The Great Depression The Great Depression was an economic slump in North America, Europe, and other industrialized areas of the world that began in 1929 and lasted until about 1939. There were a few main areas of focus during the Great Depression. The key areas were the Crash of the Stock Market, Unemployment Rate, the effect on the rest of the world, World War II and our political out look and the way different countries handle themselves today. The Great Depression was the longest and most severe depression ever experienced by the industrialized Western world. Though the U.S. economy had gone into depression six months earlier, the Great Depression may be said to have begun with a catastrophic collapse of stock-market prices on the New York Stock Exchange in October 1929, when President Hoover came in office.
As business fail increased and unemployment soared and as people with dwindling income had to pay their creditors it was apparent that the U.S was in the economic breakdown. The deepening depression continue with the distress of million of people who lost jobs, home, and savings from 1929 to 1932 approximately 11,000 U.S banks failed and about $ 2 billion in deposits was soon gone. Agricultural distress was intense farm price fell by 53 percent from 1929-1932. There were even more problem during that summer droughts was a major problem. Farmer from the central state have to move out seeking for a job due to the dust storm that was occurring in their state such as Texas, Oklahoma, and Missouri.
When the Great Depression reached its lowest point, almost half of America’s bank had closed and 13 to 15 million people were unemployed. In spite of the fact that the alleviation and change measures set up by President Franklin D. Roosevelt decreased the most exceedingly terrible impacts of the Great Depression in the 1930s, the economy would not completely pivot until after 1939, when World War II kicked American industry into high gear (Nelion; “The Great Depression (1929-1939)”). The Great Depression has bounteous causes, including the stock market crash on October 27, 1929 as well as everyone withdrawing their money from the banks after the stock market crash. Also contributing to the Great Depression was the uneven distribution of wealth in America. Consequently, the Great Depression also had bountiful social effects, along with effects on popular
The crash spelled disaster for the national economy. Corporations with heavy investments faced a sudden shock to their assets. This was the beginning of the depression. The national income slipped lower each year from 1929-1932, and it did not return until World War II. Unemployment became the most important problem of the depression to the people living in the US.
Stock Market Crash causes The Great Depression The stock market crash, one of the most miserable times in the history of the United States stock market. Well, the stock market had many investors who lost most of their money either by the banks or the stock market. The stock market crash caused the Great Depression by making investors and companies lose majority of their money. The Great Depression was the worst unprofitable 10 years in history. This worst time period lasted from 1929 to 1939 and it began after the stock market crashed in 1929.
The stock market crash during the 1920s, stock prices far exceeded their real value. Many stock buyers bought stock on boundary, or on money borrowed from the stock brokers. When stock prices fell many investors with margin accounts were forced to sell, driving prices down even further. Stock prices began to fall in September 1929, but in October 29 so called “Black Tuesday”, was the worst day in stock history, the stock market on that day, the prices drop dramatically. When the economy collapsed with it, people everywhere lost their jobs and homes.
People began to fear that the boom was going to end, the stock market crashed, the economy collapsed and the United States entered a long depression. The Great Depression of the thirties remains the most important economic event in American history. It caused enormous hardship for tens of millions of people and the failure of a large fraction of the nation’s banks, businesses, and farms. The stock market crash in October 1929 is believed to be the immediate cause of the Great Depression, but there were many other factors and long-term causes that developed in the years prior to the depression. The 1920’s may have been prosperous for some Americans, but the growing prosperity was actually weakening the economy.
The Great Depression was an economic problem in North America, Europe, and other industrialized countries around the world that began in 1929 and lasted until 1939. It was the longest and most stressing depression ever. The U.S. economy had gone into a depression six months earlier, but the Great Depression had begun with a breakdown of stock-market prices on the New York Stock Exchange in October 1929. The next three years stock prices in the United States had continued to drop, until 1932 it had dropped to about 20% of its value. Other than messing up thousands of individual investors, the decline in the value of good banks and other financial facilities went bad.
The Great Depression was a major depression after World War 2. It began in the 1930s and ended in the late 1930s or mid 1940s. The Great Depression had horrible effects on wealthy and poverty-stricken countries. International trade went down 50%, while personal income , tax revenue, profits and prices dropped. Cities with heavy industry were pounded by the effects of the Great Depression.
The people that were affected the most by the Great Depression were stockholders. Thousands of stockholders lost enormous amounts of money on Black Tuesday. The rapid decrease of stock prices made stockholders lose their money within one day. Even though it was a devastating loss, there was no way to predict it. From 1925 to 1929, the average stock price doubled on the New York Stock exchange, making people invest ludicrous amounts of money in the hope that they would make a hug... ... middle of paper ... ...hange crash of October 1929 and therefore the succeeding depression alerted stockholders to be concerned about their own investments within the stock exchange instead of the data of other people’s investments.