As very little, to begin with, became completely broke

As a result of the Great Crash, all people became poorer, banks closed, and the United States segwayed out of a recession into a depression. When the markets crashed, the poor who had very little, to begin with, became completely broke and the wealthy became just as poor. The wealthy, having spent a vast majority of their money on frivolous things were unable to pay their loans to the bank. They had to cash in their life savings and were forced to sell their businesses in an attempt to pay off their extensive debts. Many consumers lost their money because banks had invested it without their knowledge. They were able to do this because of the lack of regulations. Confidence began to deteriorate at a quick rate. As a result of businesses and factories closing, unemployment rates skyrocketed (Anonymous). “During the twenties, there was an average of 70 banks failing per year. After the crash during the first 10 months of 1930, 744 banks failed – 10 times as many,” (Bank Failures). It is estimated about 9,000 banks closed in the decade following the Stock Market Crash of 1929.  This was not even the worst to come, as this was the predecessor to Great Depression. While the crash was not the main cause of the Depression, it still played a role in leading up to it. In the official period of the Depression, 1929-1939 even more problems began to arise. The failure of American markets triggered the failing of markets of all the Western countries. The Great Depression impacted the entire world. Those who were able to keep their jobs experienced dramatic pay cuts. Majority of the country was starving and impoverished at this point. Farmers’ crop prices had dropped even more. Shantytowns arose because citizens were unable to pay their rents and mortgages. In an attempt to revamp its markets, the United States went to collect the loans they provided their allies, France and Great Britain, during WWI. Neither of which had the means to pay back the U.S., so they sought reparations from Germany who already was experiencing their own depression. President Hoover took action and embraced government involvement too little too late, gaining him extreme unpopularity because of his minimal help. In 1932, Americans voted Franklin Delano Roosevelt into office with his promises to bring the country out of the hole it was in (Kahn).After all has been said, for all the lore of American history, the United States has had its own share of troubles. All of which have helped forge it to be the great country it is today. The Stock Market Crash of 1929 being one of those events. When Americans lean too heavily upon speculation, all while immersing themselves in extreme consumerism intensified by public panic the country is pushed towards an economic crisis. As a result, people suffered great loss while America watched its banks crumble leading into the Great Depression. 

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