Great Depression

The Great Depression was a worldwide economic decline in 1930's. It was the most difficult and longest period of unemployment and low business activity in modern times. The Depression began in October 1929, when the stock values dropped very quickly. Many stockholders lost large amounts of money. Banks, factories, and stores closed and left millions of Americans jobless and penniless. Most families had to depend on charity to provide food.

When the Depression began Herbert Hoover was the President and in 1932 Franklin D. Roosevelt was elected President. Roosevelt's reforms gave the Government more power and helped ease the depression.

The Depression caused a very sharp decrease in world trade because each country raised taxes on imported goods trying to help their own industries. The depression caused some countries to change their type of government and their leader.

The stock market crash occurred

from 1925 to 1929. During this period the price of common stocks on the New York Stock Exchange more than doubled. When stock values rose it encouraged many people to buy stocks hoping to make large profits following the future price increases.

Black Thursday was Oct 24, 1929 when the stock values dropped. The Friday and Saturday after Black Thursday stock prices remained steady. On Monday stock prices fell once again. By Tuesday, October 29, the stockholders panicked and began to sell a record of 16,410,030 shares of stock.

Millions of Americans suffered from a disease caused by malnutrition. People lost their homes because they didn't have enough money to pay their mortgage.In1932 at least 200,000 young people and 25,000 families roamed through the country looking for food, clothing, shelter, and a job.

The Great Depression had many effects on the United States. It produced new laws that gave the government far more power than at any time in the history of our nation. It changed the American society's outlook toward life.