Nenos Shamoon
Econ 121
4/25/16
America’s Great Depression by Scott McGann
During political economy week, professor McGann spoke to us about the Great
Depression. He began his lecture by giving some statistics, such as the fact that the GDP dropped
by one third, there was 25% deflation, stock prices fell by 85%, among other statistics. This
information was important to hear, even for students who aren’t majoring in business or
economics, because it shows just how terrible the Great Depression was and the big impact that
it had on our economy. On October 24th, 1929, there was a panic among the American people,
who felt it would be best to get out of the stock market. By October 28th, 1929, the stock market
had crashed and one day after that (on “Black Tuesday”) the market had collapsed, which led
investors to default on their loans. This crash especially affected farmers, who after World War I
had ramped up their production due to a strong export market in Europe. The farmers had
produced so many crops, among other things, that by the late 1920s this caused a glut and
eventually led to prices being dropped.
Professor McGann had also discussed the Dust Bowl in class and the way in which by
1940, over two million people had left the plains states. The Dust Bowl had a huge impact on
many people because a lot of homes were buried, fields were blown away and more than half a
million people became homeless due to this catastrophic event. This event caused farmers to
