The Recessions of the Great Depression-Rough
The Great Depression affected the United States economy because they went into an economic recession, which led to a loss of confidence in the general public. This was a hard time for everybody, and when tough times call, you can only press your luck so far. It all started when the U.S. Economy had the Stock Market Crash on October 29, 1929, also known as, “Black Tuesday.” The Great Depression followed almost a “decade of spectacular economic growth.” There was a “general slowdown in economic activity.” This sent the United States going in to the longest and darkest economic depression in American history. Every few years the Gross National Product & total of all goods fell with billions of dollars. In 1932, industrial production began to barely revive. The first two years, the President relied on businesses to voluntarily maintain production and payrolls. He created a loan agency called the Reconstruction Finance Corporation, which then became an essential agency of the New Deal. The New Deal was also to help counteract the effects of the Great Depression. On October 24, also known as “Black Thursday,” the market “lost 11% of its value at the opening bell on very heavy trading.” With many Wall Street bankers trying to help alleviate the chaos and panic from everyone, and with credit to over-indebtedness, over-speculation was used a lot, actually, too much during this time. With economists buying only a percentage of stocks, they were never able to pay back the amounts in enough time. The general public had no confidence after the Wall Street Crash. They thought economy could never get better, and that their life was over. They had a reason to lose hope because there was mostly unemployment with workers having to move in and out of having a job and losing jobs for months. They had to save, borrow, and even beg to avoid “severe hardships,” depending on government and charity. Unemployment reached 25%...
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