The Great Depression: 11 Years of Life Lost to Suffering, Despair, and Poverty.

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The Great Depression: 11 Years of Life Lost to Suffering, Despair, and Poverty.

 

Word Count: 2,119

     “Brokers screamed out their orders to sell shares. They pushed each other out of the way, losing glasses and shoes in the chaos. One newspaper journalist wrote, “I heard it – and I can still hear it…the sound of running feet, the sound of fear.”

On Thursday October 24th almost at once stockbrokers were trying desperately to sell thousands and thousands of stocks. People were in panic as their “paper wealth” was quickly disappearing. Most at that moment felt a great wave of terror, but even then, nobody was prepared to face the next 11 years; nobody had the slightest idea of what the Great Depression was going to do to the country, to the world. The Great Depression began in September 1929 when unexpectedly, the stock market crashed and the prices began to rapidly fall. This crash made people feel alarmed and scared. People were blinded by panic with the prices falling and the banks closing so quickly that they had no time to realize and think about what could be done to resolve the problem. As years went by, people opened their eyes and understood how serious and appalling The Great Depression was but the damage had already been done and was continuing to spread all over the U.S. Now the nation had to recover from it’s economic problems, but the people would only patch up the economy in 1940 and the people would have to suffer for many years only to then to endure World War II (1939-1945). “The Great Depression put the American people through many difficult tasks. Millions lost their jobs and couldn’t support their families. Without jobs people had to move out of their houses and live outside or in “Hoovervilles”. And most people were willing to work for food. Many families split apart in search of jobs and food and most of the time they never saw each other again. There were many different causes that started the Great Depression. But Margin buying was a significant cause of the Great Depression.

           As World War I ended, most Americans were looking for a better life.  Factories discontinued making supplies for war and instead turned to providing consumer goods to the public that would make life easier and more comfortable for affordable prices. Electricity was now supplied to many towns and cities. People quickly shifted from iceboxes to electric refrigerators, and from carpet sweepers to electric vacuum cleaners. Before the 1920’s it was almost impossible to afford an automobile unless you were wealthy, however during the “Roaring 20’s” almost everybody owned this vehicle and the automobile industry increased the demand for steel, rubber, and oil.  People were living each day without fear or worry. The 1920’s brought with it a new life style. Because of the new appliances, many women spent more time outside of their homes, enjoying life or working. By the end of the decade, women made up more than a quarter of the American workforce. “To encourage consumers to buy goods, stores started offering credit (an arrangement in which a seller trusts a buyer to repay part of an item’s purchase price over time). Customers could take home a product after paying just part of the purchase price in cash. They made monthly payments until the item was paid for. By 1929, three of every four cars were brought on credit, and so were half of all major appliances such as washing machines and radios.” 

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Many Americans invested heavily into the stock market and depended on it very much. A poor man could invest into the stock market one evening and wake up in the morning as a wealthy person. “From 1826 to 1929, the market indices moved up nearly 400%. Investors frequently talked about the great wealth that could be made in the stock market. Relaxed credit terms from banks and stock brokers fueled the buying frenzy”. “In September 1929 the stock market came crashing down. In panic people were selling off their stocks all at the same time and nobody wanted to buy.” There could ...

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