The Great Depression was a time of sadness, poverty, and desperation. The Great Depression started at the end of the 1920’s when the stock market crash happened. Many people invested in the stock and thought they would make a huge profit from it, but it did not turn out that way. The people that invested in the stock went into debt because the stock prices fell millions of dollars and then stock owners were thousands of dollars deep in debt. The people in debt went to banks and tried to get money, but the banks did not have any so they were forced to close. Tragedy of the Great depression impacted different people in different aspects such as home life, leisure time, economy, and role of government.
Economy of The Great Depression/1930's
The economy had the most change during The Great Depression. The farming industry in the 1920’s was not doing well, the farmers did not need to support with crops as much anymore and they started to overproduce. Also there was a growing rate of consumerism and lots of industrial growth. Many people were buying on credit and caused the industrial growth. People used credit to buy items that they usually could not. Another thing that happened in the 1920’s was the stock market was booming and people were investing money thinking they would make a profit from the stock. Then suddenly in October 1929 the crash happened. It had great impact on the economy and caused it to lose a lot of money. People went into debt and tried going to banks to get the money to give to the market. Banks were forced to close because they did not have enough money to support the people. This caused a rise in unemployment. Banks closed so bankers did not have jobs, and at the same time business owners could not support their workers so they had to lay them off. The rural economy in the 30’s also fell off because farmers could not produce because of the dust storm so the rural economy did not make as much money, and when there was not dust storms they were experiencing a long drought. African Americans were impacted horribly by this and lost a lot of their equality. They were last hired and first fired for jobs where they competed against whites. Blacks in the 30’s were experiencing a much greater unemployment rate that was two to three times greater than everyone else.The African Americans in the 1920’s were not treated that bad and made money, had jobs, and were very successful in making their own communities. Also bankers were impacted by the economy. At the start of The Great Depression many of the banks had to close because all of the people that went into debt went to the bank looking for money to pay the stock market back, but the banks did not have any money to give them. When a bank would close all the bankers their lost their jobs and started to not make any money. Once FDR stepped in as the president he gave the banks a one day holiday so they can deliver money to the banks. Once they reopened he convinced people to invest their money in the banks and to trust the banks.
The impact of the economy on African Americans