The year of 1929 began a time period of horror in America. It was thebeginning of the great depression. A time in which many lost their jobs becamehomeless, and went hungry.
Many people had to live off the nutrition of weeds orsome worked fifty – five hours and only earned seventy – five cents. The causeof the depression was the stock market crash of 1929 known to investors as BlackTuesday. Black Tuesday is said to be the most shocking financial event in thehistory of the united states. Not only did the stock market prices dropdrastically but the business world was brought down with it. Inflation also rosebecause of the crash.Order now
The crash that occurred on October of 1929 causedAmericans to lose Thirty billion dollars and the American dollar value was 90%less than it was prior to October of 1929. Wholesale and retail food pricesdropped 40% and farm prices dropped over 60%. About four million families wereleft unemployed and on relief support only receiving fifteen dollars a month. Because of the crash the government was required to set new regulationsregarding stock market trade.
The reason for this was to attempt to preventanother stock market crash from happening in the future. The depression broughtabout many problems not only did people have to worry about unemployment theyalso had to worry about crime. Many Americans tried to get easy money by takingpart in robberies kidnappings and murders. In 1935 criminals out numberedcarpenters four to one, grocers six to one, and doctors twenty to one.
In themid west, crooks with shot guns and Tommy Gun were a common thing. In largecities the criminals were making money off of extortion prostitution and autotheft.GREAT DEPRESSION TIMELINE 1929 Herbert Hoover became president Stockmarket crash begins on October 24 investors call October 29 Black Tuesday Lossesfor the month are sixteen billion congress passes Agricultural Marketing Act tosupport farmers until they can get on their feet 1930 By February, FederalReserve cut prime interest rate 6% to 4% The smoot-Hawley Tariff passes on June17 Democrats gain in congressional elections but still dont have majority TheGNP fails 9.4% and unemployment rate climbs 3.2% to 8.7% 1931 A second bankingpanic occurs in the spring The GNP falls another 8.5% Unemployment rises to15.9% 1932 This year and next year are the worst of the depression GNP falls arecord 13.4% Unemployment falls another 23.6% Congress creates thereconstruction finance corporation Congress passes the federal home loan bankact Congress passes the glass steagall act of 1932 1933 Roosevelt inauguratedThird banking panic occurs Congress passes the Emergency Banking Bill,The farmcredit Act,and National Industrial Recovery Act 1934 Gnp rises 7.7% Unemploymentfalls 21.7% 1935 GNP rises 8.1% Unemployment falls 20.1% 1936 GNP rises 14.1%Unemployment falls to 16.9%