Stocks The Great Depression was blamed on
Stocks Drop The Great Depression began when the stocks had begun to drop on October 29, 1929, which was known as “Black Tuesday.
” After that day America quickly dove into The Great Depression as billions of dollars were sent down the drain and investors lost all their stocks. A few things had lead to the crash such as the unemployment rate slowly rising, low wages, rising debt, people weren’t able to pay off their loans, and industrial production slowing down causing stocks to lose their value. By the time 1933 had come, an estimated 15 million people were unemployed which was around 30 percent of America’s total workforce and almost half of America’s banks had been closed down.
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Life In Hoovervilles Hoovervilles were named after the current president at the time, President Hoover because The Great Depression was blamed on him by the many Americans who were suffering when he didn’t give them relief. Life in Hoovervilles or shanty towns were rough, they were temporary shelters for people who had nowhere else to go, they were constructed out of loose materials such as cardboard and planks of would people could find. The residents usually had no main source of income so they would beg and use local charities to get food. By the early 1940’s America begun to climb out of The Great Depression and Hoovervilles slowly started to disappear because people could support themselves again. Getting Out of The Great Depression When Franklin D. Roosevelt, more commonly known as FDR was elected in he put in a lot of effort to help get America out of The Great Depression unlike previous President Hoover. FDR quickly ordered banks to close on March 9th for four days, that organized banks and permanently shut down the banks that were unable to pay their debts owed.
FDR pushed Americans to put their saving back into banks and before the month had ended the banks had begun to reestablish themselves. Within the 100 days FDR was in office he passed an act known as The New Deal, to balance agricultural and industrial production, encourage recovery, and establish work, he also looked to rebuild the financial system by making the Federal Deposit Insurance Corporation to defend depositors’ accounts and made the Securities and Exchange Commission to balance the stock market to help avoid another crash that caused The Great Depression. When World War II started, it helped provide jobs as well because America needed to quickly produce things needed for the war and military jobs were needed to be filled.