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from 1921 to 1929 the stock market expanded and prices were beyond what they were worth a recession hit late summer 1929
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October 1929 the stock market hits a freefall. there is a frenzy to sell stocks which worsens the damage. banks start to go out of business due to stockholders not being able to pay back loans. this crash marked the start of the great depression. -
The first of four banking panics begins. A banking panic occurs when people who had deposited their money in banks lose confidence in the security of the banks and withdraw their cash. The United States experiences three more banking panics, in the spring of 1931, in the fall of 1931, and in the fall of 1932. This last panic continues through the winter of 1933. -
Poor land management of the great plains region (Colorado, Kansas Texas Oklahoma and New Mexico) caused severe drought and devastating dust storms. this made growing food nearly impossible it made air difficult to breathe and worsened the depression
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During the Great Depression many homeless people had to build their own shelters out of whatever materials they could find. Shantytowns, or clusters of these shelters, sprang up. These towns were also known as Hoovervilles, named after U.S. President Herbert Hoover.
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Hoover signs the Smoot-Hawley Tariff Act against the advice of leading economists. The Smoot-Hawley Tariff Act raises taxes on imports in an effort to protect businesses and farmers by reducing foreign competition. The new tariffs prompt a backlash by foreign governments. -
In the 1932 U.S. presidential election Hoover loses to Democratic challenger Franklin D. Roosevelt. Roosevelt wins with an overwhelming majority, carrying 472 electoral votes to Hoover’s 59 electoral votes. -
unemployment was at 25%, wholesale prices had dropped 30%, 1/5 of banks in existence had shut down. -
Recovery in the United States begins. President Roosevelt’s New Deal establishes programs, such as the Works Progress Administration (WPA) and the Civilian Conservation Corps (CCC), to provide federal aid and temporary jobs. Other agencies are established to revitalize business and agriculture. Financial regulatory agencies, such as the Federal Deposit Insurance Corporation (FDIC) and the Securities and Exchange Commission (SEC), are also created.
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President Roosevelt takes immediate action once in office and declares this day as national bank holiday, which closes all banks until they are declared secure by government agencies. -
The United States is hit with another severe economic downturn due to spending reduction decreasing demand
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After the 1937–38 recession the U.S. economy gets back on a recovery path, and production finally returns to its predepression numbers by 1942.
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the depression ended with the start of world war 2 because war brings a lot of jobs