On the following Tuesday the stock market fell and the market was not able to get back up. This day is forever known as “Black Tuesday,” and the official start of the Great Depression. The speculation and the resulting stock market crash acted as the trigger for the already unstable United States economy. Due to the maldistribution of wealth and the unstable economy of the 1920’s, the nation headed into a decade of trouble. In response to its economic difficulties, the United States set up even higher trade barriers with other nations, causing more trouble within the nation.
The effects of The Great Depression lasted for many years. The Great Depression started on a day in American and world history that was sindged into our hearts forever; October 29, 1929 (Black Tuesday). The Dow Jones Industrial average on the New York Stock Exchange fell 12% and caused many people to lose their invested money and assets. The Depression was felt worldwide as we saw nearly 35% of all jobs and trade lost during this period of time. At the depression’s peak, the Dow Jones Industrial Average lost 89% of its assets and value.
Despite the general optimism, the market crashed again causing the great depression. The effects were devastating. Over the next three years, the unemployment rate rose to 13.6 million people and GNP decreased 45 million dollars. There are many causes to the 1929 stock market crash including speculation, WWI, Foreign investment, and a scandal that could have played a minor role. The 1929 stock market was a bull market fueled by speculation.
There are numerous reasons that led to and caused the Great Depression, but undoubtedly the biggest contributor of the slump came in 1929 when the American stock market crashed. The Wall Street Crash of 1929 sent shock waves through all the economies of industrialised nations, and plunged the Capitalist system into the worst economic slump in history. This essay will attempt to consider the effect of the Wall Street Crash in causing the Great Depression, but also consider other causes such as the massive unequal distribution in income that existed and the lasting effects of the war in the form of debts owed to the US. To understand the sheer consequence of the Great Depression we can consider a normal economy. Most economies experience a ‘Boom and Bust’ cycle, where economies fluctuate between times of prosperity and times of recession.
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.
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.
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 Great Depression was the start to a dreadful economic crisis in the American History. On October 4, 1929 a day that goes by the term “Black Tuesday” the Wall Street stock market collapsed, creating massive unemployment and pain throughout America. Many thought that this depression would only be minor, but they were wrong. This turned into a “major depression”(Who Built America? 392).
Great Depression was one of the most severe economic situation the world had ever seen. It all started during late 1929 and lasted till 1939. Although, the origin of depression was United Sattes but with US Economy being highly correlated with global economy, the ill efffects were seen in the whole world with high unemployment, low production and deflation. Overall it was the most severe depression ever faced by western industrialized world. Stock Market Crashes, Bank Failures and a lot more, left the governments ineffective and this lead the global economy to what we call today- ‘’Great Depression’’.(Rockoff).
The Great Depression The Great Depression was an economic slump in North America, Europe, and other industrialized areas of the world that began in 1929 and lasted until about 1939. There were a few main areas of focus during the Great Depression. The key areas were the Crash of the Stock Market, Unemployment Rate, the effect on the rest of the world, World War II and our political out look and the way different countries handle themselves today. The Great Depression was the longest and most severe depression ever experienced by the industrialized Western world. Though the U.S. economy had gone into depression six months earlier, the Great Depression may be said to have begun with a catastrophic collapse of stock-market prices on the New York Stock Exchange in October 1929, when President Hoover came in office.