The Wall Street crash of the late 1920s led to severe economic turmoil affecting various sectors of society. Families struggled to provide basic necessities for their children, leading to widespread malnutrition and limited access to proper healthcare and education.
The stock market crash of 1929 marked the beginning of a severe economic downturn that lasted for a decade, leading to widespread unemployment, bank failures, homelessness, and hardship for millions of people.
The effects of the Great Depression were far-reaching and prompted significant changes in economic policies and regulations to prevent similar crises in the future.
Topic principal
who were afected
Children and Families
Families struggled to provide for their children. Many children experienced malnutrition, lack of proper healthcare, and limited access to education.
Minorities
Minorities, especially African Americans and Hispanics, faced even higher rates of unemployment and discrimination. They often had fewer job opportunities and were disproportionately affected by economic hardships.
Banks and Financial Institutions
Thousands of banks failed during the Great Depression, leading to the loss of people's savings. The banking system struggled due to bad loans and a lack of consumer confidence.
Investors
The stock market crash wiped out vast amounts of wealth for investors who had heavily invested in stocks, causing significant financial losses.
Business Owners
Even successful businesses faced challenges as consumer spending plummeted. Many companies went bankrupt or significantly downsized operations, leading to widespread economic turmoil
Farmers
Agricultural communities suffered greatly during the Great Depression. Falling crop prices, drought, and the Dust Bowl—a severe drought that affected the Great Plains—devastated farming communities, leading to crop failures and forcing many farmers off their lands.
Workers and the Unemployed
: Millions of workers lost their jobs as businesses closed or scaled back production. Unemployment rates soared, reaching unprecedented levels—approximately 25% at its peak. Many families struggled to make ends meet, facing poverty, homelessness, and hunger.
Unequal Distribution of Wealth
There was a significant disparity between the rich and the poor. The wealthiest individuals held a disproportionate amount of the nation's wealth, while many Americans struggled with poverty.
This economic inequality contributed to the instability of the economy.
Banking Practices
Banks were involved in speculative investments and had also lent substantial amounts of money to investors who then suffered heavy losses in the market crash.
This weakened the banking system and caused many banks to fail, leading to a loss of people's savings.
Overproduction and Underconsumption
Industries were producing goods at a rapid pace, but wages were not rising proportionately.
This resulted in a situation where there was an oversupply of goods, but people couldn't afford to buy them. This imbalance between production and consumption weakened the economy.
Stock Market Speculation
During the 1920s, there was a widespread speculative frenzy in the stock market, with many people buying stocks on margin (using borrowed money) and without considering the actual value of the companies they were investing in. This led to an inflated stock market bubble.
Tariffs and International Trade
The Smoot-Hawley Tariff Act, which raised tariffs on imported goods, was enacted in 1930.
This led to retaliatory tariffs from other countries, which hampered international trade and further worsened the economic situation.
