Great Depression Effects
Many times throughout history the United States has undergone
economic
depression. The most recognized period of economic depression is
called the
Great Depression. The Great Depression is well known because
of the seriousness
of the stock market crash. The results of the crash were
more serious than any
other crash throughout American History. The Great
Depression caused a change in
the nature of the American family, an increase
in poverty, and President Herbert
Hoover's proposal for immediate action
by the government, balanced his belief in
"rugged individualism" with the
economic necessities. While most
Americans are familiar with the Great
Depression as a time of economic disaster,
it also had an impact on the
American Family life. There were obvious
differences in the classes as a
result of the Great Depression. The lower and
the middle classes changed
considerably, but the upper class lifestyle did not
vary a great deal.
(Simmons 41) The father's role as head of the household
became more
challenging because there were fewer jobs. The expectation was for
fathers to
work and support their families. The reality of the lower class was
that few
men brought home paychecks. Some fathers suffered anxiety and a feeling
of
worthlessness for failing to provide for their families. Many resorted
to
stealing food and money just to survive. (Simmons 41) Women were offered
greater
opportunities in the work force, however they tended to take the
position of
stay-at-home mothers. According to Simmons "Men resented employed
women for
they felt that they were occupying jobs that could be given to
unemployed
men."(Simmons 43) Children in the lower class were expected to get
an
education so that they could improve their situation. In addition they
were
needed at home to help with household chores. Unfortunately, many poor
children
dropped out of school because of their obligations at home. Children
in the
middle class were better than those in the lower class. They had the
opportunity
to stay in school and were treated to some luxuries. The children
of the upper
class families received an excellent education and were treated
to many
luxuries. (Simmons 42-43) Along with a change in the American family
life, there
was also an increase in poverty. The Great Depression was an
intense time of
poverty. The downfall of American businesses, the closing of
banks, and the
lowered employment contributed to this period of destitute.
According to an old
study "26,000 American businesses collapsed; in 1931,
28,000 more met the
same fate. And by the beginning of 1932, nearly 3,500
banks, holding billions of
dollars in uninsured deposits, had gone under.
Twelve million people were
unemployed (nearly 25 percent of the workforce),
and the real earnings for those
still lucky enough to have jobs fell by a
third" (Internet). This
statistical evidence effectively illustrates the
increase in poverty caused by
the Great Depression. An additional result of
the Great Depression was that
President Hoover balanced his belief of
"rugged individualism" with
the economic necessities of the time by proposing
direct action by the
government. Hoover had only been in office for eight
months when the stock
market crashed. At first he treated this financial
disaster and decline in
employment and business that followed the Great
Depression as a panic. According
to The American Pageant "He was accused of
saying, yet did not use these
precise words, that prosperity was just around
the corner" (Bailey 776). As
the depression got worse Hoover became more and
more concerned about the
troubles of Americans. Hoover refused to agree with
the request of the Democrats
in Congress, who wanted the government to
distribute money to the unemployed.
"...[Hoover] as a "rugged individualist"
deeply rooted in an
earlier era of free enterprise, shrank from the heresy of
government handouts.
Convinced that industry, thrift, and self-reliance
were the virtues that made
America great, President Hoover felt that a
government doling out doles would
weaken, perhaps destroy the national
fiber..."(Bailey 776). However,
President Hoover "would assist the
hard-pressed railroads, banks, and rural
credit corporations, in the hope
that if financial health were restored at the
top of the economic pyramid,
unemployment would be relieved at the bottom on a
trickle-down basis" (Bailey
777). In order for Hoover to do so he
introduced The Reconstruction Act. This
Act was created to prepare emergency
financing for banks, insurance
companies, and other companies. The Glass-Steagall
Act used government
gold reserves to help industry. The Federal Home Loan Bank
Act created
discount banks to help refinance homes and prevent foreclosures.
Hoover
also wanted the reform of bankruptcy laws to help in the reconstruction
of
businesses. He supported a loan of $300 million to states for direct
relief,
expansion of public works, and cutbacks in the federal government. By
proposing
this act President Hoover was not giving up his belief in
"rugged
individualism. He was not supporting the Democrats' calls for
increased welfare.
Instead he was providing better access to loans and
financing so that Americans
could help themselves. Although his actions did
stop increased destruction from
occurring, he did not get the credit he
deserved. (Simmons 46-49) The Great
Depression had an enormous effect on
American life. It effected family life by
altering the status of the family
members. Poverty increased as seen through the
number of collapsed American
businesses, closed banks, and lowered employment
rates. President Hoover
balanced the economic needs of the country with his
personal belief in
"rugged individualism." He proposed a series of
acts to address these
economic needs including the Reconstruction Act, the
Stealgal Act, and
the Federal Home Loan Bank Act.
