Life During the Great Depression
Essay by review • March 7, 2011 • Essay • 379 Words (2 Pages) • 1,585 Views
Life during the Great Depression
The Great Depression was a recession that had affected every globalizing country. It started in 1929 with the Stock Market Crash, and it lasted throughout the 1930s. It caused many economic downturns. Unemployment and homelessness increased dramatically. Construction halted; farmers suffered and didn't make a profit; mining and logging declined because there was no demand for it.
The cause of the Great Depression are said to be many. But here are a few reasons such as the stock market crash in October 1929. This was said to be the beginning, but economist believed that this would have caused just another recession. Many countries debts were raised as well as its citizen's debts. The central bank saw this increasing debt in each country so they decide to pull the paper money out of the system by any means necessary, and they reduced the production of paper money. Businesses could renew their loans, and new business couldn't get loans at all to invest in their businesses.
Life during the Great Depression was horrible. When the stock market crashed, millions of people lost their jobs. They were not prepared because they thought the economy doing great. Many had huge debt because the purchased valuable asset with credit. In other words, they lived beyond their means. They were forced form their homes because they couldn't pay their mortgage. Homelessness and unemployment increased. Farmers didn't profit from their crops because demand fell. Basically people with a family were living in one room houses. There were huge soup and bread lines because people were homeless.
Inflation is a warning sign of depression because prices are usually higher than what they should be meaning that the currency is losing value. Rising debt could also be a warning sign of depression because people purchased things on credit, and they were not able to pay because they lost their jobs. The increase on loans purchases, and the bank probably didn't have the money to back.
I can protect myself from a depression by making sure that my family and I are out of debt because it could get crucial. I could purchase gold or silver
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