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The Great Depression

Introduction

Certain incidences in history are always remembered and considered, mainly because of the impact placed by them and the extent to which they affect the course of history. In addition, certain eras are remembered because of the influence they have on people and the part played by them in designing future, with Great Depression being one of them. It was one of those periods that changed the overall life and living conditions of people, thus causing them to deviate from their lifestyle and adopt the new ones, offered by the changing circumstances. Similar mass scale shift took place during the era of Great Depression, which would be highlighted and elaborated in the following paragraphs:

Discussion

Great Depression was actually an immense and massive tragedy that forced millions of Americans out of work, and thus marked beginning of the governmental involvement in the economy of society and in society as a whole. The world wide era of the Great Depression started in 1929 and finally ended in 1939, after a period of ten years. It is said to be the longest and thus the most influential and strong depression faced by the influenced western world, in pre World War II era.

A study of history reveals that the although the Great Depression started in the United States of America, it took the whole of western world in its wake and the result was severe decline in output of the industries. In addition, unemployment made new records in that era and there was severe deflation in almost all parts of the world. However, it should be noted that the Great Depression was not only limited to the downfall in economic life: it had social and cultural impacts as well, especially in the United States of America.

Crash of Stock Market

Western world, that was considered the hub of industrial activity and the consequent prosperity at that time, was finally subjected to downfall in 1929, when the stock market crashed. It is eminent to mention here that the event came as a surprise as this period was preceded by ten years of prosperity in the region and the day of crashing the stock marked the beginning of an era of despair and gloominess. With the passage of time, the hope for recovery declined, thus adding to the panic and dread in the society. After the great crash, all the banks that had invested in the stock market were forced to close, thus causing people to lose their savings that were invested in the stock market. The obvious result of the sudden and sever happening was: other people withdrew their money from the banks, out of the fear of losing that too, thus casing the rest of the banks to close as well and leaving the people bankrupt who's money was invested in the stock market.

The business and the industries were also not speared and they too suffered from the effects of the Great Depression and the organizations started cutting ...