Today’s Wonder of the Day was inspired by Anita. Anita Wonders, “What was the Great Depression?” Thanks for WONDERing with us, Anita!
Have you ever known a friend or family member who was unemployed for a time? Unemployment occurs for a wide variety of reasons, and it's never fun when it happens. The economic hardship and stress it causes can take a toll on a family.
Can you imagine what life would be like if large segments of the population faced unemployment at the same time. Every once in a while, the economy goes through a recession, which is a time of increased unemployment and decreased prosperity.
A particularly-bad recession that lasts for an extended period of time is known as a depression. The worst depression in United States history is known as the Great Depression. Beginning soon after the stock market crash of October 1929, the Great Depression lasted throughout the 1930s, finally lifting in 1939 as World War II began to spur industry in the U.S.
The Great Depression was the result of a variety of interacting factors. After a recession that had started earlier in 1929, the October stock market crash wiped out the investments of millions of people and led to the total failure of many banks. In the wake of the crash, consumers spent less and were afraid to invest.
As goods sat unsold on store shelves and in factory warehouses, industrial output sharply declined. As a result, unemployment rose steadily as factories laid off workers. Without jobs, people spent even less money, causing the cycle to repeat and worsen.
At the height of the Great Depression (around 1933), approximately 13-15 million Americans (over 20% of the population) were unemployed. Nearly half the nation's banks had closed. Many people lost their homes as foreclosures and repossessions increased when mortgages could not be paid. The future was bleak, and the depression spread worldwide, especially into Europe.
As the number of the homeless and hungry grew, crops sat in fields and rotted, because farmers could not afford to harvest them. Farmers had been hit particularly hard by the combination of the depression and weather conditions that had created what was known as the Dust Bowl.
When President Franklin D. Roosevelt assumed power in 1933, the country was in the worst shape in its history. Roosevelt was optimistic, however, telling people that "the only thing we have to fear is fear itself."
Under Roosevelt's "New Deal" plan, many different pieces of legislation were passed with the goal of stabilizing production in both the industrial and agricultural sectors. New jobs were created via new programs, such as the Tennessee Valley Authority (TVA) and the Works Progress Administration (WPA).
Creation of the Federal Deposit Insurance Corporation (FDIC) and the Securities and Exchange Commission (SEC) helped to spur recovery by regulating the stock market and putting banks back on a secure footing, so that investors would return.
The United States faced a long, hard road to recovery. Despite gains, the country was hit again with recessions in 1937 and 1938. Ultimately, the depression-fueled extremist political movements in Europe, such as Hitler's Nazi regime, led to new wars in Europe in 1939.
Although the U.S. would not enter World War II until 1941, the WPA began strengthening the country's military infrastructure in 1939. These war-related increases in industrialization eventually helped finally to pull the country out of the Great Depression.
