The Great Depression And The Stock Market Crash Essay examples

The Great Depression And The Stock Market Crash Essay examples

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It is a common misconception that the Great Depression began with the stock market crash in 1929. While the stock market crash is a contributing factor, it is not in fact the cause of the Great Depression. In actuality, The Depression began because of many inept government and banking systems; these systems led to a complete and total collapse in the world and market trade. The question is, how did the depression start, and why was no one able to stop it?
To begin with, the United States economy in the 1920’s was not exactly perfect. When many think of the twenties they think of flappers and Champaign, many would call it the Roaring 20’s. This was a time when domestic consumption was at an all-time high, this means that Americans were spending more and had the extra cash to spend. This is why many see the 1920’s as a time of prosperity and wealth. With optimism in the air, people decided to invest their money in the stock market. World War Two had just ended and people were very enthusiastic about Americas future, and more specifically, its economy. People were literally scrambling to get into the stock market; it was seen as the ultimate method to get rich quick. People were so confident in the stock markets never-ending rise in prices that many people didn’t consider the risk that come with investment. Some banks were even investing in the stock market; with their customer’s money, and without their consent or knowledge. When the crash happened on October 4th (Black Friday), many people lost their money. But believe it or not, only 3% of Americans owned stock.
Another factor that is often overlooked is the increase in domestic consumption. The problem was not necessarily the increase in consumption, but more so because of th...


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... Unfortunately, these programs just didn’t have enough money to truly make a difference.
What Hoover did was just never good enough compared to what he wasn’t doing. The federal government turned a blind eye to the much of Americas suffering. Instead of letting the Federal Government help, Hoover told himself that the economy would fix itself. “He relied primarily on private businesses and state and local governments to stimulate the economy, and that was insufficient.” The reason that the Federal Government did nothing was because it had never had to do anything like this before. The entire weight of Americas failing economy was put on their shoulders, so it’s not that surprising that they were incompetent on how to handle the situation. Many suffered greatly, the reason we study the hows, whats, whens, wheres, and whys, is because we don’t want to repeat history.

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The Great Depression And The Stock Market Crash Essay examples

- It is a common misconception that the Great Depression began with the stock market crash in 1929. While the stock market crash is a contributing factor, it is not in fact the cause of the Great Depression. In actuality, The Depression began because of many inept government and banking systems; these systems led to a complete and total collapse in the world and market trade. The question is, how did the depression start, and why was no one able to stop it. To begin with, the United States economy in the 1920’s was not exactly perfect....   [tags: Great Depression, Wall Street Crash of 1929]

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