The Great Depression had many causes that built up to make it as big as it was. During World War I the U.S. had loaned supplies and money to their European Allies; not having these supplies or money caused the countries to go into debt making the depression go worldwide. The U.S. had a weak economy. There was an inability of the political and financial institutions to cope with the downward spiral that had started in the late twenties. Even after political intervention fifteen percent of the work force were unemployed. The biggest cause of the Great Depression was the 1929 Stock Market Crash. On October 29, 1929 stock market prices dropped dramatically and continued to drop for the next three years. “Stock prices in the United States continued to fall, until by late 1932 they had dropped to 20% of there value in 1929”(Britanica 1).…
What caused the Great Depression was never clearly uncovered, but it had something to roaring economy in the 1920s. The “Roaring 20s” consisted of improved technological advances, including washing machines, radios, and automobiles. This new technology made labor easier and quicker (Shmoop). In the 1920s, the stock market was how everyone…
The Great Depression of 1929 is said to have many causes. In an article on about.com Martin Kelly states there were five main causes of the Great Depression. First is the stock market crash of 1929. October 29, 1929 or Black Tuesday, was the fourth day of the stock market crash. For the New York Stock Exchange it was the worst day in history because it signaled the start of the Great Depression. Within hours on Black Tuesday the stock market lost all the gains for the entire year. The Dow Jones Industrial Average gapped down from the previous day’s close of 260.64, opening at 252.6. It fell to 212.33, closing a bit up at 230.7, an eleven percent loss. Over sixteen million shares were traded, beating the record of almost thirteen million traded on Black Thursday. That was worth fourteen billion, or one hundred eighty five billion in 2011 dollars. As bad as the losses were they were not what made Black Tuesday so devastating. The crash set the direction of the stock market, and then the economy, for the next decade. In just four days the stock market dropped twenty five percent, which was forty percent in market value or thirty billion dollars. In 1929 this was ten times the Federal budget. By November 13, the day when stock prices hit their lowest point in 1929, over one hundred billion dollars had disappeared from the American economy. Today that would be worth over one trillion dollars. Black Tuesday is widely…
On October 29, 1929, known as Black Tuesday, share prices on the New York Stock Exchange completely collapsed. Most people think that the Great Depression began because of the stock market crash. However, this isn’t true. Some hold the government responsible for the start of the Great Depression because of three things, interest rates, money value, and money supply. To preserve the dollar’s value, the federal government raised interest rates.…
The year of 1929 is marked by the Stock Market Crash in which most consider to be the beginning of the Great Depression. This was not the sole cause of the Great Depression, though. The Stock Market Crash was caused by an economy that was not stable enough to handle the high stock prices. The Stock Market Crash helped bring on the Great Depression which forced the United States government to make changes in the regulation of stock exchanges, providing much greater protection for investors.…
Many factors caused The Great Depression. During the 1920’s America’s economy was in full swing and it was extremely unusual to not have some money invested in the stock market because people could become millionaires effectively over night. This was actually a blessing and a curse , because there was no physical money to back up what people had in their bank accounts, it was all basically credit. The federal reserve had no money to back up the economy. It was inevitable for the stock market to crash because of the sharp imbalance between supply and demand. Durable goods such as vacuums and cars obviously didn’t get all their uses out in one month. They last for decades…
The Great Depression was one of America’s greatest downfalls. What began in the 1930s led to a national disaster from economic hardships and rough lifestyles. The U.S. government including Herbert Hoover was responsible for this downfall because Hoover kept to the idea that allowing the economy to correct itself was the best course of action.…
The unprecedented prosperity of the 1920s was suddenly gone, the Great Depression was upon the nation, and breadlines became a common sight.…
The Great Depression was an economic downfall that was during the 1930’s. In the previous decade people lived in prosperity and believed it would continue. Many thing accounted for the overall cause of the Great Depression, like over optimism and buying on margin, but the main cause was speculation.…
the 1920’s was period of grate happiness among the people of all kind, but it was not until the end of this decade that the financial had been noticed. Later a place called the stock market crash of 1929 came as a shock to most Americans and especially the bankers, that looking at the causes of the Great Depression; it was clear how America entered this period. Not only was there poor economic, but an uneven distribution of wealth and poor debt structure.…
The stock market did not cause the Great Depression. The Great Depression started in 1929. Purchasing and construction dropped. Farmers were already in an economic depression before the Great Depression swept the nation. There were millions of people that had very little money.…
In the mid of October, 1929, depression struck. Millions were forced out of their homes they have lived in forever because of the harsh conditions. This terrible era became known as The Great Depression. The depression lasted many years, from 1929 until late 1930’s start of 1940’s. We have learned over time the cause of the great depression and the effects it had. Lands became useless due to the dust bowl, no one could afford to buy food due to the high unemployment rates, life savings vanished because of the stock crash and all the bank failures, and overproduction left retailer losing earnings instead of making. This causes all came together to create the great depression. This era devastated all, leaving most without a home or money. One of the main causes of the great depression was the crash of the stock market in 1929.…
Many factors played a role in bringing about the depression; however, the main cause for the Great Depression was the combination of the greatly unequal distribution of wealth throughout the 1920's and 30's, and the extensive stock market speculation that took place during the 1930's. These were not only the factors of the great depression, structural weaknesses and the fact that most of the other countries were affected just kept the depression going were also played a part. The resulting period ranked as the longest and worst period of high unemployment and low business activity in modern times. The Great Depression was the worst economic slump ever in U. S. history, and one…
The 1920s witnessed an economic boom in the US. Industrial output expanded very rapidly. Money supply is expanded as the result of economic growth, or the speculator policy of the bank. Additionally, the social attitude of American are over-confident, consuming more than saving, and borrowers are consistent with the belief that price would soar without falling down. Therefore, the stock market had boomed as price-earnings ratios were higher than the historical averages. That also leads to an asset price bubble in stock price, followed by the Great Depression in 1929…
Stock Market Crash of 1929 was one of the major causes that led to the Great Depression. Two months after the original crash in October, stockholderzs had lost more than $40 billion dollars. By the end of 1930, the stock market tried to regain some of its losses but it was not enough and America truly entered the Great Depression.…