Great Depression and how it Affected America
The great depression was, and still is to this day, one of the worst economic disasters to affect the world in all of history. The great depression was caused by a few things. One of the leading reasons that led to the great depression was the stock market crash of 1929. The stock market crash of 1929 caused millions of investors and even business to lose a ridiculous amount of money.
The impact of the stock market crash caused severely hurt businesses. This led to business not having the money to keep up with their costs. Businesses began to slow down the production of consumer products. On top of slowing down their production of products, businesses were required to fire a large portion of their workforce. Out of those who were fired, the few workers that were left were not safe from the effects of the great depression. The worker’s wages were cut and they lost a lot of their buying power. Americans all over the United States could not keep up with their monthly costs began to fall into debt. Everyone began to look to the president, Herbert Hoover, for answers as to how they will help America out of the great depression.
Times and times again the people were promised that the crisis would be over soon enough and it just needed to run its course. Over the span of three years, the people’s trust in what the president was saying began to dwindle. By 1931, more than six million Americans were jobless and looking for work. This number only grew over the years. As time went on, the American people were losing their faith in the banks being able to fix their situation. Massive amounts of investors stormed into the banks and demanded that they get their deposits in cash. The banks did not have the money to be able to supply the people demands. Banks were forced to liquidate all of their loans to be able to have enough money to pay everyone who came into the banks. Banks had to deal with these bank runs four times before thousands of banks were ordered to shut down due to the lack of funds. To try and help banks hire employees back, the Hoover administration gave loans to banks. In March 1933, Franklin D. Roosevelt was elected into the presidency.