The Great Depression Great Depression During the 1930s

The Great Depression

Great Depression During the 1930’s, much of the world faced harsh economic conditions. Many people were out of work, hungry, or homeless. This period is called the Great Depression. It started in the United States, but it quickly spread throughout the world.

Effects in the United States In September 1929, people’s business investments started to decrease in value. People started to lose money very quickly.

Effects in the United States Many people lost all the money they had. Banks were hurt as well. People who had borrowed money from banks were unable to pay it back. Many banks failed because crowds of people tried to take out all their money at once. When a bank failed, people with accounts there lost their savings.

Effects in the United States Factories and businesses closed because not enough people were able to buy the goods they produced or sold.

Effects in the United States By 1932, about 12 million people were out of work. People with jobs were paid only about half of what they had earned before.

Effects in the United States Dry weather in the Great Plains made things even worse for farmers. They could not grow enough crops to sell. The land was so dry that it was called the Dust Bowl.

End of the Great Depression In 1932, we got a new president, Franklin D. Roosevelt. He made a program called the New Deal. The New Deal put some people back to work right away. It also changed the financial (banking and money) system to prevent the same problems from happening in the future.

End of the Great Depression The Great Depression ended in the United States only after the country entered World War II in 1941. Factories began to produce weapons, airplanes, ships, and other products necessary for the war effort. Many people were then able to get jobs.