**The Great Depression of 1929::
Causes of the Great Depression
Occurred on Black Tuesday, October 29, 1929. Two months later U.S had lost over 40 billion dollars. Approxamently one year later the stock market had been trying to make a come back but didnt not make a big enough one. Because of this it began the Great Depression.
Bank Failures:
In the 1930's 9,000 banks failed. Many people lost there bank deposits because deposit weren't uninsured. Banks that were making it through the situation were afraid of the situation and there personal survival so they were more strict about handing out loans.
Reduction and purchasing across the board:
During this time many people stopped purchasing or purchased fewer things. When this happend the production number was way low and the workforce was reduced. As people lost there jobs they could afford to pay for thing nor pay bills which led to there stuff being repossessed and unpaid for. As people stopped purchasing things many products were still being made. The unemployment rate rose to approximately 25%.
American economic policy with Europe:
In 1930 the government created the Smoot-Hawley tariff to protect american companies. This lead to high taxes to trade, therefore the trade rate between america and other foreign countries really slowed.
Banks and Businesses crashed during this time. When the stock marked crashed many people were worried and withdrew all the money from the banks. Not everyone could do this though because most banks put money and investments into the stock market. Many people lost their saving because the government couldn't afford to insure bank accounts. Between 1929-1932 the output of goods and services of businesses was almost half as much. one and four workers were without a job. approximately 90,000 business went bankrupt. Automobile and railroad enterprises were apart of this. Joseph P Kennedy and John F Kennedy were a few that did fine during this time because they sold their stocks.
http://americanhistory.about.com/od/greatdepression/tp/greatdepression.htm
http://en.wikipedia.org/wiki/Great_Depression
McDougal Littell AMERICANS reconstruction to the 21st century text book.
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