The Stock Market crash caused the Great Depression by making investors and companies losing majority of their money. The stock market crash happened on October 29, 1929 and was caused by the trading and selling of 12.9 million stocks. The Great Depression lasted from 1929 to 1939 and was the worst economic crisis which caused many people to become unemployed, businesses, and banks started to close and fail. Also the depression challenged American people and families by putting them in economic and social issues. Millions of people and families lost their savings and many banks which failed in the duration of the
The banks were directly affected by the economic collapse, causing many to shut down. The Depression was said to have ended in the 1930’s if it weren’t for the collapse of the international economic system as well (Who Built America? 39... ... middle of paper ... ...RL, Third Pic down) you can see a picture of “migrant workers” standing next to a sign of their community, which they live and work in. This shows how even the youngest children were given work during this crisis. The Great Depression like the Drought hit America really hard.
Learning from the Great Depression Over the course of history, America has dealt with its share of economic troubles. One of America’s darkest moments, economically, came in the year of 1929. On October 29th, 1929 America’s stock market crashed. This would become what we now know as the Great Depression. The Great Depression lasted approximately ten years.
The Great Depression was the single worst economic collapse in world history. Many people in the world lost their jobs, banks lost their money, and nearly all faith in the economy was lost. Unemployment rose to a record 33% in some places during the depression. The Great Depression was one of the most important things to happen in world and financial history. The effects of The Great Depression lasted for many years.
“The result was drastically falling output and drastically rising unemployment; ... ... middle of paper ... ...its were contracting it; The Fed's inaction was the reason why the initial recession turned into a prolonged depression; The economy continually sank throughout Hoover's entire term. Under Roosevelt's New Deal, it rose five out of seven years. Attempts to blame Big Government for the Depression do not withstand serious scrutiny; The Smoot-Hawley Tariff had a minor impact because trade formed only 6 percent of the U.S. economy, and reducing trade gave Americans only that much more money to spend domestically. Hoover's other attempts at government intervention came mostly during his last year in office, when the Depression was already at its depth; The first nations to come out of the Great Depression were Sweden, Germany, Great Britain, and then everyone else did so after they adopted the Keynesian solution of heavy deficit government spending and the Keynesian economic policies have eliminated the depression from the world's economies in the six decades that have followed. Works Cited WWW.huppi.com WWW.english.uiuc.edu Nelson Cary Kennedy, David Freedom From Fear: The American People in Depression and War Oxford, New York 1999 Oxford University Press
By 1932, U.S. manufacturing had dropped to 54% of its money, and unemployment had gone up to between 12 and 15 million workers. The Great Depression began in the United States, but then had turned into a worldwide economic problem. The United States was trying to come out from the depression as the main one in the depression. National economies had been weakened by the depression itself, but by war debts in Germany and other defeated nations to. So once the American economy had dropped and the money of American investments to Europe was gone, the depression had become worst than nations that were mostly in debt to the United States, Germany and Great Britain.
1929 and 1939 was the deepest and longest-lasting economic decline in the history of the Western industrialized world. The Great Depression began, after the stock market crash of October 1929, which sent Wall Street into a panic and wiped out millions of investors. Over the next couple years, consumer spending and investments dropped, causing steep declines in industrial output and rising levels of unemployment as failing companies lay off their workers. In 1933, when the Great Depression reached its all-time low, 13 to 15 million Americans were unemployed and almost half of the country’s banks had failed. Though the relief and reform measures put into place by President Franklin D. Roosevelt helped lessen the worst effects of the Great Depression, the economy did not fully turn around until after 1939, when World War II kicked American industry into high gear.
Thousands flocked to the banks to withdraw their money. With so much output, and so little input, banks nation-wide began failing. In the first eight months of 1930, seven hundred forty-four banks went under. During the 1920’s only one percent of the population owned forty percent of the nation’s wealth. But when the stock market crashed, the rich entrepreneurs, and the lower class citizens alike, lost everything, and the unemployment rates soared.
The Great American Depression of the 1930's The economic depression that beset the United States and other countries in the 1930s was unique in its magnitude and its consequences. At the depth of the depression, in 1933, one American worker in every four was out of a job. In other countries unemployment ranged between 15 percent and 25 percent of the labor force. The great industrial slump continued throughout the 1930s, shaking the foundations of Western capitalism and the society based upon it. Economic Aspects President Calvin COOLIDGE had said during the long prosperity of the 1920s that "The business of America is business."
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.