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http://www.thegreatdepression.co.uk/effects-on-america/
The Great Depression badly affected the American people because there wasn’t a welfare system for unemployed workers. Between 1929 and 1933 money income fell 53% and as a result, demand fell considerably. This led to lower levels of production and an unemployment rate of 25% by 1933.
The Great Depression did not plunge the USA into instant poverty but it did affect everyone in the country and particular the unemployed. Even those who had jobs were unsure of the future and may have had their wages or working hours cut.
Excessive credit powered the economy in the 1920’s and so during the great depression credit availability began to tighten and loans were called in. Consumers who had taken advantage of the credit during the 1920’s found themselves unable to make monthly payments. Therefore repossessions of houses, cars, household goods, and furniture became common.
Consumers who had taken advantage of credit sometimes were unable to meet the monthly payment and repossession of automobiles, furniture and household goods became common.
Even the rich did not escape the effects of The Great Depression. Many had substantial investments in the stock market and losses varied depending on how those investments were structured. However, some of the richest families, like the Kennedy family, were virtually unaffected by the great depression. But many found their fortunes wiped out, literally overnight, in the crash.
Automobile sales also fell dramatically. In an attempt to encourage sales, General Motors used adverts built around the idea that “one car sale would keep a worker employed for another 3 months”. However not many people had the money to go out and buy new cars during the great depression and those that did had little interest in buying a car simply to a keep a worker employed.
The Great Depression badly affected the American people because there wasn’t a welfare system for unemployed workers. Between 1929 and 1933 money income fell 53% and as a result, demand fell considerably. This led to lower levels of production and an unemployment rate of 25% by 1933.
The Great Depression did not plunge the USA into instant poverty but it did affect everyone in the country and particular the unemployed. Even those who had jobs were unsure of the future and may have had their wages or working hours cut.
Excessive credit powered the economy in the 1920’s and so during the great depression credit availability began to tighten and loans were called in. Consumers who had taken advantage of the credit during the 1920’s found themselves unable to make monthly payments. Therefore repossessions of houses, cars, household goods, and furniture became common.
Consumers who had taken advantage of credit sometimes were unable to meet the monthly payment and repossession of automobiles, furniture and household goods became common.
Even the rich did not escape the effects of The Great Depression. Many had substantial investments in the stock market and losses varied depending on how those investments were structured. However, some of the richest families, like the Kennedy family, were virtually unaffected by the great depression. But many found their fortunes wiped out, literally overnight, in the crash.
Automobile sales also fell dramatically. In an attempt to encourage sales, General Motors used adverts built around the idea that “one car sale would keep a worker employed for another 3 months”. However not many people had the money to go out and buy new cars during the great depression and those that did had little interest in buying a car simply to a keep a worker employed.