Life in America During the Great Depression

Life in America during the Great Depression

Jordan Hora

HI 202
Dr. Barske
MWF 1-1:50

The Great Depression began in 1929 and lasted until 1939. This was the deepest and longest-lasting economic downturn so far in history. In the United States, the Great Depression began soon after the stock market crash of October 1929, which sent Wall Street into a panic and wiped out millions of investors. Throughout the next several years, consumer spending and investment dropped, this caused steep declines in industrial output and unemployment levels began to rise as failing companies laid off workers. By 1933, the Great Depression had reached its lowest point, around 13 to 15 million Americans had lost their jobs and nearly half of the banks had failed as well. During the 1932 presidential election, Hoover did not stand a chance at reelection and Franklin D. Roosevelt won in a landslide. The Great Depression was caused by the stock market crash of 1929, which left Americans without jobs and wondering how President Roosevelt was going to fix this economic crisis. The stock market crashes on October 29, 1929 and the Great Depression begins. Much of the Stock Market crash can be blamed on over enthused and false expectations. Within the years leading up to 1929, the stock marker allowed the potential for making huge gains in wealth. People began to purchase shares with the expectations of making more money. As share prices began to rise, people then began to borrow money to invest in the stock market. The market got caught up in a speculative bubble. The shares kept rising and people expected them to keep doing so. Prices were not being driven by economic fundamentals but by the optimism of over enthused investors. Therefore, in October 1929, the shares were grossly overvalued. When companies began to post disappointing results, some of the investors thought this would be a good time to cash in on their profits. This initial selling caused a fall in

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