Question

How was the life for Americans during the Great Depression? What were the key events during that time ? Why and how did it started?

Answer 1

The Great Depression was a global phenomenon, unlike previous economic downturns which generally were confined to a handful of nations or specific regions. Life for American was very crucial during great depression because more than13 million people were unemployed, 1 out of every 4 people working were now without a job. This figure does not include the millions more who had to work part time and/or take a cut in pay. It also does not include the people who never had a job. Just those who had a and lost it or were not too discouraged to continue looking for one. Most people accepted the Depression as a fact of life and did their best to survive through hard times. Most people thought that their failure to hold a job was their own fault. Others, however got very angry and sometimes the anger boiled over.

Key events during Great Depression:

More than 13 million people were unemployed.

Relief payments in New York City were $2.39 for a family of 4 per week.

The GNP (Gross National Product) fell from $104 in 1929, to $59 billion in 1932

5,000 banks failed between 1929 to 32. Many people lost everything they had saved.

People began to line up in front of banks to take all of their money out. To prevent this, several states ordered all banks in the state to close.

Price of average share of stock dropped from $310 in 1929, to $34 in 1932, or by almost 10 times or 1,000%.

The income of the average farm family fell from $790 a year to $200.

There was not just one factor, but instead a combination of domestic and worldwide conditions that led to the Great Depression. It was started due to Crash in stock Market of US in 1929(which effected and dropped consumer spending and investments), Reduction in purchasing from across the board, Bank Failures, Drought conditions, and American Economic policy with Europe.