The impact of the Great Depression
The American economy had suffered economic downturns and slumps before, but the Great Depression was the worst in the country鈥檚 history. It affected more people and lasted much longer.
American society during the Great Depression
The underlying weaknesses in the US economy and the impact of the 1929 Wall Street Crash rapidly led to the Great Depression. In contrast to the boom of the 1920s, the 1930s was, for many people, a decade of hardship, poverty and desperation.
Business and banks
Between 1929 and 1933, industrial production in the USA fell dramatically. Some businesses were forced to cut production, reduce working hours or even shut down completely. Many banks ran out of money and were forced out of business. Around 9,000 banks closed between 1930 and 1933. This meant that many Americans lost their savings.
Unemployment
- The number of products sold halved between 1929 and 1933. Falling consumer demand meant that businesses could make less profit.
- Many workers lost their jobs as businesses couldn鈥檛 afford to pay them.
- By July 1932 around 23 per cent of the working population were unemployed. In some parts of America, this percentage was much higher.
- With no income and difficulty finding work, many people were evicted from their homes and became homeless.
- As America had no social Payments and other benefits, such as education, health care, and unemployment payments, given to a population free at the point of use, although paid for by general taxation. schemes, many people became reliant on charity.
- A line in which people in extreme poverty, who did not have the money to buy food for themselves or their families, queued up for food handouts. and A place where free food is served to those who are homeless or in extreme poverty. became necessary for survival.
Farmers
Farmers continued to suffer during the Great Depression as they had during the 1920s. Farmers who couldn鈥檛 afford to pay their debts or A mortgage is a type of loan. It is usually a large amount of money used to pay for a property. continued to be evicted and lost their land. Farmers often couldn鈥檛 afford to pay farmworkers, so they lost their jobs. Severe drought and soil erosion in the The name given to a large area of land in the US where over-farming in the 1920s had initially led to soil being impossible to farm. The soil was then blown away by heavy dust storms in the 1930s. area made effective farming impossible.
A loss of confidence
The Great Depression affected how people lived, both from a physical and mental perspective. For example, many Americans were losing faith in the idea of the The idea that everyone in the USA has the chance to be successful and happy if they work hard.