Starving the Hungary

This essay Starving the Hungary has a total of 1780 words and 5 pages.

Starving the Hungary
Though most Americans are aware of the Great Depression of 1929, which may well be the most serious problem
facing our free enterprise economic system, few know of the many Americans who lost their homes, life savings and
jobs. This paper briefly states the causes of the depression and summarizes the vast problems Americans faced
during the eleven years of its span. This paper primarily focuses on what life was like for farmers during the time of
the Depression, as portrayed in John Steinbeck\'s The Grapes of Wrath, and tells what the government did to end the
Depression.
In the 1920\'s, after World War 1, danger signals were apparent that a great Depression was coming. A major cause
of the Depression was that the pay of workers did not increase at all. Because of this, they couldn\'t afford
manufactured goods. While the factories were still manufacturing goods, Americans weren\'t able to afford them and
the factories made no money (Drewry and O\'connor 559).
Another major cause related to farmers. Farmers weren\'t doing to well because they were producing more crops and
farm products than could be sold at high prices. Therefore, they made a very small profit. This insufficient profit
wouldn\'t allow the farmers to purchase new machinery and because of this they couldn\'t produce goods quick
enough (Drewry and O\'connor 559).
A new plan was created called the installment plan. This plan was established because many Americans didn\'t have
enough money to buy goods and services that were needed or wanted. The installment plan stated that people could
buy products on credit and make monthly payments. The one major problem with this idea was that people soon
found out that they couldn\'t afford to make the monthly payment(Drewry and O\'connor 559).
In 1929 the stock market crashed. Many Americans purchased stocks because they were certain of the economy.
People started selling their stocks at a fast pace; over sixteen million stocks were sold! Numerous stock prices
dropped to fraction of their value. Banks lost money from the stock market and from Americans who couldn\'t pay
back loans. Many factories lost money and went out of business because of this great tragedy (Drewry and O\'connor
352).
By the 1930\'s, thirteen million workers lost their jobs which is 25 percent of all workers. The blacks and unskilled
workers were always the first to be fired. Farmers had no money and weren\'t capable of paying their mortgag

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