What Caused The Great Depression Essay

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The Great Depression was one of the greatest worldwide economic depressions in history that occurred in the 1930s. The Great depressions began in the United States shortly after stocks plunge, however in many countries it started in 1929 and lasted into the late 1930s. It was the most widespread longest depression in history and is a great example of how the economy can fall and crash at a rapid pace. The Great Depression Started in the United States after a significant drop in prices of stock in the market. The prices began to drop around September 4,1929, and by October 29,1929, the stock market crashed leaving this day in history known as Black Tuesday (Burg 55). On this day the price of stock fell to amount that rising to a profitable …show more content…

Many of these problems go back to the mass production and World war 1 in a period where the economy was booming in the Roaring Twenties (Stresissguth 67) The Roaring Twenties left a false sense prosperity that would soon lead to high inflection a contributing factor to the depression. A major setback for the economy was World War I it was a significant burden for the United States. The war devested most of Europe and left it in economic decline with America to become the world’s banker however, Europe default on loans and bought less American products as well (Stressissguth 58). Mass production was at all time highs throughout the Roaring Twenties with factory owners enjoying the rewards while their workers struggled to make ends meet. This is when credit become popular to buy things that would be unaffordable, this led many into debt and which halted the purchasing of products, leaving warehouse full of product and the industrial production fell by 50 percent ( Stressissguth 60).The factories produced less and laid off workers, leaving workers unemployed leaving most of the perversely employed workers unable to provide the basic needs of life. Unfortunately, once the problems of the Roaring twenties arouse the economy was already on a downhill spiral for

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