Great Depression

The great depression was a very horrible time for many Americans. Many people died of disease and many people lost their job and houses. How did this horrible time start?

Businesses boomed in the 1920's so people invested in risky stocks and deals. Banks made loans to people who wouldn't and couldn't pay the loans back. Businesses produced more products then they could sell and machines replaced many human workers. In 1929, the stock market crashed. Since the banks had made mistakes in investing and loaning money, over 5,000 banks failed in the next two years. Many other businesses also failed and went bankrupt. Over twelve million people lost their jobs. Other people were forced to work for less money. Some people worked for $0.10 an hour. Many people lost their whole life savings in one day when the stock market crashed.

In the 1932 at least 25,000 families were wondering in the country side trying to find food, clothing, shelter, and a job. Most people got food from welfare agencies or religious missions. Some people were so hungry that they found and ate food out of a garbage can. When people lost their homes would move in with a relative or they took cans and crates and built a house on the side of the road.

Roosevelt believed the Federal Government had the responsibility of ending the depression. He called Congress into a special session, now called the Hundred Days, to pass laws to relieve the Depression. Roosevelt called his program the New Deal.

The laws that were established had three main purposes. First, they provided relief for the needy. Second, they aided nationwide recovery by providing jobs and encouraging businesses. Third, the laws tried to reform businesses and government so that such a severe depression would never happen in the U.S.A. again.

Even though the Great Depression was over there were many affects from the depression left. One, the government made new laws. Second, the depression changed the attitudes of many American people. Third, the government took control of banks and the stock market. Fourth, the government earned more power so that they could provide for the needy. The government now provides hospital and medical services for the needy. The Great Depression was a very horrible and tough time but America survived it!