America in the Depression

Central Idea

  • In 1929, the Wall Street stock market crashed, leading to a serious, decade-long depression.

Economic Effects of the Wall Street Crash

  • Immediate Economic Effects

    • Constant buying and selling inflated share prices

    • Market collapse led to panic selling and credit shortage

  • Depression Impact

    1. Industrial production dropped by a third

    2. Bank closures due to loan defaults

    3. Reduced credit availability and business closures

Social Effects of the Depression

  • Unemployment

    • 25% of American workforce unemployed by 1933

  • Poverty and Relief

    1. Severe poverty and starvation

    2. Reliance on relief schemes for food and shelter

    3. Homelessness and family disruptions

Effects on Farmers

  • Struggles

    1. Low crop prices and increased debts

    2. Droughts leading to the Dust Bowl

  • Migrant Workers

    • Seeking work in California, facing exploitation

Impact on Businessmen

  • Bankruptcies

    1. Thousands of businesses bankrupt

    2. Unemployment among businessmen

  • Loan Shortages

    1. Banks stopped giving loans

    2. Struggling businesses forced to close

Business Challenges Pre-Crash

  • Overproduction

    • Supply exceeding demand, leading to profit loss

Conclusion

  • The Wall Street Crash had profound economic and social consequences, affecting various sectors and leading to a decade-long depression.