• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

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

Extracts from this document...

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.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our GCSE USA 1919-1941 section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related GCSE USA 1919-1941 essays

  1. Explain the Causes and Effects of the Great Depression.

    As a result, the market became oversupplied with good that couldn't be sold. To solve the problem, businesses began selling their products through installment credit. The concept of 'paying later' appealed to many Americans who couldn't afford buying consumer goods otherwise.

  2. Describe the effects of the Wall Street crash on the USA by 1932.

    Farming also fell because the cost of transporting animals was more than the cost of animals themselves. People therefore became unemployed because companies could not afford to pay them wages. Also, many people had borrowed money in order to buy shares that were now worthless.

  1. To what extent did America roar in the 1920s?

    Small investors panicked and rushed to sell their own shares. This meant that prices began to fall as more and more people started to sell their shares. On 29th October, over 16 million shares were traded in the worst day in the history of the New York Stock Market.

  2. (Q1) Describe some of the key features of Americn society in the 1920's?

    Fewer new houses were being built, and sales of motorcars declined. Industrial workers' wages were not rising fast enough for them to buy (even on the never - never) all the consumer durables the factories could produce. American farmers had over - expanded their production of food: food prices went

  1. Explain how both the long-term and the short-term causes contributed to the great depression ...

    For the rich people and the large trusts this was very good because they would continue to get richer. The downside to the policy was the definite difference between rich and poor. The government did nothing to help the poor people who needed it whilst they did help the large trusts by methods such as the McCumber tariffs.

  2. The Wall Street crash, the great depression and its how it affected the lives ...

    So, in conclusion there were very large and yet subtle problems with the American economy but which the people were not able to notice and respond to in time. During the day of Thursday 24th 1929 13 million were sold and on Tuesday the 29th 16 and a half million

  1. 'The causes and effects of the great depression caused equal suffering to all of ...

    The source suggests that those in the south were unaware of the true situation during the depressions as they were not hit to the same level if hit at all therefore this disagrees with the hypothesis title because it states that not every1 experienced the same, therefore the source is fairly useful.

  2. The Great Depression - "From Boom To Bust" - How America went from massive ...

    Many of the people speculating on the stockmarket did often have no experience. Many of these investors bought shares 'on the margin' where they were using borrowed money to buy shares. Between 1927 and 1929 American stockbrokers increased the amounts they had borrowed from $3.5 million to $8.5 million.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work