The Great Depression

The truth behind the stock market crash is that it was the event that caused the already unstable economy to go over the limit. If the president and the stock market crash did not cause the Great Depression, then what did? According to research done on the Great Depression, the causes rest on of different factors, but can be put under two main categories. The responsibility for the Great Depression falls not only on the Stock Market Crash, but also on the maldistribution of wealth, an unstable economy and the wild stock market practices of the 1920’s. The largest reason for the growing gap between the rich and the working-class people was the sudden increase in manufacturing during the 1920’s.

The nineteen-twenties is most commonly known because of the Great Depression., But in two thousand-eight, there was also a stock market crash, known as the sub-prime crash, along with the housing market falling a bit itself as well. Bet you did not even hear that, and if you did it probably was not much. Both of these major markets where a result of society’s careless spending habits. The self indulgence of the nineteen-twenties and the great depression affected the Instant gratification of the two thousands so much that it caused a relapse in history causing the stock market crash of two thousand and eight. The stock market is where you buy or sell stocks in a company.

In 1929 the stock market crashed, triggering the worst depression ever in U.S. history, which lasted for about a decade. During the 1920s, the unequal distribution of wealth and the stock market speculation combined to create an unstable economy by the end of the decade. The unequal distribution of the wealth had several outlets. Money was distributed between industry and agriculture within the U.S.; in social classes, between the rich and middle class; and lastly in world markets, between America and Europe. Due to the imbalance of the wealth, the economy became very unstable.

The Great Depression was a huge economic downfall in North America and involved many other industrialized countries of the world. The Depression began in 1929 and lasted for about ten years. Millions of people lost their jobs along with many businesses going bankrupt. The common misconception of the Great Depression is people think that the stock market crash was the main cause for it. There were many causes for the Depression; unequal distribution of money during the 1920’s was the main cause of the Depression.

This time period, known as The Great Depression, was a 10-year national crisis that led the country to economic depression and mass unemployment (The Great Depression). “It ranked as the worst and longest period of high unemployment and low business activity in the 1900s” (Mitchener). Many factors led the United States into its longest financial despair. World War I caused a devastating economic slump throughout Europe. Many countries resorted to postwar inflation to help defray the debt caused by the war.

I. Introduction The Great Depression was a heavy economic depression in the decade before World War II. An economic depression is defined as a substantial and sustained shortfall of the ability to purchase goods relative to the amount that could be produced using current resources and technology. [1] The Great Depression affected most national economies in the world throughout the 1930s. The depression mostly affected industrial countries such as USA and United Kingdom, and caused the increase in unemployment.

People began to fear that the boom was going to end, the stock market crashed, the economy collapsed and the United States entered a long depression. The Great Depression of the thirties remains the most important economic event in American history. It caused enormous hardship for tens of millions of people and the failure of a large fraction of the nation’s banks, businesses, and farms. The stock market crash in October 1929 is believed to be the immediate cause of the Great Depression, but there were many other factors and long-term causes that developed in the years prior to the depression. The 1920’s may have been prosperous for some Americans, but the growing prosperity was actually weakening the economy.

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

Going through all this just made him a stronger man. This gargantuan mess was all created because of the Stock Market crash of the 1930’s. This was a time when the huge stock market fell to the ground. The crash hurt so many American families including Braddock. Even though the Great Depression ended a while ago there are similar things that happened in the Great Depression that are happening in 2010.

But when the stock market crashed, the rich entrepreneurs, and the lower class citizens alike, lost everything, and the unemployment rates soared. Not only was high unemployment rates caused by the st... ... middle of paper ... ...nd people just trying to sell their homes were harmed by this because there were items available for a lower price. Putting regulations on the percentage a loan can be, and the ability to give out risky loans would assist in averting this crisis in the future. In the life span of one person, a country can go through many wars, it can be the cause of a global economic crisis and come out as the world leader, and somehow fall right back into economic hardship. This is the life that many who lived in the Great Depression have seen.