explain the Great Depression on United States of America
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Hey,
The Great Depression was indeed a very depressing period in the history of the United States of America and consequently many other economies in the world. It was the deepest and the longest-lasting economic downturn in the history of the western civilized world.
Many people lost a lot of money, jobs and even their livelihood. There was poverty and hunger everywhere. There were bread lines, soup lines for people who could not afford to buy food and even shanties where people who lost their homes had to move into called "Hooverville" (taken from the name of the American President at that time.
HOPE IT HELPS YOU:-))
The Great Depression was indeed a very depressing period in the history of the United States of America and consequently many other economies in the world. It was the deepest and the longest-lasting economic downturn in the history of the western civilized world.
Many people lost a lot of money, jobs and even their livelihood. There was poverty and hunger everywhere. There were bread lines, soup lines for people who could not afford to buy food and even shanties where people who lost their homes had to move into called "Hooverville" (taken from the name of the American President at that time.
HOPE IT HELPS YOU:-))
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The Great Depression began in August 1929, when the United States economy first went into an economic recession.
Industries that suffered the most included construction, agriculture as dust-bowl conditionspersisted in the agricultural heartland, shipping, mining, and logging as well as durable goods like automobiles and appliances that could be postponed. The economy reached bottom in the winter of 1932–33; then came four years of very rapid growth until 1937, when the Recession of 1937 brought back 1934 levels of unemployment.
Banks began to fail in October 1930 (one year after the crash) when farmers defaulted on loans. There was no federal deposit insurance during that time as bank failures were considered quite common. This worried depositors that they might have a chance of losing all their savings, therefore, people started to withdraw money and changed it into currency. As deposits taken out from the bank increased, the money supply decreased because the money multiplier worked in reverse, forcing banks to liquidate assets (such as call in loans rather than create new loans.)[8] This caused the money supply to shrink and the economy to contract and a significant decrease in aggregate investment. The decreased money supply further aggravated price deflation, putting further pressure on already struggling businesses.
Industries that suffered the most included construction, agriculture as dust-bowl conditionspersisted in the agricultural heartland, shipping, mining, and logging as well as durable goods like automobiles and appliances that could be postponed. The economy reached bottom in the winter of 1932–33; then came four years of very rapid growth until 1937, when the Recession of 1937 brought back 1934 levels of unemployment.
Banks began to fail in October 1930 (one year after the crash) when farmers defaulted on loans. There was no federal deposit insurance during that time as bank failures were considered quite common. This worried depositors that they might have a chance of losing all their savings, therefore, people started to withdraw money and changed it into currency. As deposits taken out from the bank increased, the money supply decreased because the money multiplier worked in reverse, forcing banks to liquidate assets (such as call in loans rather than create new loans.)[8] This caused the money supply to shrink and the economy to contract and a significant decrease in aggregate investment. The decreased money supply further aggravated price deflation, putting further pressure on already struggling businesses.
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