Black Tuesday
Black Tuesday took place on October 29, 1929 when the stock prices completely fell. Black Tuesday was the result of the sudden decline in real estate prices. When real estate peaked, prices naturally began to fall. Borrowers borrowed lots of money from banks with the plan to buy land, sell it for twice what they paid for it, then pay off their loans. When prices began to fall, they were forced to sell their land for less than what they paid for it. Banks then lost their money and with real estate's direct connection to the economy, the natural result was the failure of the stock market.
Black Tuesday took place on October 29, 1929 when the stock prices completely fell. Black Tuesday was the result of the sudden decline in real estate prices. When real estate peaked, prices naturally began to fall. Borrowers borrowed lots of money from banks with the plan to buy land, sell it for twice what they paid for it, then pay off their loans. When prices began to fall, they were forced to sell their land for less than what they paid for it. Banks then lost their money and with real estate's direct connection to the economy, the natural result was the failure of the stock market.
Unemployment
Unemployment rates skyrocketed to 25% from 3.2% during the Great Depression. This massive increase in unemployment was caused by the downfall of the economy and the failure of businesses. America was producing tons of products and had to stop because nobody could afford to buy them anymore. This means employers were losing money and couldn't afford to pay their workers anymore. People were forced to live in Hoovervilles. That is, communities of shacks and tents with no structure and not much sanitation.
Unemployment rates skyrocketed to 25% from 3.2% during the Great Depression. This massive increase in unemployment was caused by the downfall of the economy and the failure of businesses. America was producing tons of products and had to stop because nobody could afford to buy them anymore. This means employers were losing money and couldn't afford to pay their workers anymore. People were forced to live in Hoovervilles. That is, communities of shacks and tents with no structure and not much sanitation.
The New Deal
Franklin D. Roosevelt was elected into office in 1933. During his campaign, he promised a New Deal. The New Deal initiated several programs to try to end the Great Depression. One program was the Farm Security Administration program of 1937. The FSA gave out loans that farmers could use to buy needed farm supplies. Another program was the Tennessee Valley Authority program of 1933. The TVA program was used to bring order and modernization in natural resources and energy industries in Tennessee and surrounding states. Another program was the Works Progress Administration program that was used to issue jobs to over 8.5 million people in fields such as construction and art programs. These are just examples of some of the New Deal programs and even though they all sound like they would work to end the Great Depression, the New Deal failed.
Franklin D. Roosevelt was elected into office in 1933. During his campaign, he promised a New Deal. The New Deal initiated several programs to try to end the Great Depression. One program was the Farm Security Administration program of 1937. The FSA gave out loans that farmers could use to buy needed farm supplies. Another program was the Tennessee Valley Authority program of 1933. The TVA program was used to bring order and modernization in natural resources and energy industries in Tennessee and surrounding states. Another program was the Works Progress Administration program that was used to issue jobs to over 8.5 million people in fields such as construction and art programs. These are just examples of some of the New Deal programs and even though they all sound like they would work to end the Great Depression, the New Deal failed.
Resolution
The end of the Great Depression finally came when the United Stated entered World War II. Upon entering the war, America had to amp up production of war supplies to send overseas to our troops. This created many new jobs and lowered the unemployment rate tremendously. America was making so many supplies, that we shared with other countries and this helped to boost our economy.
The end of the Great Depression finally came when the United Stated entered World War II. Upon entering the war, America had to amp up production of war supplies to send overseas to our troops. This created many new jobs and lowered the unemployment rate tremendously. America was making so many supplies, that we shared with other countries and this helped to boost our economy.