GREAT DEPRESSION!
- Birth rates went down, suicide rates went up, people had to cancel their weddings
- WPA (works progress association) helped people find jobs during the Great Depression.
- Banks failed because people began to lose their savings due to the deposits in the bank. They became more cautious on who they gave loans out to.
- Roosevelt started the Food Stamps program in 1939.
- Food Stamps helped those who were needy get food for their family
- Many people couldn’t transfer goods and tariffs increased rapidly that had a long lasting impact on the Depression
- The crash happened over a five day period
Causes:
- Stock Market Crash
- Bank Failures
- Reduction in purchasing across the board
- Drought Conditions
- American economic policy with Europe
- 1/3 of the non farmer workforce lost jobs
- Many people were investing in stocks, 2 months after that thursday investors had lost more than $4 billion.
- The initial crash occurred on Thursday October 24, 1929
- People lost their savings from banks
- Banks were unable to create as many loans
Impact on the lives of people in the US:
- Homelessness
- Unemployment
- Hoovervilles (towns of shacks made by homeless people)
- Starvation and illness
What did the government do:
- Tried to create jobs such as the new deal where they paid men to build roads and schools
- Roosevelt created the Agricultural Adjustment Act which paid farmers not to sell their products
- A typical ration from the government included flour, pork, split peas, corn meal, molasses, and cocoa. It provided for only about half of a person’s nutritional needs.
What long lasting impact did the Great Depression have on the US and the world?
- The financial world went to crap. People weren’t buying as much stuff, people weren’t taking out loans and a lot of people didn’t have jobs
- Started Social security system
- The government set up a system that drained on taxpayer money
- Families were separated
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