United States is one of the greatest and most powerful country in the world falling under many categories in sense of military and economically. However it has not always been that way, United Sates was deprived from being full of propensity and optimism in the Roaring 20’s, and unexpectedly falling into a cast of darkness in the late 20’s. It was the economic experiences, which ultimately became known as the Great Depression struck outwardly, without warning and brought the entire world economy to a practical cellar. The Great Depression was a time of sorrow and full tragedy where it took millions of people in the United States from work. The person of US was exposed to period of despair an unexpected transition from being optimistic to a …show more content…
Buy now and pay later, instant gratification. During the war the US sold liberty bonds to pay for the war, this was a way to borrow money from the public and return would receive interest payment bonds value. Better to have more numerous consumers than a few wealthy consumers.2 Liberty bonds made the society for the first get into investing where they got interest payment every 6 months, it created an investing culture, people were accustom to buying security bonds. Wall Street was the Center of American financial World. Mitchell president of Citi Bank saw an opportunity to convince the people to also invest in corporates. At the time it seem safe and reliable thing to do. The idea took off and so he opened many brokerage firms where people who had the money could speculate. They were buying and selling stocks such as movie company stock, motor company stocks and lastly which was starting off radio corporation stocks. By the 1922 three millions of Americans were in the market. Ordinary people like the shoe shiner believed that they could make easy money on the …show more content…
And later thousands of banks closed, people lost millions. One of the part is on Wednesday October 23 1929 stock share prices went at it highest. And more than millions of stock were sold, and later a day people were willing and trying to sell their stocks but no one would buy them therefore prices began to fall. Money supply contracted $2.5 billion in money suddenly disappeared from the economy interest rates shot up. 3 not. The Great Depression affected the nation in many ways that left people in despairing mode. It affected politics baldy shaking assurance in unregulated capitalism. Most of Americans were living in poverty, in the 1923, the average family income had dropped to $1,500, 40 percent less than the 1929 average family income of $2300. In the last year of the Roaring Twenties unemployment was 3.2 percent, and by 1933 the unemployment rate was at its highest 24.9 percent. Approximately, 15 million people were out of work. Due to the lack of unemployment it became difficult for people to eat and pay for their rent. Therefore, majority of the people started building small little homes out of cardboard, which is known as the