Economic Effects Of The Great Depression

Black Tuesday, October 29, 1929 was the official beginning of The Great Depression, the day the stock market crashed. The stock market business was the way of getting rich, now was a way to go bankrupt. The government determined people invested in stocks lost $40 billion. People were so far in debt that they could not pay back the banks. 13 to 18 million people across the world had no work

The Great Depression started in 1929 and lasted up until 1939. It happens to be the worst economic downturn for the United States and the the rest of the world. It caused companies and corporations to eventually go bankrupt as well as workers to be laid off. Another effect of The Great Depression is that factory production was reduced, and the banks started to shut down. In the lowest point of The Great Depression in 1933 nearly 15 million workers in America were unemployed and one half of the banks started shutting down.

The great Depression was a major crash in the history of the United States. The crash of the stock market in October 1929 was the significant cause of the great depression. People began to panic and big businesses were not able to handle the outcome. As a result, many companies dismissed workers, which left the workers with no money. People halted to purchase goods and businesses were running in loss. Furthermore, after the world war one, many European nations owed huge amount of money to the United States. The economy of these nations was shattered and had no way of paying back the

The Great Depression was a devastating time for many Americans. From 1929 to 1932, the US experienced an economic downturn that was calamitous to the lives of many people. Millions upon millions of Americans lost everything when the stock market crashed on October 29, 1929. After exiting an era that left people living a life of luxury, the stock market crash came as a surprise. As a result of the stock market crash, many became unemployed and many families were being forced to close their businesses. Although there were many factors that contributed to the cause of the Great Depression, the three main causes were The Stock Market Crash of 1929, high unemployment, a decrease in consumer purchases due to being “stuffed with stuff” during the roaring twenties.

There were many causes to the Great Depression. Some of the major causes were overproduction in factories, tariffs, debt from WW1, and the stock market crash. When the economy slowed down, many factories faced overproduction. At first, the manufacturers lowered prices and stockpiled goods, and eventually produced fewer goods. The decrease in production lead to layoffs in factories, which meant people could not afford to buy consumer goods, so sales slowed down even more, which slowed the economy down.

Few Americans in the first months of 1929 saw any reason to question the strength and stability of the nation's economy. Most agreed with their new president that the booming prosperity of the years just past would not only continue but increase, and that dramatic social progress would follow in its wake. "We in America today," Herbert Hoover had proclaimed in August 1928, "are nearer to the final triumph over poverty than ever before in the history of any land. The poorhouse is vanishing from among us."1

On Black Tuesday, October 29, 1929, the stock market saw its greatest crash in history. The next 10 years brought an economic depression the world had never experienced. Unemployment would soar, a banking crisis would lead to a global phenomenon, and Americans would find themselves struggling to survive. In addition, the government would step up their involvement in American lives, as they felt a responsibility to the people. This would lead to mixed feelings from the American people. The Great Depression affected people in many different ways. For some it led to their demise, while it brought others closer together than ever before.

Tuesday, October 29, 1929 – otherwise known as Black Tuesday, is the day of the stock market crash. This crash caused a sudden and drastic change in the economy while also starting The Great Depression which lasted from1929--1940. Because of The Great Depression, President Hoover was disliked across the country, so when the people were electing a new President they choose Franklin Roosevelt. The new President was exceptionally eager to put in new laws and programs into effect to pull the country out of the depression. Although Franklin Roosevelt's policies gave the public relief, his New Deal only helped the public in a purely phycological way. Not only did the New Deal worsen the economy, it also was hastily put together, and it effected people fleeing the Dust Bowl for "better jobs" in California.

One of the most devastating times in United States history was created by a multiplicity of avoidable events and reckless practices that all came together to halt all economic progress. This time was the Great Depression. On surface level, it is easy to assume that the Great Depression resulted solely from the huge 1929 stock market crash, but while the crash played a large role, the Great Depression was caused by multiple other factors which built upon each other to such a height and eventually implode the economy of the United States. Before the Great Depression, there were simply too many daredevil economic decisions made by millions of people that made blind leaps of faith into the market. If the market crashed, they were doomed, but the idea of getting enormous returns on their money blinded them from

Some effects on the american people are. Not trusting the banks as much as they use to, Also they need to store their money in walls which makes it hard to get money back. And food is a option, How would you be able to stay alive if you have no food?, You need to buy food with money. Also the children would leave their family so families wouldn’t have to feed anymore mouths. And sense the dry farm land it causes dry storms or a dust storm a dust storm hit they called it the “Dust Bowl” Because of the bowl like shape and the dusty contains.

The Great Depression was a horrible time in the United States as we have learned through years of history classes. Americans struggled physically and mentally because of the depression. Suicide and admitting to mental hospitals, strain marriages increased during these times. The Great depression affected the relation between ethnic groups; increased competition for jobs which increased hostility and violence;african americans were killed; mexican americans voluntarily left country or were deported.

“Shrunken perhaps by the vicissitudes and exigencies of the times, Broadway presented itself admirably throughout the Thirties. It not only managed to preserve the best, but also nurtured and expanded them. At the brink of the new decade, Broadway stood smaller but brighter”

To have a full understanding of this important event, first one must examine what caused the Depression. While the United States had been enduring a gradual monetary decline for some time, known as a recession, an occasion called Black Tuesday was the true inception of the nation’s collapse. Black Tuesday, occurring on October 29, 1929, was when the Stock Market crashed. This caused a panic on Wall Street as stock shares became worthless and investors were dropped. This caused a chain of steadily worsen events to occur as consumers cut back on spending, as people stopped investing, and as factories and business began firing employees. The value of money fell considerably and those who were lucky enough to still be employed received sharp wage cuts. Worse yet, banks failed across America and many citizens

Another cause of the depression was the lack of prosperity for many groups, and the lack of spending that soon resulted from this. In the early 1920s we know that the United States had a high prosperity. What is less known is that not everyone was sharing the good times. Immigrants from most countries, including those in Africa and Mexico, were sharing the same poor treatment as the Aboriginals in the United States. These groups were not doing well socially or economically and had low paying jobs. Many Americans simply could not afford to pay for many goods, and this created a massive reduction in purchasing. Factory workers suffered greatly from the reduction in purchasing; many factories had no need to keep the high levels of production going, and were forced to fire many employees. More workers still lost their jobs to machinery that could be used to the employers advantage to reduce the spending on wages. People now found themselves unemployed and unable to pay for their items previously purchased through

What was the world’s greatest economic disaster and left millions of citizens unemployed for years? The Great Depression was a major economic disaster which left the people of the world shocked. Many countries were already left in a bad position due to the effect of World War I. Countries that bought and sold on the international market were affected. The United Kingdom, France, and Germany were just a few of the affected countries that had a difficult time getting their country back to great economic shape.