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Explain the causes of great depression
Explain the causes of great depression
Explain the causes of great depression
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Beginning on Black Tuesday, October 29th, 1929, a total of 14 billion dollars was lost in America’s economy. Near the end of the week the 14 billion turned into a total of 30 billion dollars (The Great Depression Facts). Many events during the Stock Market Crash caused damage to the economy and lifestyle of the country, ending with recuperations from The Depression. There have been many issues that caused the stock market to crash. One major effect on the Great Depression was the current state of agriculture. The effect from both the Dust Bowl drought and the Great Depression made it hard on farmers in the early 1900’s; it was hard for farmers to produce crops (“The Ultimate AP US History”). Farmers with small businesses were forced to end …show more content…
Banks all around, especially the large ones, sought to support the market before it could crash down. As the stock prices crashed, banks struggled to keep their doors open (“Economic Causes and Impacts”). Unfortunately, some banks were unsuccessful. Customers wanted their money out from their savings account before it was gone and out of reach, leaving banks insolvent (“Stock Market Crash of 1929”). The crash also affected all kinds of people in it’s own, unique ways. The article, “Economic Causes and Impacts,” states “By 1932, farm income fell some 50 percent, one out of every four Americans was unemployed, and 37% of percent of all nonfarm workers were completely out of work.” Farmers had been a large part of that group. As most were driven out of the business of farming, it was difficult to find another (Pettinger). The loss of jobs affected their personal finances as well (Pettinger). When times got tough, businesses started to cut wages and went even further laying off some people (“Economic Causes and Impacts”). As the damage has caused harm to many citizens, Franklin Delano Roosevelt created the New Deal to help the many families in …show more content…
N.p., n.d. Web. 17 Nov. 2017. "The Great Depression Facts." Math. N.p., n.d. Web. 26 Nov. 2017. "The New Deal." Social Welfare History Project. N.p., 30 Oct. 2017. Web. 17 Nov. 2017. Pettinger, Tejvan. "What Caused the Wall Street Crash of 1929?" Economics Help. N.p., n.d. Web. 17 Nov. 2017. Romer, Christina D., and Richard H. Pells. "Causes of the Decline." Encyclopædia Britannica. Encyclopædia Britannica, Inc., 27 Oct. 2017. Web. 3 Dec. 2017. "Stock Market Crash of 1929." History.com. A&E Television Networks, 2010. Web. 14 Nov. 2017. "The Ultimate AP US History New Deal Programs List." Albert Blog. N.p., 14 June 2016. Web. 17 Nov.
The stock market crash of 1929 was one of the main causes of the Great Depression. Before the stock market crash, many people bought on margin, which caused the stock market to become very unbalanced, which led to the crash. Many people had invested heavily in the stock market during the 1920’s. All of these people who invested in the stock market lost all the money they had, since they relied on the stock market so much. The stock market crash also played a more physiological role in causing the Great Depression.
Nextly, the stock market crash also caused the economic fallout which resulted in the Great Depression. Because “Black Tuesday” wiped away billions of dollars and thousands of investors, it caused a great amount of economic fallout. When “Black Tuesday” struck Wall Street on October 29th, 1929, investors traded 16 million shares on the the New York Stock Exchange in just a day which caused billions of dollars to be lost and thousands of investors who got all their money wiped out. After the fallout of “Black Tuesday” America’s industrialized country fell into the Great Depression, which was one of the longest economic downfalls in the history of the Western industrialized world.
"New Deal." Gale Encyclopedia of U.S. Economic History. Ed. Thomas Carson and Mary Bonk. Detroit: Gale, 1999. Student Resources in Context. Web. 4 Dec. 2013.
An overview of the 1930's and how many Americans' lives were adversely impacted by the New Deal.
The New Deal was a set of acts that effectively gave Americans a new sense of hope after the Great Depression. The New Deal advocated for women’s rights, worked towards ending discrimination in the workplace, offered various jobs to African Americans, and employed millions through new relief programs. Franklin Delano Roosevelt (FDR), made it his duty to ensure that something was being done. This helped restore the public's confidence and showed that relief was possible. The New Deal helped serve American’s interest, specifically helping women, african american, and the unemployed and proved to them that something was being done to help them.
"The Depression, The New Deal, and World War II." African American Odyssey: (Part 1). N.p., n.d. Web. 06 Mar. 2014.
3 Mar 2014. http://rooseveltinstitute.org/policy-and-ideasroosevelt-historyfdr/new-deal>. The "Work Progress Administration (WPA). " The American Experience. PBS.
It is said that the cause of the catastrophic stock market crash known as the great depression was due mostly to uncontrolled political and industrial systems otherwise known as capitalism. However, the timeline leading up to the Great Depression proves that many other factors played a role in the stock market crash that occurred in the decade of the 1930's. So lets take a look at rather four, factors contributing to the great depression that we will further discuss in the following paragraphs. Four of the main causes that led up to the great depression were unequal distribution of wealth, uncontrolled political and industrial systems, high tariffs and war debts.
Weize Tan History 7B 3/09/14. Chapter 23 1. What is the difference between a. and a. What were some of the causes of the Great Depression? What made it so severe, and why did it last so long? a.
...epression can not be contributed to any single reason. There were a multitude of reasons for the collapse of the Stock Market. The Great Depression was felt worldwide. The American economy was the greatest during that time and many nations relied on us.
"New Deal." The Reader's Companion to U.S. Women's History. Ed. Wilma Mankiller, Gwendolyn Mink, Marysa Navarro, Barbara Smith, and Gloria Steinem. n.p. Web. 6 Mar. 2012.
The black Tuesday, October 29th, 1929 has been identified as the symbol of the Great Depression. Stock holders lost 14 billion dollars on a single day trade, and more than 30 billion lose in that week, which was 10 times more than the annual budget of the Federal government.[ [documentary] 1929 Wall Street Stock Market Crash
By 1929, the U.S. economy was in serious trouble despite the soaring profits in the stock market. Since the end of WWI in 1918, farm prices had dropped about 40% below their pre-war level. Farm profits fell so low that many farmers could not pay their debts to the banks; in turn this caused about 550 banks to go out of business. The nations illusion of unending prosperity was shattered on Oct. 24 1929. Worried investors who had bought stock on credit began to sell it. A panic developed, and on October 29, stockholders sold a record 16,410,030 share. By mid-November, stock prices had plunged about 40%. The stock market crash led to the Great Depression, the worst depression in the nation’s history (until…2014 ☺). It was a terrible price to pay for the false sense of prosperity and national well being of the Roaring Twenties.
On Tuesday, October 29th, 1929, the crash began. (1929…) Within the first few hours, the price fell so far as to wipe out all gains that had been made the entire previous year. (1929…) This day the Dow Jones Average would close at 230. (1929…) Between October 29th, and November 13 over 30 billion dollars disappeared from the American economy. (1929…) It took nearly 25 years for many of the stocks to recover. (1929…)
After people started buying too many new things, a crash happened. There were many reasons why this happened. For example, people viewed the stock market as a short term investment instead as a large one. The boom was enormous and the crash itself was huge. The Great Depression lasted in the 1920s and was the biggest one in Americas history. The crash could have been prevented if consumers did not purchase too much.