The United States faced a major economic crisis between 1929 and 1939. Numerous factors contributed to the downturn which included drought and bank failures. These situations also resulted in various financial hurdles to the population. Majority of the individuals lost jobs, property and the reduction in the levels of living standards. Drought and bank failures affected the mental stability of the people of the United States.
Environmental factors are likely linked to depression and anxiety. One of the critical elements of the environment that affects the health standards of society is drought. The United States has a history of drought and several ways in which these conditions influenced the mental states of the population. This paper intends to describe and explain the historical relationship between drought and the great depression.
The drought had significant impacts on the mental health of individuals. The dry condition led to water scarcity and as such results in crop failure. Reduced crop production limited agricultural commerce, losses of jobs and rise in debts among the investors. The prolonged drought promoted financial hardships and damage to property. The United States moreover experienced shifts in the climatic conditions between 2011 and 2014. The changes in environmental circumstances increased depression and anxiety over the same period. The discharges associated with areas exposed to drought and regions unexposed to the harsh condition were different.
Bank failures in many states had various impacts on different economies. Studies indicate that financial shortcomings in the region led to numerous forms of depression. Bank collapse affected output during the great recession. Some studies suggest that the effects were non-monetary to the economy. The cost of loans was high during the same period. The interest rates on loans were high due to the few organizations that could offer financial help to individuals.
Numerous evidence attempts to illustrate the pressure that existed on the banks. There were high risks to the institutions that loaned their clients. There was an average of about 25000 banks of which only 15000 were safe during the 1933 shutdown. The fall down of the organizations induced a different technique of money supply. Majority of individuals who were customers to several banks failed to secure their money from their branches due to the closure of over 15000 banks.
The banking system was also ineffective and as such, a significant cause of the depression. Majority of the banks engaged in the suspicious purchase of stock. The participation by the banks was unusual since clients were to be the rightful participants. The ineffective monitory policy affected the economy of the state. Failure to control the interest rates allowed the majority of the banks to increase the charges on their loans.
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