The great depression of 1929 to 1933
The great depression was the most horrifying and terrifying economic downfall which has ever happened in world history. The depression happened between 1929 and 1933. The great depression initially started after the stock market crash in 1929. To be precise, the wealthy merchants and investors lost billions of dollars after the stock market crash in 1929. On the other hand, the average man was suffering from abject poverty with less hope of life due to a higher rate of unemployment. The 1929 stock market crash has always been the worst economic fall that has ever happened in the world.
Wall Street was significantly affected to a level that it lost billions of dollars and several investors. Consumer investment and spending dropped and, this led to low industrial production and a higher unemployment rate because a lot of industries were sacking off their employees. By 1933, almost 15 million American citizens were unemployed and, every bank and corporation had failed. The low industrial production rate and high rate of unemployment resulted in high stock prices than actual price values. Moreover, workers received low salaries. The consumer debt was also escalating and, the agricultural sector was at its knees due to the falling food prices and drought. The banks also experienced large loans that could not be settled.
After President Roosevelt was sworn in the office in 1933, he strived so hard to revive the economy of the United States. The president was majorly focused on reducing the level of unemployment and providing aid to those who were suffering in abject poverty. For the first years of his ruling, President Roosevelt’s government organized many programs and experimental projects termed as a new deal. Roosevelt closed all the banks to prevent the withdrawal of money by the customers. He then worked with corporations together with the banks until the gross domestic product started escalating but at a low rate. Although, many of the United States’ investors and industries felt that Roosevelt’s new deal brought the economy of the United States to its knees, which was not the case because he reduced the gap between the rich and the poor. The federal Acts, which were enacted during President Roosevelt’s government, were targeted at improving the overall living standard of the United States people.