The Great Depression was the most catastrophic economic disaster in American history. It affected all of the US from sea to beautiful shining sea. Old and young, rich and poor, black and white, everyone suffered the consequences of the over extravagant Roaring Twenties. Businesses closed, everyone was up to their neck in debt, banks failed, and the mid-west was soon a dust bowl from over farming and reclaimed equipment. With the Smoot-Hawley Tariff in place, deflation, everything imaginable bought on credit, and unreliable loans, everything adding up eventually led to the stock market crashing and the Great Depression.
In 1929, the United States suffered a stock market crash that resulted in years of economic depression for Americans. This crash, which came to be known as the Great Depression, was not the single cause, though. There were multiple roots that led to the overall Depression. With not only Americans being effected, the entire world saw the fall and rise of what was an economic causatum.
The Great Depression was one of the most important historical events that has happened within the last century that impacted every Americans life one way or another. There were many factors that could be an explanation of why The Great Depression happened, but there is no one definitive list of the reasons of what caused The Great Depression. It was a mixture of events in the United States and outside of it that probably led to this period of time to happen. The main reason that everyone could agree on was the event of the Wall Street Crash of 1929. Because of The Crash, it made people go on a bank run which made thousands of banks to close because they simply did not have all the money for all the people wanting to withdraw their savings. Because everyone was trying to take their savings out, most people were turned down by the bank and essentially lost of their savings in the bank. The banks were failing and because they had no more money left, this stopped the banks from having available credit for people to use which made matters even worse for the people. This leads people to poverty and were left with nothing. Because people were poor and were scared of spending their money now, it made people stop buying extra things that weren't essential to live. This was the cause of the unemployment rates during this time period because if no one was buying anything, then there was no reason to keep extra workers for things people are not buying.
The Great Depression is one of the darkest periods in America’s history. It was a time of despair for all Americans. The Great Depression was caused by various reasons. It also had many effects which left an impact on America still up to this day. At that time, there was no abundance of anything: not jobs, not food, and certainly not an abundance of money, but there was surely an abundance of sadness. America had no hope since the money was a thin, green line. The Great Depression impacted the economy, unemployment rate, other foreign countries, and the many lives of the people. The monstrosity officially began on October 29, 1929.
The beginning of the Great Depression deserves its own story, what is the introduction of the Great Depression? Well, the starting point of it all was on a Tuesday, October 29, 1929, reading and learning about this part of time gives a whole new meaning of an economy and money. The Great Depression was known as the worst depression in American history, it was the most long-lasting and deepest downturn in the western world. The stock market crash wiped out millions of dollars for investors and millions of dollars for average day citizens. The stock market crash of 1929 was the Starting Point and had a big impact on the Great Depression.
The most significant cause of the Great Depression was overproduction in the 1920’s. Factories and farms were producing more than people could buy. From that prices fell, factories closed, and workers were laid off. When prices fell, the economy started to collapse. Fewer places to work also created a small number of workers to produce money. In 1930, the unemployment rate for non-farm workers was 14.2% and it rose even more in 1933 at a rate of 37.6%. Over-production had a ripple effect towards America’s economy. The act of overproduction during the 1920’s was the greatest cause of the Great Depression. Companies were creating too much for people to buy resulting into a under-composition and a lower economy.
The causes of the Great Depression began when investors in 1929 were buying stock and paying on 10 percent of the stock and getting the rest of the money for the stock through loans.They did this risky behavior because in the past the investors were able to resell for a higher price and get lot of money out of it. They were also able to pay back the loans they got. When the people that gave the loas to the investors demanded their payment back in October 1929. The investors could not pay thus causing a crash. That is how it crashed the reason or should I say reasons it lasted so long was a lot of poor decisions that worked detrimentally together in making the Great Depression last.
The Great Depression was a time when unemployment rates increased, people lost their life saving, and banks went on a crisis. The primary reason why this happened is because of consumer culture. Borrowing money was easier than ever in the 1920s. Buyers could easily pack a small percent of the stock price and borrow the rest from a broker. Consumers were buying goods at a rate higher than their income was expanding (6). However, as the market was rising, stockers were happy to lend money to anyone. The methods used to purchase items caused the stock market to collapse. Borrowing money became risky when starting a business because you could only hope for profit. However, purchasing on layway and going into debt was becoming acceptable (6). This encouraged the continuation of these methods which lead to something greater. Consumer culture occurring in the 1920s is the primary reason why the Great Depression occurred. Consumers were using purchasing methods such as buying on the margin and layaway which caused the stock market to crash in the 30s.
A drastic incident happened in American History on October 29, 1929. This incident was one of the greatest economic downfalls in history and the longest depression era that has ever occurred. Millions of individuals lost their jobs, as well as, money that was entrusted into the stock market. This tragedy will be forever known as The Great Depression. Even though the stock market had crashed, it was not the main reason of The Great Depression, but it did shake the nation’s financial system. It also revealed a major structural flaw in the economy and government. Some causes of the depression that were also involved were war debt, an oil scandal, and overproduction in industries. Times were rough and as far as recovering there was still
There are a many reasons for the Great Depression. One in particular was the Stock Market Crash of 1929. The stock market crash that came about on Black Tuesday, October 29, 1929 was a cause that led to the Great Depression. A few months after the crash, many stockholders lost more than $40 billion dollars. Even though the stock market regain a few of its losses by end of 1930’s but it wasn’t enough to bring America back to what it was. Then there were also many bank failures. There were approximately 9,000 banks that failed in the 1930’s. Many of individual’s deposits were uninsured and when the bank failed individuals lost all their savings. The many banks that were still holding steady were concerned of their financial status during that