How Did The Great Depression Affect The Economy In The 1930s
During the 1930s, the United States went through the most tragic and terrifying economic downfalls in history known as the Great Depression, which lasted from 1929 to 1939. Americas 31st president, Herbert Hoover, allowed the country to fall into a complete state of depression with his very little concern of the major economic problems occurring at the time. Franklin Delano Roosevelt, who took over as president after Hoover, was ready for action and attempted to bring America's citizens and economy out of the tragedy through many different social welfare programs known as the New Deal which was enacted from 1933 to 1938 in order to bring America out of the Great Depression. The Great Depression was a well-known major, devastating, financial
…show more content…
The creation of the stock market, credit card spending, and actions of American banks were the main factors of America’s economy. During the early 1930s, Americans were constantly investing into the Stock Market. The Stock Market is a place where stocks are bought and sold. Stock is ownership in a company and it is sold in shares. If the corporation succeeds, its value may rise. This means that the value of its stock also rises If the corporation does not do well, it may lose value. This would drive the value of the stock down (Holt, 673). For much of the decade, the easy availability of credit had allowed many Americans to buy the automobiles, radios, vacuum cleaners, and other products rolling quickly off the nation’s assembly lines. By the end, of the decade, however, many consumers were reaching the limits of their credit. The pace of purchases slowed. Warehouses became filled with factory goods that no one could afford to buy. Investors also used credit to purchase stocks. This risky practice increased during the 1920s as the stock market rose sharply (Holt, 675). The Federal Reserve Board takes actions and sets policies to regulate the nation’s money supply in order to promote healthy economic activity. In the late 1920s, the Federal Reserve’s move was partly successful, at least at first. Borrowing from banks by brokers began to decrease, but it was replaced by money from a new source. Large American corporations began providing brokers with the cash to make margin loans to investors. As a result, the run-up of the stock market continued despite the Federal Reserve’s actions (Holt,
The creation of the stock market, credit card spending, and actions of American banks were the main factors of America’s economy. During the early 1930s, Americans were constantly investing into the Stock Market. The Stock Market is a place where stocks are bought and sold. Stock is ownership in a company and it is sold in shares. If the corporation succeeds, its value may rise. This means that the value of its stock also rises If the corporation does not do well, it may lose value. This would drive the value of the stock down (Holt, 673). For much of the decade, the easy availability of credit had allowed many Americans to buy the automobiles, radios, vacuum cleaners, and other products rolling quickly off the nation’s assembly lines. By the end, of the decade, however, many consumers were reaching the limits of their credit. The pace of purchases slowed. Warehouses became filled with factory goods that no one could afford to buy. Investors also used credit to purchase stocks. This risky practice increased during the 1920s as the stock market rose sharply (Holt, 675). The Federal Reserve Board takes actions and sets policies to regulate the nation’s money supply in order to promote healthy economic activity. In the late 1920s, the Federal Reserve’s move was partly successful, at least at first. Borrowing from banks by brokers began to decrease, but it was replaced by money from a new source. Large American corporations began providing brokers with the cash to make margin loans to investors. As a result, the run-up of the stock market continued despite the Federal Reserve’s actions (Holt,