Ajabu ya Leo ya Siku ilichochewa na Anita. Anita, <unk>Ni nini Mshuko Mkubwa wa Kiuchumi?<unk> Asante kwa kushangaa na sisi, Anita! Je, umewahi kumwona rafiki au mtu wa familia yako akiwa ameshindwa kupata kazi kwa muda fulani? Ukosefu wa kazi ya kuajiriwa hutokea kwa sababu mbalimbali, na kamwe si jambo la kufurahisha linapotokea. Magumu ya kiuchumi na mfadhaiko unaosababishwa na hali hiyo yaweza kuathiri sana familia. Unaweza kuwazia maisha yangekuwaje ikiwa sehemu kubwa ya watu wangekabiliwa na ukosefu wa kazi wakati huohuo? Kila baada ya muda, uchumi hupitia hali ya kushuka kwa uchumi, ambayo ni wakati wa ongezeko la ukosefu wa ajira na kupungua kwa ufanisi. Mshuko wa kiuchumi mbaya hasa ambao huendelea kwa muda mrefu huitwa mshuko wa kiuchumi. Mshuko mbaya zaidi wa kiuchumi katika historia ya Marekani unajulikana kama Mshuko Mkubwa wa Kiuchumi. Kuanzia baada ya kuanguka kwa soko la hisa mnamo Oktoba 1929, Mshuko Mkubwa wa Kiuchumi ulidumu katika miaka ya 1930 na hatimaye uliondoka mnamo 1939 wakati Vita Kuu ya Pili ya Ulimwengu ilipoanza kuchochea tasnia nchini Marekani. Mshuko Mkubwa wa Kiuchumi ulikuwa tokeo la mambo mbalimbali yaliyohusika. Baada ya mfumuko wa uchumi ulioanza mapema mwaka wa 1929, mlipuko wa soko la hisa uliharibu uwekezaji wa mamilioni ya watu na kusababisha kufilisika kabisa kwa benki nyingi. Baada ya mlipuko huo, watumiaji walitumia pesa kidogo na waliogopa kuwekeza. Kwa kuwa bidhaa hazikuuzwa kwenye rafu za maduka na katika maghala ya viwanda, uzalishaji wa viwanda ulipungua sana. Matokeo yakawa kwamba ukosefu wa kazi ya kuajiriwa uliongezeka kwa kasi huku viwanda vikifuta wafanyakazi. Bila kazi, watu walitumia pesa chache hata zaidi, na hilo likafanya mzunguko huo urudiwe na kuwa mbaya zaidi. Wakati wa msukosuko mkubwa wa uchumi (karibu mwaka wa 1933) karibu Wamarekani milioni 13 hadi 15 (zaidi ya asilimia 20 ya idadi ya watu) walikuwa hawana kazi. Karibu nusu ya benki za taifa hilo zilikuwa zimefungwa. Watu wengi walipoteza nyumba zao kwa sababu ya kuongezeka kwa ukandamizaji na ukandamizaji wa nyumba wakati mikopo ya nyumba haikuweza kulipwa. Wakati ujao ulikuwa mbaya, na mshuko wa kiuchumi ulienea ulimwenguni pote, hasa katika Ulaya. Idadi ya watu wasio na makao na wenye njaa ilizidi kuongezeka, mazao yakawa yamekaa mashambani na kuoza, kwa sababu wakulima hawakuweza kuvuna. Wakulima waliathiriwa sana na hali ya hewa na hali ya hewa iliyokuwa imesababisha kile kilichoitwa Dust Bowl. Rais Franklin D. Roosevelt alipochukua madaraka mwaka 1933, nchi ilikuwa katika hali mbaya zaidi katika historia yake. Hata hivyo, Roosevelt alikuwa na matumaini, akimwambia watu kwamba "kitu pekee kinachohitaji kuogopwa ni hofu yenyewe". Chini ya mpango wa Roosevelt wa New Deal, sheria nyingi tofauti zilipitishwa kwa lengo la kuimarisha uzalishaji katika sekta za viwanda na kilimo. Kazi mpya ziliundwa kupitia programu mpya, kama vile Mamlaka ya Bonde la Tennessee (TVA) na Utawala wa Maendeleo ya Kazi (WPA). Kuanzishwa kwa Shirika la Fedha la Uhakikisho wa Amana (FDIC) na Tume ya Uhifadhi na Soko (SEC) kulisaidia kuchochea kupona kwa kudhibiti soko la hisa na kuweka benki nyuma kwenye msingi salama, ili wawekezaji warudi. Marekani ilikabili njia ndefu na ngumu ya kupona. Licha ya mafanikio hayo, nchi hiyo ilipatwa tena na matatizo ya kiuchumi mwaka wa 1937 na 1938. Mwishowe, harakati za kisiasa za kupindukia zilizosababishwa na mvurugo wa kiuchumi huko Ulaya, kama vile utawala wa Nazi wa Hitler, zilisababisha vita vipya huko Ulaya mwaka wa 1939. Ingawa Marekani haikuingia katika Vita Kuu ya Pili ya Dunia hadi mwaka 1941, WPA ilianza kuimarisha miundombinu ya kijeshi ya nchi hiyo mwaka 1939. Ongezeko hilo la viwanda lililosababishwa na vita hatimaye lilisaidia kuondoa nchi hiyo katika ule Mshuko Mkubwa wa Kiuchumi.