The Great Depression
The stock market crash on October 30, 1929 sent the United States into the longest and most devastating economic disparity in its time. Consumers had less confidence in buying power and caused production to cut in half, while businesses were forced to fire workers. President Hoover failed to address the concern of the American population and the situation continued to get worse. Homelessness, starvation, and unemployment rose significantly. People began to take out their money from banks that had insufficient funds on hand and the banks had to take out loans. Hoover invested federal money in failing banks with the intent of jump starting businesses in order to rehire workers, but the idea failed. Hoover's defeat in the 1932 elections was inevitable mostly because of the Depression. The effects of the Depression soon began reaching Europe and eventually would instigate the rise of extremist political groups such as Hilter's Nazi party in Germany. The second president to attempt to rebuild America, Franklin Delano Roosevelt, relied heavily on the creation of federal institutions, which were called "New Deal Programs". During his first 100 days in office, Roosevelt created the FDIC to help stabilize banks and the SEC to control the stock market in order to prevent another great crash. Many of the new deal programs were put in place in order to restore confidence among agricultural and industrial businesses and to put people back to work. GDP began to rise steadily over the years and by 1939, the United States was finally making a recovery from the stock market crash a decade earlier. World War II stimulated much of the American industry and consequently ended the Great Depression.
Header images retrieved from http://www.history.com/photos/soup-kitchens-and-bread-lines on 08/24/2013.
Times Square Breadline image retrieved from http://www.history.com/images/media/slideshow/soup-kitchens-and-bread-lines/unemployed-in-line-for-rations.jpg on 08/24/2013.
Information retrieved from http://www.history.com/topics/great-depression on 08/31/13.
Times Square Breadline image retrieved from http://www.history.com/images/media/slideshow/soup-kitchens-and-bread-lines/unemployed-in-line-for-rations.jpg on 08/24/2013.
Information retrieved from http://www.history.com/topics/great-depression on 08/31/13.