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).
“The result was drastically falling output and drastically rising unemployment; ... ... middle of paper ... ...its were contracting it; The Fed's inaction was the reason why the initial recession turned into a prolonged depression; The economy continually sank throughout Hoover's entire term. Under Roosevelt's New Deal, it rose five out of seven years. Attempts to blame Big Government for the Depression do not withstand serious scrutiny; The Smoot-Hawley Tariff had a minor impact because trade formed only 6 percent of the U.S. economy, and reducing trade gave Americans only that much more money to spend domestically. Hoover's other attempts at government intervention came mostly during his last year in office, when the Depression was already at its depth; The first nations to come out of the Great Depression were Sweden, Germany, Great Britain, and then everyone else did so after they adopted the Keynesian solution of heavy deficit government spending and the Keynesian economic policies have eliminated the depression from the world's economies in the six decades that have followed. Works Cited WWW.huppi.com WWW.english.uiuc.edu Nelson Cary Kennedy, David Freedom From Fear: The American People in Depression and War Oxford, New York 1999 Oxford University Press
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.
Companies were ruined and people lost their trust in banks. The crash of 1929 was not the sole factor but most certainly a great cause of the Great Depression. By 1933, when President Hoover left the office, the Great Depression turned the U.S. economy into disaster as national income declined from $88 billion to $40 billion dollars, the unemployment rate stood at 25 percent, and more than 9,000 banks were closed. The effects of the Great Depression lessened only when Franklin D. Roosevelt was elected president in1933 after President Herbert Hoover. His relief and reform measures recovered the American economy from depression that plagued the country from decade
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.
The Great Depression was an economic problem in North America, Europe, and other industrialized countries around the world that began in 1929 and lasted until 1939. It was the longest and most stressing depression ever. The U.S. economy had gone into a depression six months earlier, but the Great Depression had begun with a breakdown of stock-market prices on the New York Stock Exchange in October 1929. The next three years stock prices in the United States had continued to drop, until 1932 it had dropped to about 20% of its value. Other than messing up thousands of individual investors, the decline in the value of good banks and other financial facilities went bad.
The crash that occurred on October of 1929 caused Americans to lose Thirty billion dollars and the American dollar value was 90% less than it was prior to October of 1929. Wholesale and retail food prices dropped 40% and farm prices dropped over 60%. About four million families were left unemployed and on relief support only receiving fifteen dollars a month. Because of the crash the government was required to set new regulations regarding stock market trade. The reason for this was to attempt to prevent another stock market crash from happening in the future.
The Great Depression was the single worst economic collapse in world history. Many people in the world lost their jobs, banks lost their money, and nearly all faith in the economy was lost. Unemployment rose to a record 33% in some places during the depression. The Great Depression was one of the most important things to happen in world and financial history. The effects of The Great Depression lasted for many years.
Stock Market Crash causes The Great Depression The stock market crash, one of the most miserable times in the history of the United States stock market. Well, the stock market had many investors who lost most of their money either by the banks or the stock market. The stock market crash caused the Great Depression by making investors and companies lose majority of their money. The Great Depression was the worst unprofitable 10 years in history. This worst time period lasted from 1929 to 1939 and it began after the stock market crashed in 1929.
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.