today we're looking at the Great Depression
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you'll find more resources that go with many of the bellringer videos the Great Depression was
the worst economic downturn in American history it was not only an American economic depression
but also a depression felt worldwide from 1929 and Lasting until the end of the 1930s it began
with the stock market crash of 1929 causing millions of investors to lose everything from
their economic conditions only got worse consumer spending plummeted prompting companies to lay off
workers by 1933 the unemployment rate in the U.S reached nearly 25 percent with close to 15 million
Americans out of work compounding the problems of the 1930s was a drought that covered the West
Central Plains of the United States the region became known as the Dust Bowl as winds carried
dry soil creating dust storms killing livestock crops throughout the region throughout American
history the economy had suffered several panics recessions and overall economic slowdowns but
in each situation the economy had bounced back within a few years the Great Depression however
was something that the nation had never experienced before as the downturn was so
severe and lasted for so long there are several factors that historians argue brought on the Great
Depression one major factor was the overproduction of goods throughout the 1920s Americans had been
spending and buying more as they were caught up in what some refer to as a consumerism culture items
such as cars and household appliances were being bought up at increased rates by the late 1920s
many Americans had already purchased these items yet companies continued producing more once these
companies realized the demand for their products was going down they began to cut back production
over the decade of the 1930s the industrial production of the United States was cut in half
causing Millions to lose their jobs and paychecks another contributing factor was the fact that many
Americans during the 1920s were buying goods on credit or in other words purchasing using
borrowed money borrowing money to purchase Goods they wanted now became common countless Americans
even borrowed money to invest in the stock market which contributed to the severity of its collapse
Americans now found themselves in debt and jobs disappearing as the depression set in during the
early 1930s president Herbert Hoover along with other leaders insisted that the economic slump
would run its course as other downturns had in history at the same time however the unemployment
rate between 1930 to 1931 Rose from nine percent to over 15 percent people's homes were being
foreclosed on and they simply could not make payments without work Millions became homeless
with many building rickety shacks and shelters in what became known as Hoovervilles Banks began to
fail as people who had put their money in them lost confidence that the bank would indeed have
their money in the early 1930s Bank runs which were people rushing into Banks demanding their
accounts be cashed out became common during the decade of the 1930s nearly half of the banks in
the United States failed or had to close their doors President Hoover a republican continued
to argue that the federal government should not intervene in the election of 1932 Hoover
was defeated in a landslide to the Democratic governor of New York Franklin Delano Roosevelt
FDR came into office promising a new deal for the nation which meant new government programs
and offices that would provide Aid and attempt to help citizens suffering in the depression
during his first 100 days in Office Roosevelt was able to get legislation passed aimed at
creating more jobs getting industrial production up aiding agricultural workers and stabilizing the
banking system the federal government helped put people to work by having them do public projects
programs such as the Tennessee Valley Authority or TVA built dozens of dams and hydroelectric
plants to provide Power to impoverished areas of the country the works progress administration or
WPA put over 8 million Americans to work building schools roads and public facilities such as those
still used today at National Parks President Roosevelt began using the power of radio to
address the nation and advocate for his policies in what became known as FDR's Fireside Chats the
president reassured Americans that the government was there to help and that brighter days were
ahead additionally President Roosevelt felt there should be some form of unemployment insurance for
all Americans to protect them if they lost their job in 1935 Congress passed the Social
Security Act which created a safety net for the unemployed and elderly who had no other income
to this day social security measures that were put into effect during the Great Depression are
still used in a hotly debated issue eventually the United States did rebound from the economic
downturn by the late 1930s to early 40s with the outbreak of World War II the Great Depression
would have a lasting impact on the United States and the world that is still felt to this day
so with that hopefully you learned something and thanks for watching