The Great Depression

Topics: Wall Street Crash of 1929, Great Depression, Unemployment Pages: 3 (816 words) Published: May 12, 2014
The Great Depression
2014 - 02 - 20
Stefan Hidalgo
Malmo Pauli Komvux

The depression of 1929 was the greatest economic crisis in the history of the United states and the world, all were affected and industries took this crisis hard about a decade ago. This crisis called "depression" originated in the United states, that occurred after the fall of the stock market on October 29, 1929 also known as “black Tuesday”, after it was extended to all countries of the world. This crisis began with the fall of agricultural prices in 1928 and erupted in October 1929 when the New York Stock Exchange "black Tuesday," sank, after prices fell for three consecutive months and sold more than 16 million actions, this crisis not only affected the industry but also the trade. The banks had no money and had no credits industries, that they could not afford to, so industries had to lay off workers, but this crisis did not only hit the united states, but it did also spread to Europe and Latin America which caused great devastation. Many people stood in queue outside the banks to get their money because it was not safe to store their money in the bank.

Within this crisis, the United states tried to implement a policy that was actively involved and directly used into the economy, they named it "new deal" which was created by Frank D Roosevelt, but in Europe it became known by the name of "welfare state", but the process was interrupted by the WWII. Frank D Roosevelt was elected during the same time the depression was going on, and he started restoring the great problem which this great country had been struggling against. The basic cause of this financial crisis in the united states was due to overproduction and inflation of credit, besides the poor distribution of wealth in the years 20, the misdistribution occurred in several ways, the money was unevenly distributed among the class high and middle class, there was a gap between industry and agriculture, and also between...
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