Adorable animal families that will make you "aww" The Great Depression is a common term for the social and economic situation in the United States US after a dramatic financial disaster in
The Great Depression In Octoberonly months after Hoover took office, the stock market crashedthe average value of 50 leading stocks falling by almost half in two months. Despite occasional rallies, the slide persisted untilwhen stock averages were barely a fourth of what they had been in Industrial production soon followed the stock market, giving rise to the worst unemployment the country had ever seen.
By at least a quarter of the work force was unemployed. Adjusted for deflation, salaries had fallen by 40 percent and industrial wages by 60 percent. People gathering on the steps of the building across from the New York Stock Exchange on Black Thursday, October 24,the start of the stock market crash in the United States.
AP The causes of the Great Depression were many and various. Agriculture had collapsed in and was a continuing source of weakness.
Because of poor regulatory policies, many banks were overextended. Wages had not kept up with profits, and by the late s consumers were reaching the limits of their ability to borrow and spend. Production had already begun to decline and unemployment to rise before the crash.
The crash, which was inevitable since stock prices were much in excess of real value, greatly accelerated every bad tendency, destroying the confidence of investors and consumers alike.
Hoover met the crisis energetically, in contrast to earlier administrations, which had done little to cope with panics except reduce government spending.
He extracted promises from manufacturers to maintain production. He signed legislation providing generous additional sums for public works. He also signed the infamous Smoot—Hawley Tariff Act ofwhich raised duties to an average level of 50 percent. These steps failed to ease the depression, however, while the tariff helped to export it.
International trade had never recovered from World War I. Europe still depended on American sales and investments for income and on American loans to maintain the complicated structure of debt payments and reparations erected in the s.
After the crash Americans stopped investing in Europe, and the tariff deprived foreigners of their American markets. Foreign nations struck back with tariffs of their own, and all suffered from the resulting anarchy. In the elections the Democratic Party won control of the House of Representatives and, in combination with liberal Republicans, the Senate as well.
Soon afterward a slight rise in production and employment made it seem that the worst of the depression was over. Then, in the spring ofanother crisis erupted. The weakening western European economy brought down a major bank in Viennaand Germany defaulted on its reparations payments.
Hoover proposed a one-year moratorium on reparations and war-debt payments, but, even though the moratorium was adopted, it was too little too late. In the resulting financial panic most European governments went off the gold standard and devalued their currencies, thus destroying the exchange system, with devastating effects upon trade.
Europeans withdrew gold from American banks, leading the banks to call in their loans to American businesses. A cascade of bankruptcies ensued, bank customers collapsing first and after them the banks.
Hoover tried hard to stabilize the economy. He persuaded Congress to establish a Reconstruction Finance Corporation to lend funds to banks, railroads, insurance companies, and other institutions.
At the same time, in Januarynew capital was arranged for federal land banks. The Glass—Steagall Act provided gold to meet foreign withdrawals and liberalized Federal Reserve credit. But these measures failed to promote recovery or to arrest the rising tide of unemployment.
Hoover, whose administrative abilities had masked severe political shortcomings, made things worse by offering negative leadership to the nation.
His public addresses were conspicuously lacking in candor. He vetoed measures for direct federal relief, despite the fact that local governments and private charities, the traditional sources for welfare, were clearly incapable of providing adequate aid for the ever-rising numbers of homeless and hungry.
When unemployed veterans refused to leave Washington after their request for immediate payment of approved bonuses was denied, Hoover sent out the army, which dispersed the protesters at bayonet point and burned down their makeshift quarters. Their candidate was Gov.
Franklin Delano Roosevelt of New York. He won the election by a large margin, and the Democrats won majorities in both branches of Congress.
Roosevelt New Deal pin, Life during the Great Depression – The Heart of the Matter Most characteristic of life during the Great Depression was the widening gap between the “haves” and “have-nots.” Unemployment rose from a shocking 5 million in to an almost unbelievable 13 million by the end of General Characteristics of the Renaissance "Renaissance" literally means "rebirth." It refers especially to the rebirth of learning that began in Italy in the fourteenth century, spread to the north, including England, by the sixteenth century, and ended in the north in the mid-seventeenth century (earlier in Italy).
The Great Depression brought changes to art in many ways. America finally had the war behind it. The country was booming and the majority had a carefree attitude.
People were accustom to their lives and were not prepared for what was about to happen in The new decade would be a time of great. Pre-Social Security Period. Traditional Sources of Economic Security. All peoples throughout all of human history have faced the uncertainties brought on by unemployment, illness, disability, death and old age.
In this famous photograph by Dorothea Lange, a destitute, thirty-two-year-old mother of seven captures the agonies of the Great Depression.
The Depression caused major political changes in America. Three years into the depression, President Herbert Hoover, widely blamed for not doing enough to combat the crisis, lost the election of to Franklin Delano Roosevelt in a landslide.
Roosevelt's economic recovery plan, the New Deal, instituted unprecedented programs for relief, recovery and reform, and brought .