| The Great Depression began in 1929 with the | | | | economy for buying consumer goods. The |
| crash of the Wall Street Stock Market. By early | | | | government thought that by increasing the supply |
| 1930 the price of stock had risen slightly and then | | | | of money, the economy may be weakened even |
| fell again. Businesses cut their production and jobs. | | | | more. President Hoover strongly felt that rising |
| Bank loans were being defaulted on and depositor | | | | government debt would slow down business |
| confidence was eroded for there was no | | | | recovery. |
| depositor insurance backed by the Federal | | | | Family life was changed dramatically during the |
| government. In 1930 bank failures reach a | | | | 1930s. For the first time in US history the birth |
| staggering 1,352 and towards the end of that | | | | rate dropped below the population replacement |
| year run on banks were common in the southern | | | | level. Young people could not afford to get |
| states. | | | | married and because of the financial strain, many |
| The Federal Government made a few mistakes | | | | families simply fell apart. Men walked out on their |
| during these years. People were hording money | | | | families because of shame and during these bleak |
| and not spending. This reduced the money supply | | | | times, 1.5 million husbands had left their wives. |
| in the economy. However, there were plenty of | | | | Women, and even children, went out to work to |
| Federal gold reserves and the money supply could | | | | avoid going to relatives for help. In many cases it |
| have been increased from these vast reserves. | | | | was easier for women to get work rather than |
| Not only that but the government did not reduce | | | | their husbands, working as domestic servants for |
| taxes and so release more money into the | | | | example. |