The Great Depression began in the United States in 1929 and lasted into the 1940s. It was the longest, most severe economic collapse in American history. The stock market fell, and unemployment soared. People could not afford necessities such as food and clothing.
Before the Great Depression, during the early 1920s, the rich became richer, but the income of the common people did not rise. At the same time, advertisers convinced people that they could buy things on credit; in other words, people would buy things now but pay for them later. As the economy worsened and people lost their jobs, they could not pay their debts. As a result, many people lost their homes and other possessions.
The crisis worsened when the stock market crashed in October 1929, losing billions of dollars. People feared losing their money and began withdrawing their savings from banks. The banks did not have enough money to cover all the withdrawals, so many banks failed. People lost their life savings.
When Franklin Delano Roosevelt was elected president in 1932, he restored confidence in the economy. He began public works projects, such as construction and arts projects, that provided jobs for many people. The government also helped those in need.
In 1941, when the United States entered World War II, the economy began to improve as the government spent money to go to war.
What conclusion can you draw from this passage?
President Roosevelt wanted to end the Great Depression.
World War II started in 1941.
Stock market crashes occur frequently.
Advertising is bad for the economy.