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The Great Depression Essay, Research Paper


The year of 1929 began a time period of horror in America. It was the

beginning of the great depression. A time in which many lost their

jobs,became homeless,and went hungry. Many people had to live off the

nutrition of weeds or some worked fifty – five hours and only earned seventy -

five cents. The cause of the depression was the stock market crash of 1929

known to investors as Black Tuesday. Black Tuesday is said to be the most

shocking financial event in the history of the united states. Not only did the

stock market prices drop drastically but the business world was brought down

with it. Inflation also rose because of the crash.

The crash that occurred on October of 1929 caused Americans to lose

Thirty billion dollars,and the American dollar value was 90% less than it was

prior to October of 1929. Wholesale and retail food prices dropped 40% and

farm prices dropped over 60%. About four million families were left

unemployed and on relief support only receiving fifteen dollars a month.

Because of the crash the government was required to set new regulations

regarding stock market trade. The reason for this was to attempt to prevent

another stock market crash from happening in the future.

The depression brought about many problems not only did people have to

worry about unemployment they also had to worry about crime. Many

Americans tried to get easy money by taking part in

robberies,kidnappings,and murders. In 1935 criminals out numbered

carpenters four to one, grocers six to one, and doctors twenty to one. In the

mid west, crooks with shot guns and Tommy Gun were a common thing. In

large cities the criminals were making money off of extortion,prositution and

auto theft.



Herbert Hoover became president

Stock market crash begins on October 24

investors call October 29 Black Tuesday

Losses for the month are sixteen billion

congress passes Agricultural Marketing Act to support farmers until they can

get on their feet


By February, Federal Reserve cut prime interest rate 6% to 4%

The smoot-Hawley Tariff passes on June 17

Democrats gain in congressional elections but still don?t have majority

The GNP fails 9.4% and unemployment rate climbs 3.2% to 8.7%


A second banking panic occurs in the spring

The GNP falls another 8.5%

Unemployment rises to 15.9%


This year and next year are the worst of the depression

GNP falls a record 13.4%

Unemployment falls another 23.6%

Congress creates the reconstruction finance corporation

Congress passes the federal home loan bank act

Congress passes the glass steagall act of 1932


Roosevelt inaugurated

Third banking panic occurs

Congress passes the Emergency Banking Bill,The farm credit Act,and

National Industrial Recovery Act


Gnp rises 7.7%

Unemployment falls 21.7%


GNP rises 8.1%

Unemployment falls 20.1%


GNP rises 14.1%

Unemployment falls to 16.9%

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