The Causes of the Wall Street Crash and Depression
For this statement, there will be evidence provided to support the
statement
and criticisms from historians on the policies of the US Government.
However, this
answer will also include reasons for the Crash and Depression that
were at the fault of
others rather than the US Government.
The US Government began to put tariffs on foreign goods during the
Boom
years. This was done to protect the profits of their own products and
therefore, all or
most foreign competition were dealt with as their prices had risen
with the
introduction of the tariffs to a price which the average American
could not afford and
then therefore would prefer the American product due to its cheaper
price. The
introduction of tariffs, which at first benefited the US Government,
began to turn on
the US as the angry and disappointed foreign countries decided also to
introduce their
own tariffs on US goods. There was a major change in the import/export
goods
industry as the US began to fall in the export industry as foreign
people would not buy
American goods because of the high prices. This fall in the export was
entirely the
fault of the US as they only introduced the tariffs to protect their
own goods but
instead it turned onto them causing damage to them.
During the war the United States government had paid an unheard of $2
a
bushel for wheat, but by 1920 wheat prices had fallen to as low as 67
cents a bushel[1].
Farmers fell into debt; farm prices and food prices decreased heavily.
Although there
were some attempts to help farmers were made in 1923 with the
Agricultural Credits
Act, farmers were generally left out in the cold by the government.
Farmers also
produced more than actual demand throughout the boom years and this
eventually led
to prices in farmer produce dropping so that farmers could actually
The Roaring Twenties approached and the citizens in Colorado were facing rough times. In 1920, many people such as farm owners, manufacturers, and even miners were having a hard time making a living due to an economic downfall. The farmers especially, where facing the toughest of times. The price of various farm-grown goods like wheat, sugar beets, and even cattle was dropping because their goods were no longer needed by the public. Wheat had dropped in price from $2.02 in 1918 to $0.76 by the time 1921 came around. Sadly, the land that they were using to grow wheat became dry and many farmers had to learn to grow through “dryland farming” which became very popular in the eastern plains from 1910 to 1930 (Hard Times: 1920 - 1940). Apple trees began to die due to the lack of desire for apples, poor land, and decreased prices. Over the course of World War I, the prices of farm goods began to increase slowly. Farmers were not the only one facing this economic hardship while others in big cities were enjoying the Roaring Twenties.
The Great Depression was a period of first-time decline in economic movement. It occurred between the years 1929 and 1939. It was the worst and longest economic breakdown in history. The Wall Street stock market crash started the Great Depression; it had terrible effects on the country (United States of America). When the stock market started failing many factories closed production of all types of good. Businesses and banks started closing down and farmers fell into bankruptcy. Many people lost everything, their jobs, their savings, and homes. More than thirteen million people were unemployed.
The country at the time was in the deepest and soon to be longest-lasting economic downturn in the history of the Western industrialized world and this caused years of over-cultivation of wheat, because “during the laissez-faire, expansionist 1920’s the plains were extensively and put to wheat - turned into highly mechanized factory farms that produced highly unprecedented harvests” (Worster 12). ¬The farmer’s actions were prompted by the economic decline America was facing. With the economy in a recession, farmers were looking for a way to make a living and in 1930 wheat crop were becoming very popular. In 1931 the wheat crop was considered a bumper crop with over twelve million bushels of wheat. Wheat was emerging all over the plains. The wheat supply forced the price down from sixty-eight cents/bushel in July 1930 to twenty-five cents/bushel in July 1931. Many farmers went broke and others abandoned their fields, but most decided to stay despite the unfavorable
It has been said that every good thing must arrive at an end. On account of the Roaring Twenties that end came suddenly and startlingly. It is simple for one to think back upon the monetary circumstance that prompt the accident and disparagement the specialists for not seeing the indications of a potential calamity. Be that as it may, it was not all that simple for them to see such an accident coming. The 1920 's were a blasting decade and stock costs appeared to be at an unfaltering move for an apparently interminable ascent. Numerous elements can be ascribed to the reason for the accident however nobody element can be singled out as the lone reason. The real reasons for the share trading system accident of 1929
During 1928, the stock market continued to roar, as average price rose and trading grew; however as speculative fever grew more intense, the market began to fall apart around 1929. After the stock market crash, a period began that lasted for a full decade, from 1929 to 1939, where the nation plunged into the severest and the most prolonged economic depression in history - the Great Depression. During this inevitable period, the economy plummeted and the unemployment rate skyrocketed due to poor economic diversification, uneven distribution of wealth and poor international debt structure.
