Cause And Effect Essay: Causes Of The Great Depression
Causes of the Great Depression
Starting in the year 1929 and lasting throughout the 1930’s, what would soon be known as The Great Depression, which was a time were many Americans were unemployed, homeless, and even starving to death. Consequently, these events were deprived from phenomenons during the 1920s like the stock market crash, over production, and business failures.
One of the first causes of the Great Depression was the stock market crash. It began on October 24, 1929, also known as Black Tuesday , and was the most devastating stock market crash in the history of the United States. The stock market crash lead to the deflation of the United States money and the decline in the economy. Many Americans used the stock market as a way to make easy money. Investing in companies thinking they could over turn a quick profit with little work. Little did they know what would happen of a day …show more content…
Over production occurred a few different ways. One way was when farmers were asked to expand their farms to keep up with the demand of World War 1. This made famers buy more land and invest in bigger machines. Nevertheless once the war was over the country didn't need as much produce as the famers were producing. So, farms began to go bankrupt and sell their land. On the other hand in the more urban areas factories were producing things such as radios and automobiles, but once the stock crashed, people stopped buying completely. Which caused less demand on products and less of a demand on workers. This takes us into the final cause of the Great Depression, business failure.
With out delay, the decrease in money, caused the decrease in consumption and the decrease in buying caused the decrease in jobs. Unemployment rose from 5.3% in 1929 to 30.2% by 1935. The average American family was parlaying 1,000 dollars or less. The American people were officially living the Great
Starting in the year 1929 and lasting throughout the 1930’s, what would soon be known as The Great Depression, which was a time were many Americans were unemployed, homeless, and even starving to death. Consequently, these events were deprived from phenomenons during the 1920s like the stock market crash, over production, and business failures.
One of the first causes of the Great Depression was the stock market crash. It began on October 24, 1929, also known as Black Tuesday , and was the most devastating stock market crash in the history of the United States. The stock market crash lead to the deflation of the United States money and the decline in the economy. Many Americans used the stock market as a way to make easy money. Investing in companies thinking they could over turn a quick profit with little work. Little did they know what would happen of a day …show more content…
Over production occurred a few different ways. One way was when farmers were asked to expand their farms to keep up with the demand of World War 1. This made famers buy more land and invest in bigger machines. Nevertheless once the war was over the country didn't need as much produce as the famers were producing. So, farms began to go bankrupt and sell their land. On the other hand in the more urban areas factories were producing things such as radios and automobiles, but once the stock crashed, people stopped buying completely. Which caused less demand on products and less of a demand on workers. This takes us into the final cause of the Great Depression, business failure.
With out delay, the decrease in money, caused the decrease in consumption and the decrease in buying caused the decrease in jobs. Unemployment rose from 5.3% in 1929 to 30.2% by 1935. The average American family was parlaying 1,000 dollars or less. The American people were officially living the Great