Great Depression Essay, Research Paper

The year of 1929 began a time period of horror in America. It was the

beginning of the great depression. A time in which many lost their jobs became

homeless, and went hungry. Many people had to live off the nutrition of weeds or

some worked fifty – five hours and only earned seventy – five cents. The cause

of the depression was the stock market crash of 1929 known to investors as Black

Tuesday. Black Tuesday is said to be the most shocking financial event in the

history of the united states. Not only did the stock market prices drop

drastically but the business world was brought down with it. Inflation also rose

because of the crash. The crash that occurred on October of 1929 caused

Americans to lose Thirty billion dollars and the American dollar value was 90%

less than it was prior to October of 1929. Wholesale and retail food prices

dropped 40% and farm prices dropped over 60%. About four million families were

left unemployed and on relief support only receiving fifteen dollars a month.

Because of the crash the government was required to set new regulations

regarding stock market trade. The reason for this was to attempt to prevent

another stock market crash from happening in the future. The depression brought

about many problems not only did people have to worry about unemployment they

also had to worry about crime. Many Americans tried to get easy money by taking

part in robberies kidnappings and murders. In 1935 criminals out numbered

carpenters four to one, grocers six to one, and doctors twenty to one. In the

mid west, crooks with shot guns and Tommy Gun were a common thing. In large

cities the criminals were making money off of extortion prostitution and auto

theft. GREAT DEPRESSION TIMELINE 1929 Herbert Hoover became president Stock

market crash begins on October 24 investors call October 29 Black Tuesday Losses

for the month are sixteen billion congress passes Agricultural Marketing Act to

support farmers until they can get on their feet 1930 By February, Federal

Reserve cut prime interest rate 6% to 4% The smoot-Hawley Tariff passes on June

17 Democrats gain in congressional elections but still don?t have majority The

GNP fails 9.4% and unemployment rate climbs 3.2% to 8.7% 1931 A second banking

panic occurs in the spring The GNP falls another 8.5% Unemployment rises to

15.9% 1932 This year and next year are the worst of the depression GNP falls a

record 13.4% Unemployment falls another 23.6% Congress creates the

reconstruction finance corporation Congress passes the federal home loan bank

act Congress passes the glass steagall act of 1932 1933 Roosevelt inaugurated

Third banking panic occurs Congress passes the Emergency Banking Bill,The farm

credit Act,and National Industrial Recovery Act 1934 Gnp rises 7.7% Unemployment

falls 21.7% 1935 GNP rises 8.1% Unemployment falls 20.1% 1936 GNP rises 14.1%

Unemployment falls to 16.9%