The causes of the Great Depression of the 1920's and 1930's has been argued about for generations. Most people agree on several key topics and that it was the severity and length of time the Depression lasted that was actually the most remarkable. Hoover made many noteworthy attempts to try and solve this crisis, yet in the end it was President Roosevelt and his "New Deal", that brought many Americans hope for the future.
Explain the underlying causes of the Depression, and evaluate President Hoover’s attempts to help the economy. What are some lessons that can be learned from the Depression? Explain and support your answer. The Great Depression, is known as THE worst economic depression in the history of the United States, but it was not caused by just one factor, instead, it was a combination of domestic and worldwide conditions led to the Great Depression. The effects of the Great Depression were felt across the world, not only here in America but it was a direct cause to the rise of Hitler in Germany, leading to World War II. Here in America, there were several causes that led to the Great Depression. There was the chronic agricultural overproduction and
It is said that the cause of the catastrophic stock market crash known as the great depression was due mostly to uncontrolled political and industrial systems otherwise known as capitalism. However, the timeline leading up to the Great Depression proves that many other factors played a role in the stock market crash that occurred in the decade of the 1930's. So lets take a look at rather four, factors contributing to the great depression that we will further discuss in the following paragraphs. Four of the main causes that led up to the great depression were unequal distribution of wealth, uncontrolled political and industrial systems, high tariffs and war debts.
The Great Depression was the longest American slump in the economy to ever occur. The Great Depression lasted for about a decade between 1929 and 1939, the dates of the Stock Market Crash of 1929 and the starting of World War II. A number of factors actually caused the Great Depression. One commonly known factor said to have caused the Great Depression is the Stock Market Crash of 1929, although this is not directly correct. The market crash was only a symptom of, as well as a transition into, the Great Depression. Other symptoms and causes includes, wealth inequality, overproduction, stock speculation, excess loaning, deflation, unemployment, and no profits.
Historians have found this to be a remarkable period of time not due to its occurrence but to its durations and effect.
During the years of 1914-1918 was “the greatest wars to end all wars” known as World War I that jumpstarted our journey towards the Great Depression. In this war it involved fighting in between nations, alliances, imperialism, militarism, nationalism, and assassinations. After all this fighting came the Roaring 20s. The Roaring 20s was a time period when many people defied prohibition, indulged into new styles and art, and the economy was at an all time high. Now imagine having a luxurious mansion and you leaving your family at home to go to work at your fancy job. Then you come home that evening and you’re all of a sudden broke. Unreal right? Well this was what happened to many families on October 29, 1929 when the stock market crashed and the Great Depression started. United States economy took a turn for the worst and brought about devastation which resulted into problems for the American people/government and them having to deal with it in different ways.
At war time, Roosevelt demanded that good military jobs were given minorities. With these jobs came fair compensation and respectable benefits. When Pearl Harbor was bombed it transformed the U.S. economic and social status for good. Some say that the bombing of Pearl Harbor marked the end of the Great Depression. When the World War II began troops were needed. Men were drafted and women were needed to work in factories and stayed behind to sustain the family.
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.
The Wall Street Crash and The Great Depression When the stock market collapsed on Wall Street on Tuesday, October 29, 1929, it sent financial markets worldwide into a tailspin with disastrous effects of the sand. The German economy was especially vulnerable since It was built out of foreign capital, mostly loans from America and was dependent on foreign trade. When those loans suddenly came due and when the world market for German exports dried up, the well oiled German industrial machinery quickly ground to a halt. As production levels fell, German workers were laid off. Along with this, banks failed throughout Germany.
Imagine yourself in a situation where you could never eat enough in a day because you weren’t sure there would be a meal waiting for you the next day. Imagine if those considered poor fell from even greater heights and landed in an even deeper pocket of desperation. Imagine if the poorer you were and the hungrier you became. The hunger rendered you weak and with this weakness you began to find it difficult to think clearly and to function properly. Imagine if you needed to find work to support a family, but you could not muster the strength to look for a job because you needed to first find food to get the energy to move. Imagine if riches, power, and even wealth made no difference to your situation, everything could be lost and nothing could be gained. Imagine that despite everything that has happened, a man comes to you, and tells you that all the hardships you have come face to face with have been nothing but temporary inconveniences. He tells you that the difficulties of the disarray are not stronger than you, and you will move onward with your head held up high. Would you believe this man? Now, imagine yourself living during The Great Depression