A long time ago back in the 1930’s the stock market fell, and everyone thought that the golden age was over, a lot of rich people lost their money, but that wasn’t the cause of the great depression. In economics when something good or bad happens it is always because of some cause and effect relationship much of which I’m going to skip over because it is honestly, a bit boring; something drastically bad must have occurred for it to reach a point where people had to scavenge the trash for food. This is an excerpt from the diary of a woman when the depression was at its worst
”We sit looking at the floor. No one dares think of the coming winter. There are only a few more days of summer. Everyone is anxious to get work to lay up something for that long siege of bitter cold. But there is no work. Sitting in the room we all know it. That is why we don’t talk much. We look at the floor dreading to see that knowledge in each other’s eyes. There is a kind of humiliation in it. We look away from each other. We look at the floor. It’s too terrible to see this animal terror in each other’s eyes.”
The economy was going through a depression. We can think of the economy at that time like as if it were a depressed teenager, it no longer saw the point of being alive and just wanted to cut. It wasn’t very productive because it lacked the motivation to do anything and so it just sat around all day and basically didn’t give a shit about what the implications of its actions were(were not talking about a person here). This economy needed serious rehab, it got that from the government help. The first office Herbert Hoover held was president of the united states, so you could imagine how hard it may have been for him to get what he wanted in the house of representatives and he couldn’t be president at a worse r time. President Hoover tried to quell the madness by encouraging the private sector to do more in hopes stimulating the economy; it wasn’t enough. This economy’s problems were to deep-rooted. Different schemes to aid the starving poor were introduced and different systems put in place so they could earn minimum wage, for example thousands of unemployed poor were encouraged to work on construction projects in exchange for food and some wage; one of the greatest bridges in history was built-in this way : The golden gate.
There was only one way of saving the economy, and that was to hand the economy over to the government completely. So yes the depression did eventually end after many mishaps and struggles under FDR the depression did end, with a final major never before seen investment by the government that involved millions, known as world war two; which is ironic considering the fact that some critics think that it was world war one that had initially started the depression.
What could this imply? That war has the potential to start as well as end a drastic economic crisis? Well that may be so, and it may happen again. If anyone has read my article “the history of us” in it I say that we are still in the period of wars, even today we still have problems with banking reforms and we’re unsure about the future; we are yet to reach a period of civilization, the economy at a time such as that will be a perfect one.
- The Great Depression V. The Great Recession (jhss11zohairshirwani.wordpress.com)
- ‘We’re in worse shape than we were going into the Great Depression’ (marketsanity.com)