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Chapter 12 causes of the great depression
Wall Street crash and the great depression
Chapter 12 causes of the great depression
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The Great Depression
When a person hears the words “The Great Depression,” almost everyone thinks of the worst economic times in the United States. The Great Depression started in the late 1920s and continued on until the early 1940s. It is known as being “the deepest and longest-lasting economic downturn in the history of the western industrialized world” (History.com). We can learn from the occurrences during The Great Depression that government involvement is the deciding factor of whether an economy will expand or continue to shrink during a recession.
The 1920’s, also known as the Roaring Twenties, were fantastic times for the economy. People were buying extravagant things such as automobiles, and investing in the stock market in order to make big money. Many of the new, expensive things that people purchased were bought on credit. People even bought stocks “on margin,” which means with borrowed money. All this extravagance would soon disappear and everything people bought on credit or margin would soon come back to haunt them.
October 29, 1929, what would later be known as “Black Tuesday,” was the day that the stock market crashed and The Great Depression started. The stock market prices had continually gone up and up to a point where there was no possible way that businesses were going to make that much in their future earnings. Investors began to sell their stocks in large quantities. Around 16 million shares were sold just on “Black Tuesday”. Because of this, millions of shares ended up becoming worthless. Those investors who had bought their stocks on margin ended up becoming completely wiped out because of this day. Personal investors were not the only people to invest in the stock market; banks also did. Banks inve...
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...yees. In the case of The Great Depression, there was a demand for production because World War II started.
Works Cited
"The Great Depression." PBS. PBS, n.d. Web. 1 Nov. 2013.
"Timeline of The Great Depression." PBS. PBS, n.d. Web. 1 Nov. 2013.
Smiley,Gene. "Great Depression." The Concise Encyclopedia of Economics. 2008. Library of Economics and Liberty. Web. 2 November 2013. .
Nelson, Cary. "About the Great Depression." Modern American Poetry. Modern American Poetry Site. N.p., n.d. Web. 4 Nov. 2013.
Rosenberg, Jennifer. "The Great Depression." About.com 20th Century History. About.com. N.p., n.d. Web. 3 Nov. 2013.
Taylor, Nick. “A Short History of The Great Depression.” Times Topics. New York Times. N.P., n.d. Web. 4 Nov. 2013
“The Great Depression.” History.com. History.com. N.p., n.d. Web. 5 Nov. 2013
When “Black Tuesday” struck Wall Street on October 29th, 1929 investors traded 16 million shares on the on 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 down into the Great Depression which was one of the longest economic downfalls in history of the Western industrialized world. On “Black Tuesday” stock prices dropped completely. After “Black Tuesday” stock prices couldn’t get any worse or so they thought but however prices continued to drop U.S fell into the Great Depression, and by 1932 stocks were only worth about 20 percent of their value. Due to this economic downfall by 1933 almost half of America’s banks had failed. This was a major economic fallout which resulted in the Great Depression because it caused the economy to lose a lot of money and there was no way to dig themselves out of the hole of
Pindar, Ian. "The Forgotten Man: A New History of the Great Depression by Amity Shlaes." The Guardian, August 9, 2009.
The 1920s were a time of leisure and carelessness. The Great War had ended in 1918 and everyone was eager to return to some semblance of normalcy. The end of the war and the horrors and atrocities that it resulted in now faced millions of people. Easily obtainable credit and rapidly rising stock prices prompted many to invest, resulting in big payoffs and newfound wealth for many. However, overproduction and inflated stock prices increased by corrupt industrialists culminat...
"America's Great Depression and Roosevelt's New Deal."DPLA. Digital Public Library of America. Web. 20 Nov 2013. .
McElvaine, Robert S, ed. Down and Out in the Great Depression: Letters from the Forgotten Man. Chapel Hill: The University of North Carolina Press, 1983.
The Great Depression America 1929-1941 by Robert S. McElvaine covers many topics of American history during the "Great Depression" through 1941. The topic that I have selected to compare to the text of American, Past and Present, written by Robert A. Divine, T.H. Breen, George M. Frederickson and R. Hal Williams, is Herbert Hoover, the thirty-first president of the United States and America's president during the horrible "Great Depression".
zShmoop Editorial Team. "Politics in The Great Depression." Shmoop.com. Shmoop University, Inc., 11 Nov. 2008. Web. 13 Mar. 2014.
Watkins, T.H.. The Great Depression: America in the 1930s. Boston: Little, Brown & Co., 1993.
Folsom, Burton. "Which Strategy Really Ended the Great Depression?" : The Freeman : Foundation for Economic Education. N.p., 24 Aug. 2011. Web. 12 May 2014.
The Eleanor Roosevelt Papers."The Great Depression." Teaching Eleanor Roosevelt, ed. by Allida Black, June Hopkins, et. al. (Hyde Park, New York: Eleanor Roosevelt National Historic Site, 2003). 6 March 2010. .
Great Depression was one of the most severe economic situation the world had ever seen. It all started during late 1929 and lasted till 1939. Although, the origin of depression was United Sattes but with US Economy being highly correlated with global economy, the ill efffects were seen in the whole world with high unemployment, low production and deflation. Overall it was the most severe depression ever faced by western industrialized world. Stock Market Crashes, Bank Failures and a lot more, left the governments ineffective and this lead the global economy to what we call today- ‘’Great Depression’’.(Rockoff). As for the cause and what lead to Great Depression, the issue is still in debate among eminent economists, but the crux provides evidence that the worst ever depression ever expereinced by Global Economy stemed from multiple causes which are as follows:
The Great Depression was a period, which seemed to go out of control. The crashing of the stock markets left most Canadians unemployed and in debt, prairie farmers suffered immensely with the inability to produce valuable crops, and the Canadian Government and World War II became influential factors in the ending of the Great Depression.
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
As investing discourages consumer spending over all decreases, it leads to the laying off of workers, causing a decline in manufacturing and an increase in unemployment.... ... middle of paper ... ... But everything happens for a reason: one can say the reason the Great Depression happened at that time was to ensure that the U.S. would not fail in the near future by leading to the establishment of Social Security, which the U.S. didn’t have until late into the Depression.
"Great Depression in the United States." Microsoft Encarta Encyclopedia 2001. CD-ROM. 2001 ed. Microsoft Corporation. 2001