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Causes of great depression dbq
Explain the causes of great depression
Causes and effects of great depression
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Throughout history America has quite a few recessions, but nothing as devastating as the Great Depression. The Great Depression was a financial collapse so terrible that it not only ripped through the United states, but affected the world (such as Britain, France, etc.) as well. The major factors that caused the Great Depression were maldistribution of purchasing power, credit structure, and debt structure. All of this plus some additional factors made the Great depression an inevitability.
The maldistribution of purchasing power was a major factor that caused the Great Depression. At the time companies put little money into advertising and getting people to want to buy their product, but instead focused on making the product. This led to little
The symptoms of the Great Depression began during the World War I and the economic boom of the 1920s, which was built on a shaky foundation. As a result, the Great Depression remained inevitable due to poor economic diversification, uneven distribution of wealth and poor international debt structure. However, although the Depression shook much of American society and culture, the capitalist system survived, the American people remained receptive and the belief in the "American way of life" didn't falter throughout the long years of economic despair.
The Great Depression was most likely the most severe and enduring economic crashes in the 20th Century (Source 1). That included a quick drop in the supply and demand of goods and services along with a big rise in unemployment (Source 1). Many things were the cause of the Great Depression, one is the U.S. stock market crash (Source 1). And two is the widespread failure in the American bank system
There were many causes for the Great Depression. The first and one of the largest was the stock market crash. Before 1929 the stock market was flourishing and everyone wanted to buy stocks. People were so confident in the stock market that they were buying “on margin”, which meant that brokers would lend them 10% of the money they invested (D1). The problems began when stocks were being over speculated. When people began to realize this, they began selling there shares. On October 29, 1929, 16 million shares were sold (D9). This day became known as “Black Thursday”, the day the stock market crashed (D12). The second reason was the overproduction of goods. Factories had already produced too many goods and now there was no demand for them. The government began to raise tariffs to protect Canadian industries but things only led downhill from there.
Some say that the great depression was caused partially by social democracy and planned economies. And although this could be true, it originally started from debts from World War I, and of course the stock market crashing in 1929.
The Great Depression was just that, great. It was a unique experience that America has only gone through once… or perhaps twice? Maybe the 2008 American economic crisis did not lead to a recession at all; maybe it led to a second Great Depression. Of course that’s utter insanity, because everything from the numbers to the feelings show that 2000-2010 was nothing like the twenties and thirties. Realistically the most recent American recession was a barnacle on the whale of the Great Depression. Children of the recession can confirm to you that very little was similar to their twenties brethren. There was no widespread disgrace and debilitating state off living, there was only mild annoyance.
Since being founded, America became a capitalist society. Being a capitalist society obtains luxurious benefits and rather harsh consequences if gone bad. In a capitalist society people must buy products and spend money to keep the economy balanced, but once those people stop spending money, the economy goes off balance and the nation enters a recession. Once a recession drastically takes a downturn, the nation enters what is known as a depression. In 2008 America entered a recession and its consequences were severe enough for some people, such as President Barack Obama, to compare the recent crisis to the world’s darkest economic depression in history, the Great Depression. Although the Great Depression and the Great Recession of 2008 hold similarities and differences between the stock market and government spending, political issues, lifestyle changes, and wealth distribution, the Great Depression proved far more detrimental consequences than the Recession.
A major cause of the Depression was that the pay of workers did not increase at all. Because of this, they couldn't afford manufactured goods. While the factories were still manufacturing goods, Americans weren't able to afford them and the factories made no money (Drewry and O'connor 559). Another major cause related to farmers. Farmers weren't doing to well because they were producing more crops and farm products than could be sold at high prices.
The Great Depression was one of the most important historical events that has happened within the last century that impacted every Americans life one way or another. There were many factors that could be an explanation of why The Great Depression happened, but there is no one definitive list of the reasons of what caused The Great Depression. It was a mixture of events in the United States and outside of it that probably led to this period of time to happen. The main reason that everyone could agree on was the event of the Wall Street Crash of 1929. Because of The Crash, it made people go on a bank run which made thousands of banks to close because they simply did not have all the money for all the people wanting to withdraw their savings. Because everyone was trying to take their savings out, most people were turned down by the bank and essentially lost of their savings in the bank. The banks were failing and because they had no more money left, this stopped the banks from having available credit for people to use which made matters even worse for the people. This leads people to poverty and were left with nothing. Because people were poor and were scared of spending their money now, it made people stop buying extra things that weren't essential to live. This was the cause of the unemployment rates during this time period because if no one was buying anything, then there was no reason to keep extra workers for things people are not buying.
The Great Depression was in no way the only depression the country has ever seen, but it was one of the worst economic downfalls in the United States. As for North America and the United States, the Great Depression was the worst it had ever seen. In addition to North America, the Depression greatly affected Europe and other various countries throughout the world significantly during the 1920’s and 1930’s. The Great Depression was caused by the collapse of the Stock Market, which happened in October of 1929. The crash exhausted about forty percent of the paper values of common stocks. It was the worst depression due to the fact that at the time of the Great Depression the government involvement in the economy was higher than it had ever been. A unique government agency had been set up exclusively to prevent depressions and their related troubles for instance bank panics. All of ...
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). As for the cause and what lead to Great Depression, the issue is still in debate among eminent economists, but the crux provides evidence that the worst ever depression ever expereinced by Global Economy stemed from multiple causes which are as follows:
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.
Most Americans began to live a better life from 1922-1929 otherwise known as the seven fat years. This was due to the government’s relaxed approach towards the economy. The laissez-faire system was encouraged because there was little intervention from the state. Businessmen didn’t have to listen to government they could make their own decisions in order to produce profit and wealth. Government’s approach was pro-industry and anti-labour which meant that there was no protection for the workers thus leading to inequality, long working hours and not a enough pay for the workers to really feel happy or satisfied. Powerful monopolies were able to grow unchecked. Although the laissez is a reason for the crash it isn’t the only one reason. It can be argued that the economic isolationism, loans to Germany and other countries and unequal wealth and income etc. were the causes of the crash because America had many more influences than government not intervening and they were involved with a lot of things and people and would come out on the other side biting more than they could chew during the depression.
The Great Depression was the biggest and longest lasting economic crisis in U.S history. The Great depression hit the united states on October 29, 1929 When the stock market crashed. During 1929, everyone was putting in mass amounts of their income into the stock market. For every ten dollars made, Four dollars was invested into the stock market, thats forty percent of the individual's income (American Experience).
The Great Depression was the deepest and longest-lasting economic downfall in the history of the United Sates. No event has yet to rival The Great Depression to the present day today although we have had recessions in the past, and some economic panics, fears. Thankfully the United States of America has had its shares of experiences from the foundation of this country and throughout its growth many economic crises have occurred. In the United States, the Great Depression began soon after the stock market crash of October 1929, which sent Wall Street into a panic and wiped out millions of investors ("The Great Depression."). In turn from this single tragic event, numerous amounts of chain reactions occurred.
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.