Overview
When the stock market crashed on October 24, 1929, it marked the beginning of the the most severe economic crisis in United States history which became known as the Great Depression. During this time around 50% of American citizens were either unemployed or underemployed meaning that they had received reduced pay or reduced hours. Because of this many families did not have a sufficient amount of food to live on or money to pay their bills so they went hungry and some even lost their homes. Almost half of Americas banks failed and people lost all their savings. The Great Depression brought sadness and fear to citizens and made them lose faith in the American economy.
Herbert Hoover was president at the beginning of the depression and was blamed for the Great Depression lasting so long. In 1932 he ran for reelection against Franklin D. Roosevelt but lost. Roosevelt promised a "New Deal" that would help to end this crisis.
When the stock market crashed on October 24, 1929, it marked the beginning of the the most severe economic crisis in United States history which became known as the Great Depression. During this time around 50% of American citizens were either unemployed or underemployed meaning that they had received reduced pay or reduced hours. Because of this many families did not have a sufficient amount of food to live on or money to pay their bills so they went hungry and some even lost their homes. Almost half of Americas banks failed and people lost all their savings. The Great Depression brought sadness and fear to citizens and made them lose faith in the American economy.
Herbert Hoover was president at the beginning of the depression and was blamed for the Great Depression lasting so long. In 1932 he ran for reelection against Franklin D. Roosevelt but lost. Roosevelt promised a "New Deal" that would help to end this crisis.
Timeline of Major Events
- 1929- Black Thursday: The stock market crashed and people became panicked. The value of stocks plummeted and many people lost large sums of money.
- 1930- The Dust Bowl: Severe drought and very dry conditions began to destroy farmers land which decreased the output of crops and input of money for farmers. High winds caused many deaths from people inhaling too much air.
- 1931- Riots: Citizens broke out in riots due to a lack of food.
- 1932- Reconstruction: Stocks reached an all time low. Money was lent to banks and other companies from the government after the Reconstruction Finance Corporation was established.
- 1933- New President: Franklin D. Roosevelt became president. Unemployment levels reached their peak. This was the beginning of the First New Deal. The Civilian Conservation Corp (CCC) which gave jobs to people in federal and state parks, the Federal Deposit Insurance Corp (FDIC) which ensured savings deposits for citizens, and the Civil Works Administration (CWA) which helped unemployed workers, were established.
- 1935- Second New Deal: The Works Progress Administration (WPA) was created. It provided money to help create jobs making schools, roads, and other public buildings. The Wagner Act was passed which prevented unfair business practices. The Social Security Act was passed which provided help to the elderly, the disabled, and the unemployed. This was the beginning of the Second New Deal.
- 1936- Reelected: FDR was reelected to a 2nd term.
- 1938- Stimulation: FDR asked for $3.75 billion to stimulate the economy that was still troubled.
- 1940- Reelected: FDR was reelected to a 3rd term.
- 1941- End of the Depression: When WWll started the American economy was given a boost by fighting countries asking them to make supplies. Then America entered the war and it produced lots of jobs in factories making the necessary supplies for war.