How Did The Great Depression Contribute To The Status Of The Economy

It is said that the cause of the catastrophic stock market crash known as the great depression was due mostly to uncontrolled political and industrial systems otherwise known as capitalism. However, the timeline leading up to the Great Depression proves that many other factors played a role in the stock market crash that occurred in the decade of the 1930's. So lets take a look at rather four, factors contributing to the great depression that we will further discuss in the following paragraphs. Four of the main causes that led up to the great depression were unequal distribution of wealth, uncontrolled political and industrial systems, high tariffs and war debts.

The presidencies of Herbert Hoover and Franklin D. Roosevelt both fell into the time of economic crisis that began in 1930. The Great Depression would pose a challenge for both presidents to bring the United States economy back to stabilization. With two contrasting responses to this American disaster, Hoover and Roosevelt would create opposing reputations for themselves. With this economic downfall, both knew that the nation needed a solution; however, Hoover deemed it best for the federal government to stay out of the situation while Roosevelt pushed for the government to have a greater role in the economy.

With the economy stalled, business in the country slowed down but investors weren’t going to give up that easily as they continued to throw money into the market trying to keep it from crashing. But unfortunately over 16 million shares were lost, wiping out thousands of investors, putting america and the rest of the industrialized world spiraling downwards. But the stock market crashed didn’t just affect the investors, it also put a lot of people out of a job about 30% of america’s workforce, along with nearly half of america’s banks failing. Though the stock market crash was only a symptom, it still played a huge factor with the cause of the great depression. Sadly the great depression lasted till 1939 but with the help and reform measures enacted by the administration of president franklin D. roosevelt helped lessen the worst effects caused by the great depression by the year 1945. The economy would take a turn for the better around the start of world war 2 when america’s industry was

The Great Depression may be known to the world as the toughest economic period of the industrialized world that brought severe consequences to a vast number of countries in the west. It began six months earlier in the United States in1929 after the stock markets in the New York Stock Exchange collapsed, and it dragged on until 1939; in fact, historians describe it as the worst economic depression of all time given its scope and impact. Specifically, the effects of the Great Depression were felt by people and financial institutions that had invested greatly in most of the stocks that were falling. The trend continued to worsen and by 1932, stock prices had dropped to about 20 percent of their original value. By this time, many banks in the US had collapsed and other financial institutions started to decline. In effect, people lost confidence in the economy and began to take measures that would ensure they survive the seemingly endless predicament. As a result, they started hoarding money and spending was drastically reduced which meant that the demand for products was low; in the same way, production from industries became low, a situation that worsened the economic decline. America has always prided itself in the idea of capitalism; however, during the Great Depression, the idea was threatened by the looming collapse of the American economy. In this regard, it is viable to ascertain that the Great Depression was the worst collapse in the historical

The Great Depression in the U.S. was caused by many things, such as the Wall Street Crash of 1929. Many historians argue that the Stock market was just another cause of the Great Depression but one of the biggest causes was the Stock Market Crash of 1929. The value of stocks were deflating, which and stock investors were making it worst. Investors reacted by trying to reclaim the money they lost, sending the economy into a downfall. After The Great Depression stock prices slowly started to rise again but people extremely cautious with how they buy or sell their stocks. The Great Depression could have started due to many factors, but the Stock Market Crash is the main one.

obless and penniless. Many people had to depend on the government or charity to provide them with food.

The stock market crash was not caused because of the great depression, but it was a symptom. Many people were shocked of all the things happening in 1929. Although the Stock Crash happened only four days, it was the most significant crash in United States history. The Stock prices began to decline in early September. Many people couldnt’t pay to these prices, they were unbelievable. The stock prices had nowhere to go but up. About three years later, many Americans were unemployed. So many people didn’t have jobs, it was so impossible to get

Never had the flaws of capitalism been so evident or as devastating as during the decade that followed the outbreak of the Great Depression in 1929. All across the Euro-American heartland of capitalist world, this vaunted economy system seemed to unravel. For the rich it meant contracting stock prices that wiped out paper fortunes almost overnight. On that day that the American stock market initially crashed (October 24, 1929), eleven Wall Street finances committed suicide, some

The Great Depression was one of the worst if, not the worst economic downfall in US history.It started around 1920 and did not start to fade until the end of the 1930’s.

The Great Depression, often acknowledged with the Stock Market Crash of 1929, but something that is so much more than that, was a decade of economic turmoil. The Great Depression lasted from 1929-1939 consuming a long grueling decade, and as defined by The History Channel, it “was the deepest and longest lasting economic downturn in the history of the western industrialized world” kicked into fast forward by the Stock Market Crash in the fall of 1929. During the fall of 1929, Wall Street was forced into a panic, causing unforeseeable effects to the United States stock market. Following in the crash, consumer spending and investments declined, resulting in a dramatic decline of the output of industries, which came hand in hand with the spike in unemployment as these industries continued downward employees began suffering the consequences and being laid off. Preceding the stock market crash, according to Hyperhistory.com, during the time period of May of 1928 and September 1929, the “average price of stocks will rise 40 percent. The boom is largely artificial.” This is important because America had entered a recession, similar to what the United States recently went through between 2007-2009, during the summer of 1929. The price of stocks rising 40 percent causing the prices to reach a price level that according to The History Channel, “could not be justified by anticipated future earnings”. People were spending far out of their means.

The great stock market crash of October 1929 helped bring the economic upcoming of America to a screeching symbolic halt! On October 24, 1929 12.9 million shares were traded and 5 days later another 16 million shares were traded in a panic on Wall Street. All of which ended up being worthless and the investors that brought stocks with borrowed money where wiped out completely! Employee where fired, wages dropped and buying power all but disappeared. This was only one contribution to the Great Depression. Another being the Bank Failures and the Hoover Administration. By 1931 the unemployment rate was at a staggering 6 million and the countries industrial production rate fell off by half. In the fall of 1930 a banking panic began and investors had developed trust issues with their banks

The great Depression was the worst and longest economic decline experienced by the industrialized western world. Economic cycles are continuous loops of periods of business expansion followed by business contraction. This is the way economics has always been in the industrialized world and extended periods of contraction was something people had seen before. However, the Great Depression was something people had never seen before. It wasn’t merely a temporary economic set back as experienced in the in the great recession of 2007, it was a period of extreme destitution, unemployment, and panic amongst the rich and poor alike across the globe that lasted 56 months (Swarup, 212).

The Great Depression was a tremendous economic crash that affected multiple American citizens which made them assume this could be the end of the American dream. The crisis initiated the fall of 1929 with consumer spending decreasing and unsold goods accumulating. The stocks dropped an insignificant amount of 30 million dollars in the time span of two days. Bank failure started to occur after the crash with 744 banks deteriorating and a grand total of 9,000 in the 1930’s. Due to all the loss of banks, depositors noticed the amount of 140 billion dollars vanished with bank failures. Farmers during this time were also facing problems with growing grows due to the weather not producing rain. They were in need of government assistance, but with

The Great Depression was a worldwide economic crisis that began in 1929 and lasted until the late 1930s. This caused unemployment and suicides all around the world. The Great Depression was not only caused by the Stock-Market crash, but several economic factors.

The Great Depression was a Stock Market Crash that threatened the American economy. The Depression had many causes that began the Depression. Many Americans were faced with many losses, including losing their jobs, losing their money, and starvation. People lost their money because they didn’t take their savings out of banks when they crashed. Many starved because they did not have the money to be able to pay for food. Not only did this depression affect America, it affected other countries as well. The Great Depression was a worldwide economic depression that lasted from 1929 to 1939. (Kelly)