History The Great Depression Questions
The effects of the Great Depression on the American economy were devastating. The stock market crash of 1929 led to widespread unemployment, with millions of Americans losing their jobs. This resulted in a sharp decline in consumer spending and a decrease in industrial production. Banks failed, leading to a collapse of the banking system and a loss of people's savings. The agricultural sector was also severely affected, as farmers faced falling crop prices and drought conditions. The overall result was a significant decrease in economic activity, a rise in poverty levels, and a prolonged period of economic hardship for the American people.