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Jessica Schwerdt
Ms. Krupicka
AP U.S. History
March 18, 2015
The Downfall of a Prosperous Nation
The American Dream was a reality during the 1920s; industry boomed and the stock
market grew like never before. Then in October 1929 growth suddenly turned into a freefall. The
stock market was usually only effected the wealthy, and it did at first. Once the stock market
crashed money everywhere was lost, the money of the investors and company owners. This
eventually led to the layoffs of one quarter of working white Americans and forty percent of
African Americans, plus the farming depression that started after World War I led to the money
freefall is now known as the Great Depression. The fast growth of the American economy had
spun out of control. Industry was growing too quickly to be sustained and some economists
warned the population but the warning was too little too late, the damage had already been done.
After World War I ended most of the country boomed economically, except for farmers.
During the war farming was in huge demand, Europeans did not grow their own wheat, and a
constant supply of cotton was needed to make uniforms. Once the war was over however Europe
began to grow its own wheat again, and the large demand for new uniforms was gone. Farmers
who expanded their land during the war could no longer pay to cultivate all the land. Some had
taken loans from banks or the government to start or expand the farm but without the demand for

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the crops could no longer pay. So farmers decided that in order to profit they would grow more
and sell more. Unfortunately all the farmers had the same idea, resulting an overabundant supply
and a low demand, the prices of wheat and cotton plummeted. Many farmers ended up leaving
their farms and moving to cities to start anew. This event is considered the Farm Depression that
started roughly nine years before the crash of the stock market. Trouble for farmers did not end
with the Farm Depression however, in 1931 drought and dust storms plagued the farmers of the
Great Plains. Known commonly as the Dust Bowl the drought set in, the winds picked up and the
over cultivated soil blew away. The dust storms would suffocate livestock and people, commonly
children and the elderly. Nicknamed Black Blizzards the storms seen far away looked like a dark
purple wall and inside the storm like pure darkness. Crops could not be farmed in these
conditions causing further food shortages and a mass migration of farmers to California. This
mass migration of white farmers forced many long time Mexican and Filipino workers out of
jobs.
Only seven months after President Herbert Hoovers inauguration the stock market
crashed, and while Hoover did all in his power to help and prevent further downfall many
blamed him for the Depression. President Hoover formally being the head of the Food
Administration during World War I and the Secretary of Commerce under both President
Harding and Coolidge knew the American economy was in trouble. While former President
Coolidge was convinced that the economy would continue to prosper and grow. However
Hoover and economists like Roger Babson, who did a speech on the matter, predicted that the
economy could not sustain its growth and would eventually have a terrible crash. Unfortunately
most people thought Babson was wrong. With the problem of the coming economic crash being

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ignored and the time of Herbert Hoovers presidency, nothing Hoover could do would have
prevented the crash. After a Republican president was blamed for the Great Depression, the
Democratic Franklin D. Roosevelt was elected, passing many Acts to create jobs and help the
American people.
During the Roaring 20s consumerism changed drastically. Before the 1920s the only
loans a middle class person had was a mortgage but when new and expensive products such as
automobiles came onto the market, consumers over extended their means and took out loans. The
average middle class worker could not afford to pay in full for many of the new expensive
products on the market, so companies began to allow weekly or monthly payments or banks
made loans. Once the Great Depression set in many Americans who were out of work or made
too little to pay back the loans, causing a mass loss of money to banks and companies.
With the Great Depression came great struggle and hardship. The times were harder for
some than others, but never easy. The gigantic boom of the previous decade had led to the giant
crash. The American population was warned about the upcoming economic disaster, but did not
listen. Once the disaster happened nothing could be done to prevent it.