The Great Depression was a severe global economic downturn from 1929 to 1939 in the United States of America (USA). The period was filled by high rates of unemployment and poverty; extreme reductions in liquidity, industrial production, and trade; and ubiquitous bank and business failures around the world. The economic fall began in 1929 in the United States, the largest economy in the world, when the stock market crashed. A rash in the banks followed in 1930, and as the Dust Bowl increased the number of farm foreclosures, unemployment topped 20 percent by 1933. Many countries outside America like Brazil, Germany, and many other countries are also involved or affected by the Great Depression. The Great Depression hung until 1941, when America was involved in WW2 and needed young men for military service. This created millions of jobs in defense and war industries.
If we want to understand more about the Great Depression, we need to know about the stock market. The stock market is a set of exchanges where companies issue shares and other securities for changes. It also includes over-the-counter (OTC) marketplaces where investors trade securities directly with each other. We can make money on stocks by getting capital gains from the price. Another important starter of the depression was the Dust Bowl. The Dust Bowl was the result of a period of severe dust storms that greatly damaged the ecology and agriculture of the American and Canadian prairies during the 1930s. The phenomenon was caused by a combination of natural factors (severe drought) and human-made factors: a failure to apply dryland farming methods to prevent wind erosion, most notably the destruction of the natural topsoil by settlers in the region.
The 1930 Great Depression had the most severe effect on the United States. In 1933, 25 percent of all workers and 37 percent of all nonfarm workers were completely out of work. Some people starved; many others lost their farms and homes. Nearly everyone was devastated. In the USA, the people who suffered from the Great Depression the most were the African Americans. By 1932, nearly half of the African Americans were out of work; they couldn't earn any more money. The most important reason is they face discrimination. The government will mostly give the jobs to white men, not to black men. Of course, the poor people suffered the most. People who are rich and have power can still have their job. The government always gives the “rich” priority. So the rich people were fine during the Great Depression.
Another “Great Depression” happened in the 2020s when COVID- 19 started from China and affected the world. I and all the people in Shanghai, the largest and best city in China, experienced two to three months of lockdown in our house. We can only secretly walk our dog in the basement. Buying food is very hard as too many people are trying to do the same thing as us on the internet. We can only buy things together when we share a delivery with others (group purchase). To control our food, we need to eat less and do exercise everyday to keep our weight. I only could secretly go to my friend above my floor to play. We always felt bored. But being with my family during lockdown is better than being alone.
In conclusion, the Great Depression is an economic crash that hit nearly the whole world in the 1930s. The most affected country is the United States. The Great Depression’s first phase is the stock market crashing. The stock market is a set of exchanges where companies issue shares and other securities for changes. After the stock market crashed, the banks also crashed. This is because people can’t get money out of their account. Another reason for the Great Depression is the Dust Bowl, a drought that caused agriculture to fail. The poor and black African Americans got affected the most as they don’t have power. Similarly, another depression happened during COVID-19 where everyone couldn’t get what they needed.
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