Great Depression Causes

Prior to the Great Depression, America’s economy was prospering. After World War I, the United States’ economy expanded due to factors that include more railroads being developed, automobiles being developed and more international trade happening. The stock market was on the rise greatly improving the wealth of Americans all over. A lot of Americans had put their money into to the stock market as a way to gain money. Much of the money that Americans invested were borrowed money. Because a lot of the money that Americans invested was borrowed money and banks were putting their money in stocks, when the stock market crashed on October 29th, 1929, millions of Americans lost their money. These were some of the factors that led to the time period known as the Great Depression. In response to the Great Depression, Franklin D. Roosevelt created a series of programs and

“We now know, as a few knew then, that the depression was not produced by a failure of private enterprise, but rather by a failure of government in an area in which the government had from the first been assigned responsibility.” Milton and rose Many if not most people in the United States of America believe that our Great Depression was directly caused by the stock market crash in October 1929. Not unlike a lot of teachings the truth or complexities of major events can be watered down. But what caused the stock market to crash? Why did the Great Depression worsen?

The majority of individuals trust that the stock exchange crash that happened on October 29, 1929 is the main source of the Great Depression. The stock market accident was not the sole reason for the Great Depression, but rather it acted to quicken the worldwide economic breakdown of which it was additionally a symptom. Numerous components prompted the Depression. One of which being bank failures, another the global downturn, and dry season conditions.

Historians argue what caused the Great Depression, some say it was due to the stock market, others say it may be the war debt or overproduction. To believe the Great Depression was caused by only one event is naive. It was caused by a multitude of problems that the government failed to fix.

The Great Depression was a time of great economic tragedy during the 1930’s. October 24, 1929 was the day of the stock market crash, causing economical shortage everywhere, even globally, and this scared everyone, including the rich. This day was/ is known as “Black Thursday”, where over 2.9 million shares were traded. On “Black Tuesday”, five days later, more than 16 million more shares were traded in another wave of panic. Many investors then lost confidence in their banks and demanded deposits in cash which forced the banks to liquidate loans in order to supplement their on hand cash reserves. By 1933, around 15 million Americans were unemployed and nearly half of the country’s banks had failed. This stopped Americans from purchasing which then led to less production of goods and decreased the amount of needed human labor. In the end, millions of shares ended up worthless, and those investors who had bought stocks with borrowed money were wiped out completely.

The Great Depression was caused by many factors built up over time. The stock market crash, driven by greedy investors hoping for profit, was a vital cause of the Great Depression. In a 1952 article, Harry Carman and Harold Syrett claimed that the speculative boom between 1927 and 1929 was the leading cause of the Great Depression (Document C). They expanded on the idea that investors bid on stocks to the point that they became invaluable, forcing stock prices up.

In the 1920s there was a trend of consumption by the American people, many citizens bought stocks and luxury items on credit rather than cash. This took a terrible turn in 1929 when the stock market crashed on October 29th. This was one of the major events that led to The Great Depression. The Great Depression was also caused by speculation and installment buying, income maldistribution, and overproduction. Each of these topics created serious problems for the economy that ended with debt, unemployment, and poverty.

The first main cause of the Great Depression was The Stock Market Crash of 1929. On October 29, 1929 the New York Stock Exchange experienced a huge downfall that was detrimental to the US economy. For example, in Document 3 the title of the newspaper article is, “Stock prices Slump $14,000,000,000 In Nationwide Stampede To Unload Bankers To Support The Market Today.” These losses that occurred because of this crash were probably the most devastating ever experienced in the stock market. Because of

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The causes of the Great Depression in the early 20th century is a matter of active debate between economists. Although the popular belief is that the main cause was the crashing Stock Market in 1929 caused the Great Depression, There were other major economic events that contributed just as much as the crash, such as American’s overextension of credit, an unequal distribution of wealth, over production of goods, and a severe drop in business revenue. As these events transpired the state of economic crisis in the US began to skyrocket.

There were several factors that played a major role in the Great Depression. The main explanation was overproduction of both farm and factory and the unequal distribution of wealth throughout the 1920s. The excessive speculation in the 1920s kept the stock market at a deceitful high, and came crashing down in 1929. Over extended credit at

America’s Great Depression is believed as having begun in 1929 with the Stock Market crash, and ending in 1941 with America’s entry into World War II. In order to fully comprehend the repercussions and devastating effects of the Crash of 1929, it is important to examine the factors that contributed to the catastrophic event which led to The Great Depression. The Great Depression was the worst economic slump in U.S. history, and it spread to most of the industrialized world. Many factors played a role in bringing about the depression; however, the main cause for the Great Depression was the combination of the greatly unequal distribution of wealth throughout the 1920s, and the

Many people speculate that the stock market crash of 1929 was the main cause of The Great Depression. In fact, The Great Depression was caused by a series of factors, and the effects of the depression were felt for many years after the stock market crash of 1929. By looking at the stock market crash of 1929, bank failures, reduction of purchasing, American economic policy with Europe, and drought conditions, it becomes apparent that The Great Depression was caused by more than just the stock market crash. The effects were detrimental beyond the financial crisis experienced during this time period.

In the 1920s, American economy had a great time. The vast majority of Americans in 1929 foresaw a continuation of the dizzying economic growth that had taken place in most of the decade. However, the prices of stock crested in early September of 1929. The price of stock fell gradually during most of September and early October. On “Black Tuesday” 29 October 1929, the stock market fell by forty points. After that, a historically great and long economic depression started and lasted until the start of the Second World War. The three causes of the Great Depression are installment buying, uneven distribution of wealth and the irrational behavior in the stock market.

Many people think that the Great Depression was caused solely by the stock market crash. Anybody who tells you this probably didn’t pass U.S. History in high school. The fact is, the Great Depression was caused many different factors. Four of which were overproduction, uneven distribution of wealth, protective tariffs, and the four “sick industries” of the 1920’s.