The Great Depression: a Life-changing Event

On October 29, 1929, the Great Depression began, changing the world forever. It affected countless lives, as people could no longer afford food, and daily living became a struggle. By 1933, approximately 13 to 15 million Americans were unemployed (A&E Networks). The many Americans affected by these events faced incredibly hard times. There were several causes of the Great Depression, including the stock market crash, bank failures, and the Dust Bowl.

The Stock Market Crash: The Beginning of the Downfall

A financial boom began in August 1921, with the Dow Jones Industrial Average (DJIA) increasing sixfold, from 63 to 381 in September 1929 (K. A. Richardson Gary). However, the stock market crash that followed ruined many people's investments and essentially started the Great Depression.

How Stocks Work

Stocks represent part ownership in a company. When people buy stocks, they essentially own a part of the company. If the stock prices are high, it indicates that the company and the economy are doing well. If the stock prices drop, it means the company is struggling, and profits decline.

The stock market crash occurred during Herbert Hoover's presidency, making him quite unpopular. Poverty, which had been prevalent in the prosperous 1920s, became widespread again (E. A. Arnesen). The crash caused businesses to close, and the collapse in consumer wealth had a spiraling effect. Even after the Depression ended, the scars remained for many Americans. The stock market crash was just one of the many factors contributing to the Great Depression.

Changing Lifestyles: Adapting to Survive

Many families had to drastically change their lifestyles. They started growing their own food in gardens and ate whatever they could find. Men were forced to take menial jobs that paid far less than their previous positions.

Effects on Families

• Families grew food in gardens.
• Men took low-paying jobs.
• Many families went hungry due to food shortages.
• The hardships of the Depression led to many deaths.

While World War II eventually brought about a boom in construction jobs, many families still struggled to survive the Depression. The American dream seemed out of reach for many, but today, we can be grateful for being in a better position than during the Great Depression.

Bank Failures: Another Cause of the Great Depression

One of the key causes of the Great Depression was the failure of banks. Many banks collapsed, snowballing into further economic challenges, such as unemployment. Peter Tamerin suggests that falling farm incomes contributed to the rise in bank failures (Stauffer). In agricultural regions, bank failures were high due to declining cotton sales.

Causes of Bank Failures

• Lower farm incomes.
• Banks not belonging to the Federal Reserve lacked reserve money.
• People rushed to withdraw their life savings, leading to closures.

Over 8,000 banks that were not part of the Federal Reserve system closed, further exacerbating unemployment across the country.

The Dust Bowl: Natural Disaster Worsens the Crisis

Another contributing factor to the Great Depression was the severe drought conditions known as the Dust Bowl. Lack of rain and dust storms severely impacted the agricultural sector. Richard Hornbeck notes that the Dust Bowl "substantially and persistently reduced land values" (Richard). The combination of wind and water erosion worsened conditions, as storms stripped away the topsoil across the plains.

Impact of the Dust Bowl

• Farmers lost their crops due to poor land quality.
• Millions of people migrated to California.
• "Okies" brought their culture, politics, and music to California.

By 1940, more than 2.5 million people had moved from the Dust Bowl regions, with 10% of the population migrating to California (A&E Networks). These families, often called "Okies," brought with them their unique culture, which influenced future generations.

Conclusion: Lessons from the Great Depression

The Great Depression was not caused by one factor but by many, including the stock market crash, bank failures, and the Dust Bowl. These events changed the world, leading to new banking regulations and better farming practices to prevent future disasters. While another depression could happen, we have learned from the past, and today, America is a strong nation.

If we work together, we can ensure a prosperous future for all, with a booming economy that benefits everyone.