What Is the Great Depression?
The Great Depression was a time of severe economic (related to money and resources) hardship that affected millions of people in the United States and around the world. It lasted from 1929 to the early 1940s. A depression is a long period of economic struggle, where many people lose jobs, businesses close, and it becomes very difficult to make money. The Great Depression began when the economy, which looked strong in the 1920s, turned out to be fragile and fell apart after the stock market crash of 1929.
The Roaring 1920s and Mistakes That Led to the Great Depression
The 1920s, known as the “Roaring Twenties,” were a time of growth, new technology, and excitement. People bought cars, radios, and appliances, often on credit (borrowing money to pay later). Many also borrowed money to invest in the stock market (a place where people buy and sell shares of companies). These habits made the economy seem strong, but it was actually unstable. When the stock market crashed in 1929, people lost everything, and the debts (money owed) they had became impossible to pay back.
Bank Runs and Failing Banks
After the stock market crash, people panicked. Many rushed to withdraw their money from banks, leading to what’s called a “bank run” (when many people take their money out of banks at the same time). Banks didn’t have enough cash to give to everyone, so many went out of business. People who had kept their savings in these banks lost all their money.
President Hoover and Hoovervilles
Herbert Hoover was president when the Great Depression began. He believed the economy would fix itself without government help, so he offered very little assistance. Many people who lost their homes built small, makeshift shelters, often poorly constructed from scrap materials, known as “Hoovervilles.” These were named after Hoover as a way to mock him for not doing enough to help.
The Dust Bowl
In the 1930s, a severe drought (a long period without rain) hit parts of the Midwest. Without rain, the soil dried up, and strong winds blew it away, creating massive dust storms. This region became known as the “Dust Bowl.” Farmers in the Dust Bowl lost their crops, homes, and jobs, which made the Great Depression even worse.
Life for the Average American Family
Families struggled to survive during the Great Depression. Many people couldn’t find work, and food and shelter were hard to come by. Some children had to leave school to help their families. People lined up at “soup kitchens” (places where people could get free meals) for food. Life was hard, and most people faced daily challenges.
President Franklin D. Roosevelt and the New Deal
In 1933, Franklin D. Roosevelt, or FDR, became president. He started a series of programs called the “New Deal” to help Americans. The New Deal created jobs, built roads and buildings, and provided financial support to those in need. While it didn’t fully end the Depression, the New Deal improved people’s lives and gave them hope.
World War II and the End of the Great Depression
When World War II started in 1939, the economy began to recover. The war created millions of jobs as factories made supplies for soldiers, which boosted the economy. This production helped end the Great Depression and brought a time of growth.
The Great Depression was a tough time that changed how Americans saw money, jobs, and the government’s role in helping people.