Great Depression

The Great Depression was a worldwide economic decline in 1930's. It was the most difficult and longest period of unemployment and low business activity in modern times. The Depression began in October 1929, when the stock values dropped very quickly. Many stockholders lost large amounts of money. Banks, factories, and stores closed and left millions of Americans jobless and penniless. Most families had to depend on charity to provide food.

When the Depression began Herbert Hoover was the President and in 1932 Franklin D. Roosevelt was elected President. Roosevelt's reforms gave the Government more power and helped ease the depression.

The Depression caused a very sharp decrease in world trade because each country raised taxes on imported goods trying to help their own industries. The depression caused some countries to change their type of government and their leader.

The stock market crash occurred

from 1925 to 1929. During this period the price of common stocks on the New York Stock Exchange more than doubled. When stock values rose it encouraged many people to buy stocks hoping to make large profits following the future price increases.

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