the great depression

the great depression

The Great Depression refers to the time period in history of approximately 1929 through 1939 during which there was a severe economic crisis. It is speculated that it started with the large stock market crash in October 1929. As a result of the crash, several people and industries lost sizable portions of their wealth and assets with no hope for recovering them. This led to the closure of multiple businesses and companies. With the failings of so many industries, many found themselves unable to work. The singular market crashing event managed to have a deep impact upon society at large.

The economic crisis was not limited to those inside the United States. Rather, its effects were felt in other countries in the form of reduced profit margins, decreased trade, reduced tax income. A variety of industries worldwide felt the impact of this financial downturn. There was almost no demand for construction which led to less need for mining and the labor associated with it. The farming industry also fell into the spiral. Some farmers were not able to afford to feed their livestock, others were unable to harvest their crops and for those that managed to harvest their crops, they found the prices they received for them were not adequate to support their endeavors.

As a result, unemployment was very high and multitudes of people starved to death.The crime rates increased as well. It was not until President Franklin D. Roosevelt intervened with his New Deal that the effects of the depression were reversed. The President enacted several safety measures for the banking industry targeted at preventing future occurrences of this magnitude. The changes took a long while to make a difference and it is speculated that the start of arms production for World War II assisted the United States with its financial recovery.

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