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Every economy goes through an economic cycle which is various stages: peak, contraction, recession, expansion, and boom. The 1920s was the expansion period where the country’s economy experience tremendous growth. Chudacuff explained Growth in details in “New Urban Growth”(Chp8). Where also almost every industrial sector flourished including stock market that attract every citizen. The Great depression was one of the most devastating era that hit the country in 20th century where it touch every individual domestically and worldwide as well. Chudacuff explained the causes of the Great depression and its impact, mainly, on the employment. The crash of a stock market has “dissolved $30billion of personal wealth and pushed the country into a decade of sacrifice and deprivation”(p228).No doubt that the financial problems rose from money that browed through issuing bonds in the expansion period in1920s played a big role for many cities defaulted. Chudacuff explained that by 1930 these bonds matured in time of the financial crises which made a payment on principals and interest impossible for many cities which put many Cities in deep debt and increased their spending. In addition most of these bonds ‘ value plunged quickly to .40¢ for$1. Many measures took place in order to reduce the impact of the economic crises, like reduces the local and principals government expenditures, and raising $85million for relief in cities and towns, but the magnitude of the great depression was strong enough to allow any recovery any time soon. The federal government then must act as twenty -six mayors met in Detroit to ask Washington for $5 billion to finance a public construction project. This was refused by president Hoover and created (RFC) an agency that can lend money of other institutions. Not until 1935 when President Roosevelt called thoroughly for more jobs and security which lead congress to form WPA to finance public projects.
1929 market crash