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The Cause And Economic Impacts Of The Great Depression

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The phrase “use it up, wear it out, make it do or do without” was used in abounding households during the Great Depression. The Great Depression was the most severe and longest depression experienced by anyone ever. It was a total economic slump that began in North America in 1929. Consumer spending and investment declined, causing industrial output to lessen which led to unemployment. 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…show more content…
During the summer of 1929, consumer spending dropped and excess goods began to pile up. At the same time, the prices of stocks continued to increase. Eventually stocks became so high that they wouldn’t match future earnings and investors began selling all their all of their stocks. Approximately 12.9 million shares were sold that day, known as “Black Thursday.” Five days later, almost 16 million more stocks were sold on a day called “Black Tuesday.” Consumers had lost confidence in the stock market, the decline in spending and investment led business to slow down production and began firing workers (Nelion; “The Great Depression
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