TB2+Black+Tuesday+and+the+1929+Stock+Market+Crash 


 * __ Dan K. AND Destiny S. and Nick D. __**

The Great Depression in the late 1920’s and 1930’s had many causes. The first and most commonly accepted reason is the crash of the stock market. The crash itself was brought on by a combination of various factors. At the time, speculators interested in stocks continued to borrow and buy assuming that profit on the stocks would secure a profit. However, this inflated the stocks of price to an unmaintainable level. To encourage this spending, the Federal Reserve decreased interest rates for loans which made loans more desirable. Eventually, the glory days of the roaring twenties began to decline. As stock prices slowly began to plummet fear overtook the minds of speculators and many quickly begin liquidating their stocks thus beginning to reveal the true condition of the stock market.
 * __ The Causes of The Great Depression __**



During the Great Depression, people resorted to drastic measures. Many went as far as people digging in garbage either to feed themselves and produced moonshine for extra money. It left customers, who always paid cash, in debt at the grocery stores. Due to the malnutrition experienced as an effect of the Depression, leftovers were thrown out to people who needed it, instead of in the garbage.By the winter of 1931, there were over eight million unemployed workers and the surplus quantities of food drove prices down, causing many farmers to go into bankruptcy.Because they were jobless and broke, many of these people took to riding railroad boxcars to anywhere, desperately seeking employment. Businesses kept prices artificially high to increase profits coming in, and also increased the number of products they produced, then fewer people could afford the products, leading to the surplus. Soon people began buying less, so businesses had to cut back production by closing down factories and laying off many of their employees. By about 1932 the unemployment level reached fourteen million and was still growing. Eventually, the Reconstruction Finance Corporation was started by Hoover in 1932. The objective of it was to lend money to business and banks to keep them from going under, and ruining the economy. This program was kept on the down-low, because the government did not want the public to lose confidence in banks over these “handouts”. Soon after, in July 1932, the Emergency Relief Act became law. It loaned up to $300,000 of government money to states for relief purposes. media type="custom" key="25782918"
 * __ Life During the Great Depression: __**

The great depression was a trying time in United States history. With the collapse of the stock market in 1929 and the destruction of the 1920’s way of life, people found themselves jobless and in despair. The frivolous monetary trend of the 20’s ultimately created an economic system that could not support itself. As the way of life declined, people began to lose faith in the government. With less faith in government, people spent less money and thus the economy could not rebuild itself. With disparity in their hearts, people found themselves scraping the bottom of the moral barrel to survive. At points they were forced to jump on railroad boxcars and leave what was left of their lives behind in the hope of finding the progressively scarcer job opportunities. In regards to food, people found that they could only afford the most meager supply of sustenance and were at times forced to scrounge through the garbage. To make extra money on the side, people often resorted to moonshine production. Unemployment soared to the millions at an astounding twenty five percent of labor force. President Herbert Hoover simply didn’t meet the quota for economic reform to fix the problems faced by the American people. It wasn’t until the well-known President Franklin D. Roosevelt took office that the depression finally took a turn for the better. F.D.R., as Roosevelt is nicknamed, took it upon himself to pass mass reform bills in what would be called “The New Deal”. Between his fireside chats, and the new opportunity for government funded occupations, American society began to regain some of its faith in the economy. As happier sentiments spread, the economy improved and eventually, after a long and painful existence, the great depression slowly came to an end. As a result of this experience, numerous measures have been taken by the U.S. government to help prevent a similar event in the future, including social security, Medicare, and Medicaid.
 * __ In Summary __**

For more photos See: []

Darity, William A., ed. "Great Depression." //U.S. History in Context//. Macmillan Reference USA, 2008. Web. 30 Apr. 2014. .
 * __ Source Citations: __**

Jeffries, John W. "Great Depression." Ed. Gary B. Nash. //American History Online//.Facts on File, 2010. Web. 30 Apr. 2014. [].

Kelley, Martin. "Great Depression." //About American History//. American History, n.d. Web. 1 May 2014. Lassa, Julie. "Life During the Depression." //Life During the Depression//. //Portage County Historical Society//. Web. 1 May 2014. [|http://http://www.pchswi.org/archives/misc/lifedepression.html].