AbstractThe research focuses on the main problems and causes took place in the USA during 1929 and 1939. The economic downturn significantly damaged the country and many lost their everything. People were unable to afford for food and shelter.
Many left outside and wait for the changing days. The president Franklin Roosevelt who was the main game changer and saved America from collapsing entirely by applying wise and effective strategies.Introduction Though the history of The United States, the country has never faced such a disastrous period in its life-time.
This economic downturn caused several negative effects and millions of people have suffered in this period. Also, it was known as the most longest-lasting depression which destroyed the majority of stock markets and banks within the country. It took place on 29th of October 1929 till 1939.
During that time it was more important for the government to tackle the issue to save the well-being of the country. From this event, millions of people lose their jobs, properties, and houses. For 10 years, Americans had to first to for the survival and wait for the situation get better. This paper, thus, is going to analyze what problems did this period brought and how The USA took action to tackle the problem and make the situation better in a short period. Problems Agriculture When the Word War took place before the Great Depression starts, the United Stated had to send the huge amount of supplies and food for the soldiers who were fighting overseas. Since the war last for four years, obviously, the country must have send the suitable supplies for war in a big magnitude (Farms and Cities in Great Depression 2017). The consequences got more worse when the economy crashed. It lead the price of products to go down dramatically.
On the other hand, in order to produce more food and products for people, farmers had to work so hard. Moreover, they also needed to pay the taxes and debts and cover their living expenses. As soon as the Great Depression started, the vast majority of farmers lost their assets and farming lands due to the reason which they could not pay back their renting taxes. In some of the areas, there were several farmers who committed suicide and many lost their job and lived in poverty. Farmers in the big cities united and created worker union to protest against the government to give them some help and save their jobs. As the farming is the most important aspect for people, cutting farmers caused a great concern for people to survive.
Thus, finding and being able to afford for food became a major issue for people and for the government.EducationWhen it comes it enrollment at colleges and universities during the great depression, the rate significantly dropped and many high school and upper institutions were lack of students (Pardon our interruption 2009). Getting a higher education for an average income family had become a serious problem.
Getting student loans and studying at the college yet became almost impossible. The student was discouraged to apply to get a higher degree even to cover their tuition there were no part-time jobs which they could have found outside of the campus. Many professors who had a job at the universities often invited students for a dinner as a manner of showing help and empathy. The government funds for the scholarships and grants were taken off and spend for developing the economy.
As a matter of fact, getting an education is a core force for the society to develop itself. Therefore, people with a higher education increased a chance of being hired in some areas. Economy as a whole In the country itself, after the major breakdown in the stock market, in 1929 the gross domestic product showed a devastating 105million dollars. In today’s statistics, this figure shows 1.057trillion(The balance, 2017). The country started to experience an economic shrink in August.
Before entering 1930, many banks lost their saving and their loans. The rich suffered a lot because of the huge reducing percentage in the stock market. This also effected normal income families to lose all the money in the banks.
As time passes by, GDP shrined by 8.5 % in one year. There was a decrease of 6.
5% and 12%, in following 1931 and 1932 respectively. As a result, the overall economy was only $57 billion and yearly it decreased by 10%. This is because of the high unemployment rate (25%) and poverty which spread across the states. People consumed less to save money for the future for food (Crash course, 2013). Also, there were 10 million people were living in tends outside who previously had a home and nice paid jobs. Less consumption lead other markets to shrink their business and had to lay off their stuff to keep their assets high and inventory low. This strategy did not save all companies because they almost lost their all customers and clients and to pay taxes the company was ran out of money and they went bankrupt. The Great Depression also effected the international trade.
The USA barely traded with a Europe because of high tariffs and Europe also had difficulties to trade with the US due to the same reason. To get some money for the government, the ministry had to put high tariffs on the imports SolutionThe situation started getting better when the president Franklin Roosevelt was elected in 1933. He implemented the strategy to restructure the overall economy and finish the great depression (New deal, 2009). He firstly, convinced all Americans to try hard and should be careful about what to do.
In 3 month he signed the Tennessee Valley Authority Act to build a dams to produce a hydro energy and create working places for people. Then he signed another many law and act to develop the industry. For that reason, agriculture started getting funds from the government and started operating in an efficient way. In 1935, he created Works Progress Administration(WPA) to create more jobs and focus on building buildings, factories and many structures and schools to promote the education.
Thus, the situation stared to be better because of the clever strategy of the president. ConclusionTo conclude, the Great Depression was the greatest challenge for the United States of America. It tough the people to unite and solve the problem together. Though being said, this incident will never be forgotten by Americans because it teaches them to be persistent not to go back to such times.
Hence, such period can also be considered as one of the reasons why the USA is one of the leading countries in the world now.ReferenceHatcher, Camille. “What Problems Did the Great Depression Create?” Prezi.com, 15 Apr. 2015, prezi.com/7czl_u6ytlkn/what-problems-did-the-great-depression-create/.”The Great Depression Hits Farms and Cities in the 1930s.” IPTV, 11 Apr.
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