The Great Depression

The Great Depression was the worst economic downturn the United States has ever seen. Prompted by the stock market crash of October 24, 1929, the Great Depression would last until 1939. The decade following the crash saw the rapid decrease of international trade, consumer spending, and the failure of nearly half the country’s financial institutions. The preceding decade known as the Roaring Twenties was characterized by the rapid expansion of the economy during which time many individuals placed their savings into stocks. By 1929 decreased industrial production and increased unemployment had pushed stock prices well above their actual value.

1929 - 1939

Migrant Mexican children in a camp during harvest in Nipomo, Calif. (Library of Congress)

Compounding the issue were massive amount of consumer debuts held by banks that could not liquidate. [1] On what has gone down in history as Black Thursday and Black Tuesday, terrified consumers began flooding the marketing with a record 18.9 and million overpriced shares that crashed the market. Unemployment continued to rise, many companies were forced to shut their doors, and many became homeless, casting a hopeless gloom over the country. It was not until WWII, specifically the attack on Pearl Harbor in December of 1941 the U.S. economy began to get back on its feet. The entrance of the U.S. into the war created new jobs that helped the economy stabilize. [2]

Finding Freedom

The Great Depression greatly restricted the freedoms of U.S. citizens. Without economic resources, individuals were unable to travel as they once need and the U.S. had diminished ability to engage in the foreign market. This sparked the implementation of Social Security and the Gold Standard which joined countries around the world in a fixed currency exchange. These new programs aimed to protect the U.S. against another economic disaster and changed our foreign economic policy forever.

During the Great Depression, President Hoover had implemented a program to find “American jobs for real Americans.” This program aimed to deport Mexicans and replace their labor with American workers. This program included local laws forbidding employers from hiring any individual from Mexican descent. Even the major railroad companies colluded with the government laying off thousands of workers. Mexicans were seen as the scapegoat for America’s poor economy. [3]

Relatives and friends wave goodbye to a train carrying 1,500 people being expelled from Los Angeles to Mexico on Aug. 20, 1931. (N.Y. Daily News archive/Getty Images)

Bibliography

Editors, H. (2009, October 29). Great Depression History. Retrieved from https://www.history.com/topics/great-depression/great-depression-history
Great Depression. (n.d.). Retrieved from https://www.econlib.org/library/Enc/GreatDepression.html
Depression and the Struggle for Survival. (n.d.). Retrieved from https://www.loc.gov/teachers/classroommaterials/presentationsandactivities/presentations/immigration/mexican6.html