Great Depression

Great Depression

The Great Depression in the United States began on October 29, 1929, a day known forever after as “Black Tuesday,” when the American stock market–which had been roaring steadily upward for almost a decade–crashed, plunging the country into its most severe economic downturn yet. All across the United States, people were facing economic difficulties. United States was facing a depression, which is a situation when there isn't any money and there are very few jobs open to the public. People who invested their money in stocks began to lose all of their money. They couldn't pay their bank loans or personal bills. The depression affected the nation's banks as well. By 1932, many banks had closed their doors. This meant that people lost their savings. Without money, families could not afford a place to live or adequate food to eat. They also couldn't buy goods and services, which meant most businesses, had to close as well. Over 12 million people across the U.S. were unemployed at the peak of the depression.

In 1933, Franklin D. Roosevelt became President of the United States and he acted swiftly to try and stabilize the economy and provide jobs and relief to those who were suffering. Over the next eight years, the government instituted a series of experimental projects and programs, known collectively as the New Deal that aimed to restore some measure of dignity and prosperity to many Americans.

But FDR's New Deal failed to cure completely the Depression-induced ills of the American economy. By 1940, the percentage of Americans without jobs remained in double digits and the American people lacked the purchasing power to jump start the economy. Only American entry into World War II ended this torpor.

On December 7, 1941, the Japanese bombed Pearl Harbor and the United States entered World War II. The war effort stimulated American industry and, as a result, effectively ended the Great Depression.

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