Bibliography
Effects of the Great
Depression Many times throughout history the United States
has undergone
economic depression. The most recognized period of economic
depression is
called the Great Depression. The Great Depression is well known
because of
the seriousness of the stock market crash. The results of the crash
were more
serious than any other crash throughout American History. The
Great
Depression caused a change in the nature of the American family, an
increase in
poverty, and President Herbert Hoover's proposal for immediate
action by the
government, balanced his belief in "rugged individualism" with
the
economic necessities. While most Americans are familiar with the
Great
Depression as a time of economic disaster, it also had an impact on
the American
Family life. There were obvious differences in the classes
as a result of the
Great Depression. The lower and the middle classes
changed considerably, but the
upper class lifestyle did not vary a great
deal. (Simmons 41) The father's role
as head of the household became more
challenging because there were fewer jobs.
The expectation was for
fathers to work and support their families. The reality
of the lower class
was that few men brought home paychecks. Some fathers
suffered anxiety and a
feeling of worthlessness for failing to provide for their
families. Many
resorted to stealing food and money just to survive. (Simmons 41)
Women
were offered greater opportunities in the work force, however they tended
to
take the position of stay-at-home mothers. According to Simmons "Men
resented
employed women for they felt that they were occupying jobs that could
be
given to unemployed men."(Simmons 43) Children in the lower class
were
expected to get an education so that they could improve their situation.
In
addition they were needed at home to help with household chores.
Unfortunately,
many poor children dropped out of school because of their
obligations at home.
Children in the middle class were better than those
in the lower class. They had
the opportunity to stay in school and were
treated to some luxuries. The
children of the upper class families received
an excellent education and were
treated to many luxuries. (Simmons 42-43)
Along with a change in the American
family life, there was also an increase
in poverty. The Great Depression was an
intense time of poverty. The downfall
of American businesses, the closing of
banks, and the lowered employment
contributed to this period of destitute.
According to an old study
"26,000 American businesses collapsed; in 1931,
28,000 more met the same
fate. And by the beginning of 1932, nearly 3,500 banks,
holding billions of
dollars in uninsured deposits, had gone under. Twelve
million people were
unemployed (nearly 25 percent of the workforce), and the
real earnings for
those still lucky enough to have jobs fell by a third"
(Internet). This
statistical evidence effectively illustrates the increase in
poverty caused
by the Great Depression. An additional result of the Great
Depression was
that President Hoover balanced his belief of "rugged
individualism" with the
economic necessities of the time by proposing
direct action by the
government. Hoover had only been in office for eight months
when the stock
market crashed. At first he treated this financial disaster and
decline in
employment and business that followed the Great Depression as a
panic.
According to The American Pageant "He was accused of saying, yet did
not use
these precise words, that prosperity was just around the corner"
(Bailey
776). As the depression got worse Hoover became more and more concerned
about
the troubles of Americans. Hoover refused to agree with the request of
the
Democrats in Congress, who wanted the government to distribute money
to the
unemployed. "...[Hoover] as a "rugged individualist" deeply
rooted
in an earlier era of free enterprise, shrank from the heresy of
government
handouts. Convinced that industry, thrift, and self-reliance were the
virtues
that made America great, President Hoover felt that a government doling
out
doles would weaken, perhaps destroy the national fiber..."(Bailey
776).
However, President Hoover "would assist the hard-pressed railroads,
banks,
and rural credit corporations, in the hope that if financial health
were
restored at the top of the economic pyramid, unemployment would be
relieved at
the bottom on a trickle-down basis" (Bailey 777). In order for
Hoover to do
so he introduced The Reconstruction Act. This Act was created to
prepare
emergency financing for banks, insurance companies, and other
companies. The
Glass-Steagall Act used government gold reserves to help
industry. The Federal
Home Loan Bank Act created discount banks to help
refinance homes and prevent
foreclosures. Hoover also wanted the reform of
bankruptcy laws to help in the
reconstruction of businesses. He supported a
loan of $300 million to states for
direct relief, expansion of public works,
and cutbacks in the federal
government. By proposing this act President
Hoover was not giving up his belief
in "rugged individualism. He was not
supporting the Democrats' calls for
increased welfare. Instead he was
providing better access to loans and financing
so that Americans could help
themselves. Although his actions did stop increased
destruction from
occurring, he did not get the credit he deserved. (Simmons
46-49) The
Great Depression had an enormous effect on American life. It effected
family
life by altering the status of the family members. Poverty increased as
seen
through the number of collapsed American businesses, closed banks,
and
lowered employment rates. President Hoover balanced the economic needs of
the
country with his personal belief in "rugged individualism."
He
proposed a series of acts to address these economic needs including
the
Reconstruction Act, the Stealgal Act, and the Federal Home Loan Bank
Act.