The Causes and Effects of the Great Depression

Topics: Wall Street Crash of 1929, Great Depression, 1930s Pages: 2 (413 words) Published: December 19, 2005
One of the most often identified causes of the Great Depression which haunted this country during the 1930s is the stock market crash of 1929. There is no arguing that the effects of this crash were devastating to both the economics and the morale of the American people. The stock market had fluctuated wildly during the year before the actual crash. Investors lost and gained in increments never before seen. These extreme profits and losses sometimes occurred within a single day.

On October 24, 1929, a day which would forever be remembered as Black Thursday, the market dropped drastically, taking with it many investors. The following Monday, there was another plunge and more investors were forced into bankruptcy. Just when things looked the worst they could possibly be, the stock market, only one day later, plunged even deeper. On this Black Tuesday" there were no buyers at any price and therefore no chance of recovery. This plunge was followed by several plunges of people off high-rise buildings as the hard realities of the crash sunk in. The stock market crash of 1929 was definitely a factor to the Great Depression which would follow.

The Great Depression, one of the longest depressions in the history of North America, left Americans shaken. Between the time of 1929 and 1932 an average of 100,000 people lost their jobs every week until some 13 million Americans were jobless. This left many people on the streets begging for money and food. At least one worker out of 4 could not find work at all. Whether you were among the rich or the poor, the depression devastated everyone in the nation. The great industrial slump continued throughout the 1930s despite president Hoover's efforts. Western capitalism continued to be shaken until president Roosevelt's reign. With him, he brought the hope of a "new deal" and the declaration that "the only thing we have to fear is fear." Through his presidency, Roosevelt led the turn around...
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