During the 1920s the economy was at it’s highest peak. The stocks were sky high and people thought that they would stay up forever so they began investing. They bought using margin and did not think about how they would pay. The consumerism aspect of society increased. They bought everything they could possibly need, on credit. Bankers and stockbrokers were not careful how much money they loaned out.
They were making millions of dollars, and living the life of luxury. African Americans also had a better life. Harlem, the place of their culture, music and art. They could express themselves there and live how they wanted. They were being noticed by the whites who noticed their true talent.
Although they were doing amazing, that did not mean the whole country was. Life in rural America was harder than ever. They did not have and people to sell their crops to so they picked up surplus.
Then in 1929 the stock market crashed signaling the start of the depression. People lost millions of dollars, they could not get the money that they need to pay back all debt. It had hit people hard, they were in major debt. Business closed down and the economy took a huge dip down.
Bankers and Stockbrokers lived the life of carelessness and irresponsibility. They were making millions of dollars from being this reckless and loaning out all money possible.
However this only lasted for the timer of the 1920s and disappeared to make way for the harsh reality of 1930s. As the stocks hit their low on October of 1929 and left millions broke. Now it came to realization that giving stocks out on margin and loaning out so much credit was a large mistake. People were unable to pay back all of the money they owed stockbrokers so they had to dip into their savings.
This sudden interest in going to the bank caused for problems. As so many people waned loans, the bank had no money to give back to the people who needed it. The doors of the bank ended up closing the doors leaving the people unable to pay back stock brokers. This caused the stock brokers to go bankrupt as well as bankers. These were not the only people affected.
During the 1920s African Americans had areas that would tell a lot about themselves and their culture. The Harlem Renaissance kept their spirits up even though they were treated with inequality. Not much changed between the 20s and 30s except the amount of segregation. Their music business that was huge during the 20s as people listened to jazz. It began to disappear during the 30s but as people came more interested it grew back up. They thrived in adversity while being segregated against.
People during the 1920s lived with major prosperity.
They lived optimistic lives spending all the money they did not have. They bought many appliances to make their lives easier and more officiant.
Rural America struggled a lot as the dust storms took over. This part of America was also unneeded. Dust storms swallowed rural america as farmers made the land to dry.
A lot of money was used during the 20s time although not able to be payed back. All the money not able to be payed back caused business to close and many people too loose their jobs. All this unemployment caused poverty. They ended up selling their houses, cars and everything they own, just to make a living. People lived in tents outside with nothing.
They also lived in Hoovervilles or Shanties. These places are where people live out of the city by waterside. They make houses out of cardboard boxes, scrap wood, metal and anything that they could find.
Women were always thought of as just needed in the house. Many men thought they just wanted to ge money and take the men's jobs. During the 1930s they were the ones in the family who managed to get out of starving all while struggling to just get by in life. They had to learn to cut corners in their lives.
Farmers ended up doing poorly in the 1920s as the modern america forgot all about them. Rural America did not take part in the economic boom. The sudden decrease in the demand for goods left farmers with their crops surplusing which lead to a lack of income to pay for houses with. Banks forced them out of their homes leaving them homeless.
During the 1930s it was surprising with their prior state that they were in how much better they were doing then modern America. Since they had all the crops that they were not able to sell, they had a supply of food to eat. It was easier to get by with the little money they had due to the amount of time they have dealt with this problem
However the wealthy families did not have to deal with any of these problems. But the poor had to eat from soup kitchens and live in boxes.
During the 1920s with all the new appliances people had so much free time. They went movies and spent their sunday nights out.
When the 1930s came around people were depressed. They chose to go to movies and listen to jazz to help them get away from their troubles. Even with their extremely tight budget they still went dancing, read books and watched movies. Throughout all the tough times they turned to music to help them forget.
African Americans continued to prosper but kept using harlem as their cultural place during the 20s. The music industry was booming as people loved to listen to jazz. As the 1930s hit there was a lack of people listening to their music which caused the industry to plummet. The industry then went back up as people used jazz to dance and listen to as a way out of the struggles.
Business owners although not discriminated against somehow did worse. Before that happened they were doing amazing. They were selling a ton of products and made a lot of money. Sooner or later that all ended as the stocks crashed and nobody could buy anything leaving the businesses closed with surplus and all their employees out of work. Although Industrialists stayed rich and stayed living the same lives, they did not have enough buying power to keep America's industry running.
During the 1920s the government ran on a strict laissez faire policy. It was all republican presidents who let the business take over in the government job.
When the 30s rolled around, it was clear then that a republican president was not helpful. The country needed guidance, so the next election, FDR was elected seeing as he brought them hope. FDR helped many people and was the most active president the country had for a long time. He took action quickly to help relieve the economy. He used three tactics relief, recovery and reform. Unlike Hoover who tried to help by helping indirectly and left help of people to charity.
During the time of 1920s Africans Americans were unhelped by the government but that changed. When the government chose to finally socially intervene they received less help than whites. The black cabinet was created in favor of black rights and likes.
Bankers and stockbrokers ran themselves during the 20s seeing as the government ran a laissez faire policy. They did whatever they wanted to and never set back. When it struck October 1929 they realised that the government needed to help. When FDR was elected he put in force a National bank holiday to reinforce the banks and put more money on command. He helped people to regain their trust in banks.
This shows people went from spending all to nothing
As companies lost all their business product acumulated