The Profound Impact of the Great Depression on American Society

Abstract

How the Great Depression Changed the American Society The Great Depression can be described as the harshest adversity Americans faced since the civil war (Robbins and Weidenbaum, 2017). It is a period that lasted for ten years, as it began in 1929 and ended in 1939, but its effects on the global economy remain felt to date. It was indeed the most severe and most prolonged global economic downturn experienced by the industrialized western world, leaving adverse effects on their economies in an excellent manner. It is believed that the Great Depression originated in the United States, making it longer, thus impacting its economy very severely compared to Japan and Latin America. Since the Great Depression was a worldwide economic downturn, it affected all the global economies due to drastic declines in output, acute deflation in almost all countries, and severe unemployment. The United States is the origin of this Great Depression. Therefore, it changed drastically in most aspects of life. Consumer spending and investment dropped, leading to a steep decline in industrial output. Employment declined as failing companies laid-off workers. Unfortunately, by 1933, over 15 million Americans were unemployed, with almost half of the American banks had failed. According to the video Great Depression (part 1), the decline in consumer demand, misguided government policies, and financial panics caused a fall in economic outputs in the United States of America. The fall in the economic output translated as a severe cause of the Great Depression in the United States and other countries. How did this happen? The gold standard that linked almost all countries in a global network of fixed currency exchange rates transmitted the American downturn to all other countries. However, the situation worsened when America abandoned the gold standard ensuing monetary expansion, just like many other countries, which proved unrealistic during such challenging economic times. A period that started like an ordinary recession in the summer of 1929 became markedly worse in late 1929 through 1933. Economic output and prices fell severely, industrial production declined by 47%, real GDP fell by 30%, the wholesale index decreased by 33% (deflation), and the unemployment rate exceeded 20% (Robbins and Weidenbaum, 2017). Such effects define the United States economy and society's experience due to the Great Depression, making life significantly unbearable for many. Due to the rising levels of unemployment attributed to the Great Depression, Most American remains desperately in search of alternatives to make their ends meet. To this effect, most American societies turned to pretty theft to put food on their table (Video Great Depression part 2). To this effect, the country reported a rapid rise in the crime rates as its inhabitants had changed and adjusted their new criminal way of living. Unemployment also led to increased prostitution as desperate women tried to seek ways to clear their bills and make life bearable. Men and women who cannot practice prostitution to make ends meet and could not bear the pain of unemployment and associated suffering opted to end their lives to save themselves the agony. To this effect, the Great Depression enhanced the rise in suicide rates amongst the American society changing their life span in an excellent manner (Video, untold stories of the Great Depression). Unlike during the Great Depression,...