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Causes of great depression dbq
Explain the causes of great depression
Causes and effects of great depression
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"Black Thursday." The name itself sends shivers down your spine. October 24, 1929 the New York Stock Exchange crashed signaling the end of the Roaring Twenties and the start of the Great Depression. A depression can be defined as, "a prolonged deep recession." A recession is, "a period during which aggregate output declines." (Case 118) This was certainly quite a change, as in the twenties the economy seemed to be booming around the world. There was rapid increase in industrialization, and drastic improvements in technology. Wages, consumer spending, and stock prices were high and seemed to keep rising. In fact, as people kept buying on margin, (speculating that the upward trend would continue) billions of dollars were invested which did at first keep pushing the stock prices ever higher. People poured their life savings into the market, mortgaged their homes, etc… during this crazed time period. However, it soon happened that this buying craze was followed by an even wilder selling spree. On that fateful day in October prices dropped just about as low as they could get as investors tried selling their holdings. In fact, by the end of the day the New York Stock Exchange had lost $4 billion, taking the exchange clerks working straight until 5 AM the next day to clear all of the transactions that had taken place the previous day. Several days after this, panic occurred as people began to realize just what had happened. Thousands of people were now financially ruined. Many banks that had participated in speculative investments failed as well, and this caused many "run on banks." Each and every player contributed to the downward spiral that was sucking the world into the Great Depression. (Underwood)
However, there is more to the cause of depressions and recessions than just the role of the financial sector and speculative investments. Yet, why do I mention the ideas of a booming economy suddenly becoming a state of despair and perhaps even turning into a recession or depression? In watching the film Roger & Me I feel like Flint, Michigan experienced these events because of the decisions of General Motors. Flint was at first a booming economy, but it soon became one filled with much poverty.
I believe that Roger & Me deals, at least in part, with the issue of
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
Since being founded, America became a capitalist society. Being a capitalist society obtains luxurious benefits and rather harsh consequences if gone bad. In a capitalist society people must buy products and spend money to keep the economy balanced, but once those people stop spending money, the economy goes off balance and the nation enters a recession. Once a recession drastically takes a downturn, the nation enters what is known as a depression. In 2008 America entered a recession and its consequences were severe enough for some people, such as President Barack Obama, to compare the recent crisis to the world’s darkest economic depression in history, the Great Depression. Although the Great Depression and the Great Recession of 2008 hold similarities and differences between the stock market and government spending, political issues, lifestyle changes, and wealth distribution, the Great Depression proved far more detrimental consequences than the Recession.
In 1929 the United States had entered an economic slump known as the Great Depression. The Great Depression was the longest financial decline in American history. The sudden, devastating collapse of US stock market prices on October 29, 1929, known as Black Tuesday, was just the beginning of this economic decline. The Great Depression changed society, socially and economically in many ways, including: family life, crime rates, and businesses.
The Stock Market crash of 1929 was a terrible event in American history, creating chaos and panic. The crash was caused by an overproduction and underconsumption of goods, and use of credit in the market. People would use credit to buy stocks, and could not afford to repay their loans. This created a failure among banks, overall affecting the nation as a whole. In October of 1929, the Stock Market crashed leading to billions lost in the market, sparking the great depression. ("Overproduction Seen as One of the Cause of Our Most Recent Crisis.")
After the civil war, United States took a turn that led them to solidify as the world power. From the late 1800s, as the US began to collect power through Cuba, Hawaii, and the Philippines, debate arose among historians about American imperialism and its behavior. Historians such as William A. Williams, Arthur Schlesinger, and Stephen Kinzer provides their own vision and how America ought to be through ideas centered around economics, power, and racial superiority.
However, in 1929 when stocks had soared to an all-time high, in September they plummeted. This day in history is known as Black Thursday and is remembered as the Wall Street Crash of 29. The crash hit people's interests hard. and Americans all over lost a lot of money. Banks had to spend all of the money they had on regaining the economy, and agricultural needs.
Beginning on Black Tuesday, October 29th, 1929, a total of 14 billion dollars was lost in America’s economy. Near the end of the week the 14 billion turned into a total of 30 billion dollars (The Great Depression Facts). Many events during the Stock Market Crash caused damage to the economy and lifestyle of the country, ending with recuperations from The Depression.
Imperialism in America At the turn of the century, America and the views of its people changed. Many different ideas were surfacing about issues that affected the country as a whole. The Republican Party, led by William McKinley, was concentrating on the expansion of the United States and looking to excel in power and commerce. The Democratic Party at this time was led by William Jennings Bryan, who was absorbed in a sponge of morality and was concerned with the rights of man.
The Great Depression often seems very distant to people of the 21st century. This article is a good reminder of potential problems that may reoccur. The article showed in a very literal way the idea that a depression can bring a growing country to its knees. The overall ramifications of the event were never discussed in detail, but the historical significance is that people's lives were put on hold while they tried to struggle through an extremely difficult time.
middle of paper ... ... It is evident that although we may be entering into a recession on different terms than the one before, the United States is still in danger of once again becoming a victim of another Great Depression. The Great Depression is a time in the history of the United States that people have learned and gained knowledge from. Its harsh times and conflicts have been written about in books, seen in movies, talked about on radios, and told to families throughout the generations.
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
There were two different time periods where Imperialism occurred. The first wave of imperialism, called the 'Old' Imperialism, lasted from around 1500 - 1800. The 'New' Imperialism lasted from around 1870 - 1914. The three main differences that we will discuss today are the differences in economics, politics, and the motive behind all of this.
On Thursday, October 24th, 1929, people began to sell their stocks as fast as they could. Sell orders flooded the market exchanges. (1929…) This day became known as Black Thursday. (Black Thursday…) On a normal day, only 750-800 members of the New York Stock Exchange started the exchange. (1929…) There were 1100 members on the floor for the morning opening. (1929…) Furthermore, the exchange directed all employees to be on the floor since there were numerous margin calls and sell orders placed overnight. Extra telephone staff was also arranged at the member’s boxes around the floor. (1929…) The Dow Jones Average closed at 299 that day. (1929…)
The Great Depression was the deepest and longest-lasting economic downfall in the history of the United States. No event has yet to rival The Great Depression to the present day, although we have had recessions in the past, and some economic panics, fears. Thankfully, the United States of America has had its share of experiences from the foundation of this country and throughout its growth, many economic crises have occurred. In the United States, the Great Depression began soon after the stock market crash of October 1929, which sent Wall Street into a panic and wiped out millions of investors ("The Great Depression."). In turn, from this single tragic event, numerous amounts of chain reactions occurred.
Inevitably, all of the gains were ended. On October 24, 1929, Thursday, the prices for stocks plummeted. Many people were selling their stocks and margin calls were sent out. People even committed suicide because of all the money lost. On “Black Thursday”, 12.9 million shares were sold, doubling the previous record. Joseph Kennedy did well by selling what he owned so he would have money when the inevitable depression happened. (Source 6)