Although the United Sates had experienced several depression before, none had been as severe nor as long-lasting before October 24, 1929, “Black Thursday”, a world-wide economic disintegration, “The Great Depression”. At first many economists believed it to be a “mild bump” (2010, Allida Black; June Hopkins), in no case, worse than the recession after World War I, but to their surprise’s number rapidly worsened, and the stock market fell dramatically 12.8% (2010, Allida Black; June Hopkins).By the spring of 1933, President Franklin Delano Roosevelt inauguration, the impact was visible across the country. Nearly 25% (2010, Allida Black; June Hopkins) of the labor force were unemployed, the unemployment had risen from an 8 to an 15 million (2010, Allida Black; June Hopkins), conjointly with the gross national product which had decreased from $103.8 billion to $55.7 billion (2010, Allida Black; June Hopkins). With reduced prices and reduced output, resulted in lower wages, rents, profits, fames, and factories, homes were lost to foreclosure or abandonment, and the people went hungry. A total of 12,830,000 people were unemployed (Leuchtenburg, William E.) (McElvaine, Robert S.). However, the actual cause of the Great Depression is much more complicated than just the crash of the stock market.
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A number of historians and economists often disagree about the exact causes of the depression (Leuchtenburg, William E.). All throughout the 1930, consumer spending continued to decline, meaning businesses cut jobs, thereby increasing unemployment, schools budgets reduced along with school days and the school year (Leuchtenburg, William E.) (McElvaine, Robert S.). Furthermore, the server drought across America reduced a large amount of agricultural jobs. Many countries worldwide were affected, displacements of the work force and community’s caused families split up or migrate elsewhere in search of work. While the country continued to sink deeper and deeper into the Depression, residents, those who lost their homes, began to build ‘Hoovervilles’ or ‘shantytowns’, built of packing scraps of crates, abandoned cars, or anything they found to be useful (McElvaine, Robert S.) (Leuchtenburg, William E.). Clusters of families would roam the rails as hobos in search for work, but in actuality, there was no place to go that offered relief from the Great Depression. Pending the time Hebert Hoover was president, during the Great Depression Hebert tried to institute reforms in an attempt to stimulate the economy, focusing on helping states and private business anticipating to provide relief (2003, MacNamara, John). Hoover believed that the federal government should have not been directly invalided in economic affairs, this would not fix prices or change the value of the currency. March 4, 1933, immediately after Franklin Roosevelt became president, he instituted the first New Deal (2003, MacNamara, John). In the first hundred days of his term, Roosevelt pushed through Congress a legislation designed to lift the nation out of the depression. Declaring a “banking holiday”, ending the runs on banks and creating a new federal program that would be administered through the “alphabet agencies”. (2003 MacNamara, John). These agencies focused on restoring society, such as, the (AAA) Agricultural Adjustment Administration, stabilizing farm prices, allowing the farms to be saved (2009, Harold L. Cole, Wall Street Journal). The (CCC) Civilian Conservation Corps provided jobs to the unemployed while improving the environment (2009, Harold L. Cole, Wall Street Journal). (TVA) Tennessee
A number of historians and economists often disagree about the exact causes of the depression (Leuchtenburg, William E.). All throughout the 1930, consumer spending continued to decline, meaning businesses cut jobs, thereby increasing unemployment, schools budgets reduced along with school days and the school year (Leuchtenburg, William E.) (McElvaine, Robert S.). Furthermore, the server drought across America reduced a large amount of agricultural jobs. Many countries worldwide were affected, displacements of the work force and community’s caused families split up or migrate elsewhere in search of work. While the country continued to sink deeper and deeper into the Depression, residents, those who lost their homes, began to build ‘Hoovervilles’ or ‘shantytowns’, built of packing scraps of crates, abandoned cars, or anything they found to be useful (McElvaine, Robert S.) (Leuchtenburg, William E.). Clusters of families would roam the rails as hobos in search for work, but in actuality, there was no place to go that offered relief from the Great Depression. Pending the time Hebert Hoover was president, during the Great Depression Hebert tried to institute reforms in an attempt to stimulate the economy, focusing on helping states and private business anticipating to provide relief (2003, MacNamara, John). Hoover believed that the federal government should have not been directly invalided in economic affairs, this would not fix prices or change the value of the currency. March 4, 1933, immediately after Franklin Roosevelt became president, he instituted the first New Deal (2003, MacNamara, John). In the first hundred days of his term, Roosevelt pushed through Congress a legislation designed to lift the nation out of the depression. Declaring a “banking holiday”, ending the runs on banks and creating a new federal program that would be administered through the “alphabet agencies”. (2003 MacNamara, John). These agencies focused on restoring society, such as, the (AAA) Agricultural Adjustment Administration, stabilizing farm prices, allowing the farms to be saved (2009, Harold L. Cole, Wall Street Journal). The (CCC) Civilian Conservation Corps provided jobs to the unemployed while improving the environment (2009, Harold L. Cole, Wall Street Journal). (TVA) Tennessee