preview

What Caused the Great Depression?

analytical Essay
530 words
530 words
bookmark

The 1920’s, historically known as the Roaring Twenties, was a decade of cultural and economic prosperity. Jazz music had blossomed, the flapper redefined modern womanhood, and Art Deco was peaking. Economically, there were new products and technologies, new infrastructure, and urbanization of large populations. But since everything that goes up must come down; the high spirits of the Roaring Twenties turned into years of gloom and hardship when the Great Depression came in 1929. Careless spending, unequal distribution of wealth, and overproduction of goods were all factors of this worldwide tragedy that didn’t end until the late 1930’s.
During this decade, people believed that everyone was able to be rich. John T. Raskob said that he had a firm belief that anyone not only can be rich but ought to be rich (Doc 2 ). This kind of mindset led people to buy materials that they didn’t need. They would buy faster than they were earning, which forced them to pay in installments. William E. Leuchtenburg predicted that a time would come when people on the installment plans would have to redu...

In this essay, the author

  • Explains that the roaring twenties, a decade of cultural and economic prosperity, turned into years of gloom and hardship when the great depression came in 1929.
  • Explains that people believed that everyone was able to be rich during the great depression. this mindset led people to buy materials that they didn't need, pay faster than they were earning, and reduce purchases.
  • Analyzes how the economic inequalities in the 1920s caused the great depression to be so severe. paul blanshard described the hardships of the people.
  • Explains that the great depression was caused by overproduction of goods from manufacturers and farmers, which led to lower prices in wheat and cotton.
  • Explains that people in the roarin' twenties did not believe in spending money and saving it due to their confidence in stock market and economy.
Get Access