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Thesis
The over production of products in the U.S. had a small effect. However, the Great Depression was largely caused by the Federal Reserve and the over spending of money in the stock market, and too many loans given out to people. Therefore the Great Depression was caused by the People and the Government, not only industrial production owners. -
Stock Market crash of 1929
The stock market crash had devistated the economy leading to about $40 billion dollars lost in stocks. By the time the great deprecion started we were still very much effected by the stock crash and still hadnt bounced back. -
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Reduction of spending across the board
people stopped spending money on things because of fear of another economic problem. becuase of this people lost their jobs becuase to much product was being produced. The unemployment rate rose above 25% which meant, of course, even less spending to help alleviate the economic situation. -
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The Great Depression
The most econonomically troubling time in American history. This led to The New Deal, and helped unify us as a nation going into WWII. -
Hawley-Smoot Tariff (1930)
Raised used US tariffs on over 20000 imported goods to record levels. -
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Bank Failures Across The US
Bank Failures throughout the 1930s. This was the failure of over 9,000 banks. Bank Deposits were uninsured and thus as banks failed people simply lost their savings. Surviving banks unsure of the economic situation and concerned for the own survival stopped being as willing to create new loans. -
New York Bank of the United States Fails
The bank had more than $200 million in deposits. This made it the largedst single bank failure in American history. -
Federal Home Loan Bank Act (1932)
This was enacted July 22, 1932, is a United States federal law passed under President Herbert Hoover in order to lower the cost of home ownership. -
Emergency Banking Bill
The Emergency Banking Act (March 9, 1933), was an act passed by the United States Congress in 1933 in an attempt to stabilize the banking system. -
Glass-Steagal Act of 1933
Also known as the Banking Act of 1933 (48 Stat. 162), was passed by Congress in 1933 and prohibits commercial banks from engaging in the investment business. It was enacted as an emergency response to the failure of nearly 5,000 banks during the Great Depression. -
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Drought Conditions
The drought that happened in Mississippi Vally was so devistating that no one could pay taxes and actualy had to sell their farms for no profit to them. This was nicknamed the dust bowl. -
Banking Act of 1935
The Banking Act of 1935, which President Roosevelt signed on August 23, completed the restructuring of the Federal Reserve and financial system begun during the Hoover administration and continued during the Roosevelt administration. -
Conclusion
The people invested too much in the economy, being careless as well as the government during this period. The oil shortage in the 1970's was similar in that the government set down boundaries and changed policies. As a result, the government put a cap on gas prices, and drove thousands of people out of business and work. This could also be compared to the recession in the 1890's. Because of the removal of the Sherman Silver Purchase Act, silver prices dropped and put thousands out of work.
