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The great depression - Mayookha

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The great depression - Mayookha
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  • The great depression was one of the worst times in American history. The entire country underwent an economic collapse started in 1929. It made life hard for everyone.
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  • The period before the great depression is often called the roaring twenties. During this time there were small recessions. This means the economy wasn't growing.
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  • Stock Market Crash : Millions lose everything.
  • The stock market crash had many immediate effects. Companies stopped making things. They realized that they had made too much stuff.
  • Closed
  • Companies and banks lost a lot of their money. Millions of people lost their jobs. Families lost their homes. Many people found themselves needing assistance from soup kitchens and homeless shelters. The economic crisis took almost a year to get better. It affected people all across the country.
  • In 1933, 25% of all Americans did not have jobs. Thousand of banks also were forced to close. People who had money in those banks lost all their savings. Times were very hard for everyone.
  • People were used to there being little recessions. Everyone knew that most of the time the recession stops and the economy starts growing again. At first, this is what people thought was happening on 1929. They assumed that everything would fix itself. But this time, the economy kept going into recession. People got really worried. Everyone who had money in the stock market pulled it out at the same time. The great depression started when the stock market crashed in 1929.
  • The major event that helped the economy was the World War 2. It is hard to believe that a war helped the economy the most. When the U.S. went to war, there were many jobs that were created.
  • People would not be able to buy all of it, and then the companies would be stuck with the leftovers! Because companies stopped making things, they didn't need as many workers. Companies started to layoff employees that they no longer needed. Many Americans all of a sudden did not have any jobs. Losing your job means losing your income. Suddenly a lot of people didn't have money to buy goods. Companies started to make even fewer goods. They had to fire even more people. It created a vicious cycle. Things just kept getting worse and worse.
  • Today, The Great Depression is still the worst economic crisis in the history of America. It affected everyone including businesses, workers and banks.
  • Eventually, America started recover from the Great Depression. It was not easy, and it took many years. There were couple of reasons for the turnaround. The first reason was The New Deal. The New Deal was a set of experiments and programs created by President Franklin Roosevelt. he tried to create more jobs for people. His programs helped to turn around the economy little by little.
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  • Factories had to make war supplies., which meant that they needed to hire people again. Fewer people were homeless. People had money again which they could spend on goods. The economy started to improve again. The worst part of the Great Depression was over.
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  • Many lessons were learned from the Great Depression. Banks now have to protect your money so savings won't be lost. There are also different rules for the stock market so that it won't crash. Hopefully these lessons will help prevent something like the Great Depression from happening again.
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