The Great Depression - Essay Example

The Great Depression The Great Depression was a severe depression of the economy on a global scale that occurred in the 1930s decade and preceded the Second World War. The timeline of existence varies for different nations but its main effect was between 1930 and the late 1930s though in some countries it stretched up to the middle of the 1940s decade (Ledbetter and Daniel 1). The Great Depression served as the longest and broadest depression of the economy with the most significant effect in the 20th century. The stock market crash in 1929 commemorated the start of the depression with the value of most shares dropping significantly awakening ruins in the finances with the value of currency decreasing in collaboration with the demand for goods (Ledbetter and Daniel 3). This created a situation of limited employment and resources in the nation. This was a period full of desperation to survive among families and individuals alike. Many lived in poor conditions stricken by famine. The effect of the depression was great among the bottom group of the employment ladder as they depended on the industrial community for a living. In the years before the depression, a big part of the agricultural portion of the economy was deep in trouble (Ledbetter and Daniel 11). The course of the depression further accompanied with the Great Plains Dust Bowl of the 1930s worsened the problems and almost eliminated the sector. At the same time, the crisis response of the government at the time had limitations arising from the pressures for income at all levels of the administration. The decline in tax revenue collection furthered the problem (Ledbetter and Daniel 58). The stock market collapse forced the world trade to collapse causing the international community to adopt protective measures through imposing stiff tariffs on imported goods. This made the situation even worse as the goods were virtually impossible to purchase. The impact of this on society was devastating. By the year 1932, the industrial output of the United States was a shadow of itself having reduced by half. About 15-million people, constituting a quarter of the nation’s labor force, were not in active employment (Ledbetter and Daniel 17). The unemployed who could not afford to feed themselves, support families, and pay rent moved in with their families in apartments and houses that were crowded. Those in employment experienced deductions of up to 50 percent of their hourly wages (Ledbetter and Daniel 42). Banks failed and agricultural prices fell to the lowest point after the civil war. The unemployed had dependants and needed to pay rents and mortgages. In the end many could not cope and became homeless before moving into pitiful shantytowns called Hoovervilles developed all over the country with some sleeping under old newspapers dubbed Hoover blankets. The devastation was even greater among minority communities as it accompanied discrimination. Generally, the situation in the country at the time was depressing. Starvation traversed the nation accompanied by illness. The unemployed found it hard to feed themselves while most of them living in crowded conditions that were unhygienic (Ledbetter and Daniel 48). This deprived their immunity and made them more susceptible to infections and diseases. The situation was much worse for those living in Hoovervilles that were void of bathrooms and running water. In the years of the Great Depression, there was a large number of malnourished children due to the poor diet and lack of medical care. The Great Depression brought with it a sporadic diversity in the general sorts of behaviors of the public. The unemployed were starving and needed help which was not forthcoming from the government as it was also in a crisis at the time. At the time, the social security system was not existent. This prompted the residents of some towns to start and run their own charitable organizations to provide relief to the less fortunate. The display of generosity was through the soup kitchens established and the Bread Lines associated with them (Ledbetter and Daniel 75). The losses in earnings, unemployment, and fears of the effect that these would have on the people’s social levels devastated a large number of people with some having paranoia related acts. Statistics report that 20,000 Americans committed suicide in the year 1931 alone. This showed the despair and paranoia that had become part of the American population due to the Great Depression. During the years of the Great Depression, the crime rate in the country increased at a high rate becoming a big problem. More of the homeless and unemployed were involved in petty thefts and robberies while trying to fend for themselves and provide for their families. A large number of women in desperation turned to prostitution as a means of soliciting money to pay bills. At the time, the Prohibition Act outlawed indulgence in alcohol until its repeal on March 27, 1933 (Ledbetter and Daniel 103). However, the Great Depression increased the rate of alcoholism as people sought avenues for escape. Family structures also shifted in the years of the depression. Because of the major layoffs, many men found themselves out of work and relying on their wives to provide for their families. The women went for employment opportunities that were outside their home something initially viewed as wrong. Many men became frustrated and walked out on their families as they viewed this as a reverse in the roles. However, the depression reduced the rate of separation and divorce among married couples as this would be more costly (Ledbetter and Daniel 83). The Great depression lies among the group of event that has had an inerasable thumbprint on the United States. The handling of finances in case of a downturn in the economy in the United States today relies on experiences from the events of the depression. A saving and frugality culture developed among the people who had lived through the depression (Ledbetter and Daniel 224). The depression provides a reference for the areas that if ignored during an economic downturn would propagate the effect. The depression provided insight into the problems of an economic failure and resulted in shaping of many modern theories in economics. The relationship between the citizens and the American government changed forever in the years of the depression. The view that the government should be involved as well as take responsibility for caring for needy citizens, crisis management, and regulation of the economy became a common belief in the population. The great depression also had an unforgettable impression in the history of the United States in the form of the policies drafted by the government at the time to deal with the crisis. The major policy is the Social Security in Article 22 that charges the government with protecting the social, economic, and cultural rights of every citizen through social services, insurance, and basic security (Ledbetter and Daniel 158). The stimulus packages and Keynesian economics policies are also a result of the depression. President Hoover’s underestimation of the depression is regarded as the key factor that drove the depression. As a result, more focus shifted the economics of the country. The Great Depression that ran from 1929 to 1941 was a crisis that traversed the globe as a whole as well the individual nations. In the United States the effect of the depression were severe and affected the economy of America for several decades. The depression is an important part of understanding the American history and it served as a lesson for future generations on improvements to make in the finance industry. Work cited Ledbetter, James, and Daniel B. Roth. The Great Depression: A Diary. New York: Perseus Books Group, 2009. Internet resource. Read More