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----------------- 1929------------------------Stock Market Crash nervous investors began selling overpriced shares en masse. A record of
12.9 million shares were traded, which known as black thursday.
Due to expansion of stock market, production had declined and unemployment had risen,
leaving stock prices much higher than their actual value. Also, wages were low, agricultural
sector of the economy were struggling due to drought and banks had an excess large of loans
that could not be liquidated.
The downturn in spending and investment led factories and other businesses to slow down
production and beginning firing of works.
---------------1930 - -----------------------By 1930, four million workers couldn't a job;
Dust bowl name given to the dought-stricken in US which suffered dust storms during dry
periods. It causes economic and agricultural factor, federal land policies, changes in regional
whether, farm economics and cultural factors. In effect, 35million acres of formerly cultivated
land have been useless for farming. 2.5 million migrated from farmland to cities in research of
work. Many people experience of poverty and hunger.
Bank Run - first of four waves of banking panics began, as large numbers of investors lost
confidence in solvency of their banks and demanded deposits in cash, forcing banks to liquidate
loans in order to supplement their insufficient cash reserves on hand
----------------1931------------------------------6 million people are unemployed
Bank runs continue to swept in US
Hoover's administration support failing banks and other institutions with government loans; the
idea was that the bank in turn would loan to businesses, which would be able to hire back their
employees.
-----------------1932------------------------------15 million people are unemployed
Bank runs continue to swept in US
Franklin Roosevellt won the presidential election
------------------1933 ----------------------------U.S state ordered all remaining banks to close and the US treasury did not have enough cash to
pay all government workers.
Roosevelt reform the financial system creating Federal Deposit Insurance System (FDIC) to
protect depositor's accounts and the Securities and Exchange Commission (SEC) to regulate
the stock market.
New Deal - aided in recovery from the Great Depression were Tennessee Valley Authority
(TVA) which builts dams and hydroelectric projects to control flooding and provide electric
power to valley.
------------------1935--------------------------------Works Progress Administration (WPA) , a permanent jobs that employed 8.5 million people.
Congress passed the Social Security Act which provided Americans with unemployment,
disability and pensions for old age.
The economy continued to improve throughout the next three years which GDP(adjusted for
inflation) grew at an average rate of 9% per year.
----------------------1937-----------------------------------a sharp recession hit in this year caused by the Federal Reserve's decision to increase its
requirements for money in reserve.
----------------------1938-----------------------------------Second severe contraction reversed many of the gains in production and employment and
prolonged the effects of the Great Depression through the end of the decade.
----------------------1939------------------------------------Adolf Hitler's Nazi Regime in Germany fueled the rise of extremist political movements in
European countries which continue the depression-era hardships
----------------------1940-----------------------------------26 states placed restrictions on their employment which wives were perceived as taking away
jobs from able-bodied men, even if in practice, they were occupying jobs men would not want
and doing them for far less pay.
-----------------------1941-----------------------------------Roosevelt support the producing of more private sector jobs.
The Japanese attack on Pearl Harbor led to America's entry to WWII, factories went back in full
production mode.
-------------------------1942----------------------------------The expanding industrial production, as well as widespread conscription reduced the
unemployment rate to below its pre-depression level.
The Great Depression ended because US turned its attention to WWII
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