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Warner

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The great depression was the longest and most severe economic depression ever experienced. It began in the U.S. right after the New York Stock Market Crash in 1929 and lasted until about 1939. The depressions caused stock values to drop and thousands of banks failed. The extreme events of the Great Depression show the relationship between the strength of U.S. markets and labor stability. The damage of the major financial institutions led to disbelief on the part of the American people for those institutions that remained. Investments by businesses and individuals alike were lost in the stock market crash and resulting events. Since the manufacturing industry was one of the largest employers in the U.S., as it crumbled, so did the lives of the blue collar workers. These low to moderate skill level jobs were no longer available, resulting in record unemployment numbers. The supply and demand helped lengthen the Great Depression. The American farms and factories produced large amounts of goods and products during the prosperity before the Depression. The hardest part was many people's wages stayed the same even as prices for these goods soared. People who lived on farms had even less than urban dwellers. Since many people had no money, they stopped buying products, but factories and farms still continued to produce at the same rate. As the farmers realized fewer people were buying, they cut back on production. This caused the farmers to lay off more and more workers. These unemployed workers didn't have money to buy anything, so the factories continued to lay off people. This trend continued until twenty-five per cent of the population was unemployed. This excess supply of labor had nowhere to turn for relief.
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