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Factors that Led to the Great Depression

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It was December 31, 1928, and financial heads everywhere were in total bliss. The 1920’s was a decade of good times and wealth. They thought the trend was here to stay. In 1929, the prosperity ended in the United States. Working class individual were buying stocks but because no regulations was in place to over see production and control the disparities of wealth gap between the working class citizens and the well to do exploded (Bali 225). This set the tone for the overproduction in industry that led to the bubble because many workers could not afford to buy the industrial output. Also, during the 1920’s, credit was introduced and the stock market was booming. What caused the worst depression in history? What events led up to the economic failure? Was the government aware that the crash was coming? Traditionally, President Roosevelt has been lauded as a savior of the economy and one of the greatest presidents the United States has ever had. However, there is another way to look at the causes of the Great Depression.
Average working individuals went into debt stocks had no defined value, but was based upon demand. If the stock was popular, the price increased. If the stock was unpopular, then the price decreased. For example, many people in the 1920’s made so much money that they thought they could never lose with buying stock in American companies. Men such as Jesse Livermore became famous from buying and selling stock from the US treasury (Chancellor). This was an alternative way to become wealthy away from the Rockefellers and the Carnegies who made their fortunes from oil wells and steel mills. Many people who were money lenders gained success because of stock. Little did anyone know, the Great Depression was on the horizon.
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...nd unfair treatment between economic classes, which lead to the bubble.

Works Cited

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Bali, Selçuk. “Comparisons between the Long Depression, the Great Depression, and the Global Financial Crisis.” International Journal of Management Economics & Business 8 (16) (2012): 223–243. Web. 30 Jan. 2014.
Chancellor, Edward. “When the Bubble Burst.” Wall Street Journal Eastern Edition 34 (1999): 18. Web. 1 Mar. 2014.
Gjerstad, Steven, and Vernon L. Smith. “Balance Sheet Crises: Causes, Consequences, and Responses.” CATO Journal 33.3 (2013): 437–470. Web. 18 Feb. 2014.
Scaliger, Charles. “The Great Depression (Cover Story).” New American 24.13 (2008): 34–38. Web. 17 Feb. 2014.
“The Great Depression.” Public Broadcasting Services. Web. 1 March. 2014.
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