Great Depression In The 1930's

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Recommended: Explain the causes of great depression

The Great Depression was a catalyst for change in the 1930’s, with a specific range of causes forming the basis for worldwide panic and confusion – the outcome of this having profound impacts on all of Australian society. Though there would appear to be a diverse range of causes that led to this time of great change, there are a few specific instances that truly marked its beginning. One need only look at the market speculation and consequent crashes, Australia’s problematic and faltering economic relationship with Britain leading up to and during the period and national and individual extravagance and over spending, to be able to comprehend and view the profound impacts of such causes on Australia and all its citizens.
One such fundamental issue that was a catalyst/ cause for the Great Depression was …show more content…

International stock market speculation, especially in the USA, formed a foundation for a number of smaller market crashes, though one in particular that brought about international ramifications – the Wall Street Crash of 1929. The crash was brought about by persistent market speculation, and to some extent, human ignorance and complacency. Though smaller economic phenomena also facilitated to forming the basis of this catastrophic event (the crash), such phenomena included: margin loans; credit boom; irrational exuberance; a flawed banking system and overproduction. Though specifically, margin loans and the credit boom set off a chain of events that would lead to the ultimate, Wall Street crash of 1929. Margin loans became a widely used and accepted form for taking part in the share market as a consequence to stories of overnight fortunes being reported in the news, with 'regular' people asking themselves why they also couldn’t make such fortunes from these economic opportunities - these loans, put simply, were a 'buy now', 'pay later' method of credit where the buyer would place some money down, say 10%, and pay back the rest of the share, e.g.

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