World has seen a great depression when the economy of the world collapsed. The companies when bankrupted and many fake shares were sold. Rich grew poor and poor grew very rich. Today many financial experts say that the great depression was due to the poor management and poor regulations in the financial markets. Some say that depression happened due to the financial derivatives that were unregulated. Whatever the reason may be, but the economy of the world that we see today took rebirth after the great depression. The more detailed facts of great depression are given below.
1. The Then President
Hoover was the president of US when great depression stroke US economy in 1930. He said that the economy will sort it out but the worst was yet to come when in 1939 WWII broke out.
2. Wall Street Crash
In 1929, Wall Street was crashed and from here started the downfall of the economy. Black Thursday, black Monday and black Tuesday are correct terms to be used for the crashing economy on these days. The worst of the crash happened in Wall Street on Tuesday.
3. Black Tuesday
Black Tuesday is still remembered by the financial experts and economists because on 2th October, 1929 Wall Street lost 14 billion dollars leaving the weekly loss up to 30 billion dollars. This loss was 10 times more than the then annual federal budget.
4. Suicides
After the initial crash of stock markets, US witnessed the most number of suicides on that period alone. It is said that the hotel clerks used to ask the new arrived guests that whether they need room to sleep on to jump. It indeed changed the world upside down for many people.
5. The Depression Caused By The Depression
That period was the most depressing for people of US. One farmer cut throats of his 3000 sheep because he thought that it would be a lot easier than seeing his sheep dying for hunger and starvation.
6. Rate Of Joblessness
During the worst years of depression from 1933 to 1934, the total rate of unemployment was 25% i.e. 1 out of four people was jobless. This fell back to 10% after the WWII way back.
7. Three Little Pigs
The movie was released on May 27, 1933 by Walt Disney. The movie had a wolf and three pigs. The wolf depicted the depression killing the people while pigs depicted the US nationals, the average people.
8. Chain Letters
Chain letters began in 1935 to circulate with saying to become rich quickly. The origin of the chain letters is still not known. ut the post offices of that time had to hire people to get extra help as the chain letters were too many in number to handle by the normal staff.
9. African Americans
The badly hit people during the great depression were the African Americans because they were the first to be laid off when the companies need to do layoffs to cut the expenses.
10. Farm Loss
Between 1930 to 1935, 750,000 farms were lost due to the worst financial conditions.