The Depresion essays

The Depresion essays The Great depression was in full effect by the 1930s, which effected millions of people and hurt the economy until World War 2. The depression brought on an eight year span of poverty, low wages, distrust in banking and government due to bad business, foreign and domestic. Faced with difficult time and a leader, who didnt help the situation until it was to late, people were looking for help to set the economy rolling again, The economy was clearly in recession by 1929. The economy was dealt a heavy blow on Black Thursday, October 24 when prices in the stock market plummeted, then again on Black Tuesday, October 29. The crash of the stock market had effects all over the nation, because banks had invested heavily in the stock market, banks were forced to close, which then effected the population. When the banks closed, in this time there were no insurance on the security of the banks money, people lost all there savings causing people to lose trust in banking. As more and more banks started to close people got scared and scrambled to their banks to get their savings out, only to find that the vaults were empty, which encouraged people not to spend, invest, and put their money in the banks. Study shows, if the people would have spent and invested their money that alone, would have been enough to bring the country out of the depression, but because of the distrust in the banking industry the depression k ept moving forward. Although the unstable banking industry was a large factor in the decline of the economy it wasnt the only reason. The unequal distribution of wealth underlined the weakness of the economy, where the upper- and middle-income families got more of the national income then the lower class and minority ethnicities. This hurt the economy because money wasnt spent where it needed to pull the economy out of recession. The skewed distribution of wealth allowed the top 5 percent of the upper- and m...