In 1929, the stock market crashed starting the beginning of the great depression. As stock prices plummeted with no hope of recovery, panic struck. All this caused the world to undergo a fundemental change in lifestyles.
Since many banks had invested large portions of their clients' savings in the stock market, the banks were forced to close when the stock market crashed. Seeing a few banks close caused another panic across the country. Afraid they would lose their own savings, people rushed to banks that were still open to withdraw their money. This massive withdrawal of cash caused additional banks to close.
Hooverville's or Scanty towns appear around the country built by homeless people using wood from crates, cardboards, scraps of metals, or whatever materials were available. Governments and companies cut working hours for those in empolyement hopping to provide more jobs for those who were unemployement. 10's of thousands load up all belongings and live in cars going from place to place looking for work.
Business and Industry were affected by the depression. Having lost so much money in the crash, many business started to cut back their workers. The unempolyment rate to 24.1%.
Communist party of America organizes a "March on Hunger". 43,000 marches inc. 17,000 World War1 vets (bonus Army) marched to Washington Dc and set up campground early of cash bonus to help survive the Great Depression.
The Great plain states was hit by a severe drought. Many banks and companies were force to close due to the economic enviroment. More than 4,000 banks closed. During the Great Depression, there were 2 million homeless people in the United States
Deflation took place, by reducing goods prices by 10% per year. By 1934, nearly one-half of all residential loans were delinquent and over 1 million families lost their farms. In 1932 alone, 273,000 families were evicted from their homes. Between 1929 and 1932, construction of homes dropped by an incredible 80%. Despite these hardships, the unempolyment rate decrease to 22%.
The U.S introduces import tariffs on over 20,000 imported goods to record levels leading yo other following suits.