How The Great Depression Affected Society

Have you ever wondered why the roaring 20s turned into the depressing 30s? The Great Depression was major plot twist in the economic world. It affected society, it also made many scratch their heads and caused different nation to reshape themselves. This whole thing started after shattering of Stock Market. Before the Stock Market, the 1920s was expecting a high graph for economic growth but, when this show happened so many people began to struggle to create money to survive also people began to make very risky investments which started a chain reaction all over the world. Banks started to fail, businesses began to close their gates and millions of people began to get laid off.Each nation began to participate in this crisis as a country they …show more content…
Black Tuesday sparked the beginning of the Great Depression in hours as billions of dollars in stocks vanished. In the United States, over 25% are not working, many lost their homes and ended up living in Hooverville. A community of makeshift homes built with tents, shacks, or whatever they could get their hands on. Most were along river banks, vacant lots or areas that were not suited for development. People face hunger, starvation and diseases. Towns have little access to clean water or sanitation. (Swados, 1982) Many people panic and rush to get money because they are worried the banks will go out of business. The long lines outside the banks made others panic, which caused everyone to withdraw. Banks ran out of money to give to people, making too many of them go out of business. In 1933, approximately 9000 banks failed, and many families lost their savings. Some families were hit hard by the Great Depression. (Gottfried Haberler, 1976) There was a lot of inequality, especially among minorities groups in the United States, hit the worst, and African Americans. It wasn't just money people had lost. People lost their mental health that led to suicide, with people not being able to cope with their anxiety and depression. The Great Depression was one big hit that changed the world forever, showing how fragile an economy could be, we need to …show more content…
Some solutions to the problem of income inequality were through measures such as progressive taxation, minimum wage laws, and social welfare programs. These have helped lower poverty and narrow income gaps. This program isn't exactly fair; it is a burden on high income owners. Another approach was promoting responsible borrowing practices and some financial education to help with debt-crazy spending. There were programs created to improve financial problems and regulations on lending, created to educate people and to eliminate or limit excessive borrowing. However, people challenge this based on their own beliefs about debt and spending habits. (Gottfried Haberler, 1976) Some more critical measures were regulations on financial institutions and markets, they created the Dobbs-Frank Act to impose a much stronger and stricter direction on financial entities and market stability. New agencies are watching over them to protect people from making bad practice decisions. One big part of the Dobbs-Frank Act is that it limits banks from making risky trades with their own money. Investment in education is crucial to make sure that workers have the skills needed to survive in this constantly changing society, providing people with training and education will help in the long run. People can adapt to the new technology and job requirements. (Smiley, 2002) Funding restrictions may limit the resources available to