The Great Depression (1929-39) was the deepest and longest-lasting economic downturn in the history of the Western industrialized world. In the United States, the Great Depression began soon after the stock market crash of October 1929, which sent Wall Street into a panic and wiped out millions of investors.
Causes of the Great Depression
Black Tuesday |
New York Stock Market Crash |
Herbert Hoover
Herbert Hoover (1874-1964), America’s 31st president,
took office in 1929, the year the U.S. economy plummeted
into the Great Depression. Although his predecessors’
policies undoubtedly contributed to the crisis, which
lasted over a decade, Hoover bore much of the blame
in the minds of the American people. As the Depression
deepened, Hoover failed to recognize the severity of the
situation or leverage the power of the federal government
to squarely address it.
took office in 1929, the year the U.S. economy plummeted
into the Great Depression. Although his predecessors’
policies undoubtedly contributed to the crisis, which
lasted over a decade, Hoover bore much of the blame
in the minds of the American people. As the Depression
deepened, Hoover failed to recognize the severity of the
situation or leverage the power of the federal government
to squarely address it.
Depression in the City
Breadlines
During the Great Depression thousands of unemployed residents who could not pay their rent or mortgages were evicted into the world of public assistance and bread lines. Unable to find work and seeing that each job they applied for had hundreds of seekers, these shabby, disillusioned men wandered aimlessly without funds, begging, picking over refuse in city dumps, and finally getting up the courage to stand and be seen publicly
Depression in the Countryside
The New Deal
Glass-Steagall ActAn act the U.S. Congress passed in 1933 as the Banking Act, which prohibited commercial banks from participating in the investment banking business. The Glass-Steagall Act was sponsored by Senator Carter Glass, a former Treasury secretary, and Senator Henry Steagall, a member of the House of Representatives and chairman of the House Banking and Currency Committee. The Act was passed as an emergency measure to counter the failure of almost 5,000 banks during the Great Depression.
|
Federal Securities ActA federal piece of legislation enacted as a result of the market crash of 1929. The legislation had two main goals. To ensure more transparency in financial statements so investors can make informed decisions about investments, and to establish laws against misrepresentation and fraudulent activities in the securities markets.
|