The Great Depression
The Great Depression
Though most Americans are aware of the Great Depression of 1929, which may well be "the most serious problem facing our free enterprise economic system,"( ) few know of the many Americans who lost their homes, life savings and jobs. This paper briefly states the causes of the depression and summarizes the vast problems Americans faced during the eleven years of its span. This paper primarily focuses on what life was like for farmers during the time of the
Depression, as portrayed in John Steinbeck's The Grapes of Wrath, and tells what the government did to end the Depression.
In the 1920's, after World War 1, danger signals were apparent that a great
Depression was coming. A major cause of the Depression was that the pay of workers did not increase at all. Because of this, they couldn't afford manufactured goods. While the factories were still manufacturing goods,
Americans weren't able to afford them and the factories made no money (Drewry and O'connor 559).
Another major cause related to farmers. Farmers weren't doing to well because they were producing more crops and farm products than could be sold at high prices. Therefore, they made a very small profit. This insufficient profit wouldn't allow the farmers to purchase new machinery and because of this they couldn't produce goods quick enough (Drewry and O'connor 559).
A new plan was created called the installment plan. This plan was established because many Americans didn't have enough money to buy goods and services that were needed or wanted. The installment plan stated that people could buy products on credit and make monthly payments. The one major problem with this idea was that people soon found out that they couldn't afford to make the monthly payment(Drewry and O'connor 559).
In 1929 the stock market crashed. Many Americans purchased stocks because they were certain of the economy. People started selling their stocks at a fast pace; over sixteen million
Though most Americans are aware of the Great Depression of 1929, which may well be "the most serious problem facing our free enterprise economic system,"( ) few know of the many Americans who lost their homes, life savings and jobs. This paper briefly states the causes of the depression and summarizes the vast problems Americans faced during the eleven years of its span. This paper primarily focuses on what life was like for farmers during the time of the
Depression, as portrayed in John Steinbeck's The Grapes of Wrath, and tells what the government did to end the Depression.
In the 1920's, after World War 1, danger signals were apparent that a great
Depression was coming. A major cause of the Depression was that the pay of workers did not increase at all. Because of this, they couldn't afford manufactured goods. While the factories were still manufacturing goods,
Americans weren't able to afford them and the factories made no money (Drewry and O'connor 559).
Another major cause related to farmers. Farmers weren't doing to well because they were producing more crops and farm products than could be sold at high prices. Therefore, they made a very small profit. This insufficient profit wouldn't allow the farmers to purchase new machinery and because of this they couldn't produce goods quick enough (Drewry and O'connor 559).
A new plan was created called the installment plan. This plan was established because many Americans didn't have enough money to buy goods and services that were needed or wanted. The installment plan stated that people could buy products on credit and make monthly payments. The one major problem with this idea was that people soon found out that they couldn't afford to make the monthly payment(Drewry and O'connor 559).
In 1929 the stock market crashed. Many Americans purchased stocks because they were certain of the economy. People started selling their stocks at a fast pace; over sixteen million