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The great depression in the USA was at its worst from 1929-1932 Explain the effects of the depression on the people Of America in these years

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Introduction

Jenny Leicester The great depression in the USA was at its worst from 1929-1932 Explain the effects of the depression on the people Of America in these years During the 1920s the American prosperity had been thriving with new goods coming on the market and with the USA ready supply of raw materials they were able to sold at affordable prices new businesses were being set up through the aid of bank loans depending on the stock market however in the late 1920s the US economy began suffering from over production of farm goods (which were in competition with European farmers) and new technology which people were not ready to replace this led to the reduced production of consumer goods meaning that more people were becoming unemployed resulting in there being less money to spend on consumer goods this spiral became known as the spiral of depression. The depression effected people through ways such as unemployment, homelessness, and farm workers who were possible hit the hardest, there was aid relief through charity and help and the Hoover Help. ...read more.

Middle

This meant that in the 1930s when 25% of people were unemployed in the North cities this was largely due to the problem caused by overproduction in which many people who had already became unemployed could not afford these new products, and the people who could afford them did not need to replace them as they already had them. Many Americans travelled for work prepared to do any type of job, these became known as hobos, and 0.25million Americans became homeless. The Lack of new goods needed meant that the shares for these companies began to fall as in 1929 20 million Americans owned shares, some on a part pay basis, when the prices began to fall some investors began selling their shares this resulted in this trend being carried out by millions of others and eventually the wall street crash happened where 13 millions people tries to sell their shares on the 24th October made worse by the fact that on the 29th October 16million shares were sold. The results of this crash were massive as many people had invested in the shares became bankrupt, many smaller banks went bust causing thousands of people to loose their savings, and more people became unemployed through lack of demand for products. ...read more.

Conclusion

relief effort by providing money and helping in soup kitchens etc, Hoover eventually signed an Emergency relief and reconstruction act in 1932, cutting taxes and adding tariffs on imports and enabling money to be given to relief efforts for example $4000m were given to create jobs in construction, $300m to local states to give unemployed money and $1500m to business in trouble. The effects of the depression were largely apparent on the Americans as millions lost their jobs became homeless and grew deeper into poverty and with it depression this was all created by the spiral of depression in which the over production of goods created a loss of jobs and homes and lack of money, I think this could have been largely reduced if the republic society hadn't have lived on a policy of laissez-faire and had a social security policy in place as it would have meant that when the people initially began loosing their jobs they could have continued living in their homes and would have had the money to continue buying goods such as crops which would have meant that over production didn't hit America so hard. ...read more.

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