send and establish enough to cancel out the damages made by refuse of these industries like manufacture and automobiles sales. During the 1930’s above nine thousand banks break down . Bank security were uninspired and bank lost people savings. .”As the public increasingly held more currency and fewer deposits, and as banks built up their excess reserves, the money supply fell 30. 9 percent from its 1929 level.
Though the Federal Reserve system did increase bank reserves, the increases were far too small to stop the fall in the money supply. As businesses saw their lines of credit and money reserves fall with bank closings, and consumers saw their bank deposit wealth tied up in drawn-out Bankruptcy proceedings, spending fell, worsening the collapse in the Great Depression” (smiley). Indeed , some guys pass the full Depression without finding a work and found it very problematic to accept economic and actual help from government . The Great Depression damage all groups, ages, and races of people.
African Americans and business partners were two groups, particularly touched by the Great Depression. They contribute identical and particular Great Depression experiences. The depression’s experience full have a bad effect on the country as whole, but some societies were still able to increase . Those unhappy citizens that lived in the great plains states were also handling with the effects of the Dust Bowl during this time . some cities were successful suitable to catch themselves working in depression valid jobs such as the cigarette and shoe accomplish industries .
In 1920’s there was the serious lack of diversification in the American economy . In the late of 1920’s prosperity depends on a few different industries , automobiles and company that they are beginning to declined . Automobile sales began fast to decline, but in first nine months of 1920’s, they declined by more than one third . These industries start to slow and there are not enough quality in other countries. Also prospering during the 1920s was businesses dependent upon the radio industry . The life during the Great Depression was worse and people life in cities and town are bad .
The homeless people taken over by a wave of who needed the shelters . As the depression depended ,cities beaten people from all parts of the country . Farmers move to the cities . When the farms fail to provide even sustenance living, many farmers were forced to uproot their families and move into the cities and towns because their families abandoned their worthless land . Thousand of the unemployed residents who could not pay their rents they are the public assistance and bread lines . Thousand of the families put on the street every month . Many cities just ran out of money and were even forced to pay city employees.
With so many taxpayers and both workless and shelterless . American cities lost a major source of income . They worked for years share coping, but never able to ahead . Labor organization helped farmer to protest and offered leadership. But the most farmers ,the political agenda of the communist party was unimportant . They just wanted to able to make a decent living and provide for their families.. The Federal Reserve could have stopped bending by avoid the crash of the banking system by cancel out the collapse with an development of the financial base, but it failed for the most reasons .
The industrial crash was unsudden and decision makers lacked effective mechanisms for resolve what went bad and required the government to take response suitable to fix the recession . Alternative decision makers miscalculate sigs about the state of the economy, Like the ostensible interest rate, because of their attachment to the real bills ideology . Others suspect prevent the gold standard by boost interests and decreasing the amount of cash and credit to be improved for the economy than promote weak banks with the differing behavior.
When the Great Depression started, Herbert Hoover had the bad luck to be president . And if he failed , the country will blame him for their trouble . but if he wins, many citizens would think he was a great president. In the 1920’s Hoover was most educated of the three presidents. As the Depression became poor, however , calls expand for increased federal interference and donate . But Herbert Hoover declined to suggest federal government in make better prices, controlling businesses, or shape the value of the cash .
He was willing to give ambiguous service to banks or provincial people works project , but Hoover decline to use federal money for direct care to citizens. Instead, Hoover concentrate on suggest to increase money. “Hoover’s opponents painted him as uncaring toward the common citizen, even though he was in fact a philanthropist and a progressive before becoming president. During his reelection campaign, Hoover tried to convince Americans that the measures they were calling for might seem to help in the short term, but would be ruinous in the long run.
He asserted that he cared for common Americans too much to destroy the country’s foundations with deficits and socialist institutions. He was soundly defeated by Franklin D. Roosevelt in 1932″( THE GILDER LEHRMAN INSTITUTE OF AMERICAN HISTORY). In American history the great depression was the cruel time . Economic and agriculture disgrace seriously wounded America and American people. The fearless men ,women and children who face those misty years demonstrate incredible courage , flexibility and inventiveness. As the discouragement of the great depression decrease , the American people once again faced strange challenge in world war 2 .
