The Causes Of The Great Depression

The Great Depression originated in the United States with the stock market crash on October 29, 1929. The depression was the biggest economic fall in American’s history. This crash stretched throughout the globe and affected the rich as well as the poor. There were many causes that assisted in bringing the depression into existence. However one of the main causes was the disproportionate riches during the nineteen-twenties. The gap between the rich and the working class people was the enlarged industrialize production during this period. Also in this period production cost fell quickly, wages rose slowly and prices remained steady.

The Great Depression remains to be the worst economic slump ever in American history and one which spread practically all over the industrialized world. The Depression bombarded in late 1929 and lasted nearly a decade. Many factors elemented the depth of the widespread prosperity. However, combined, the greatly unequal distribution of wealth throughout the 1920's and the extensive stock market speculation that took place during the latter part that same decade remain the key of all elements.

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.

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.

For more than a decade, from 1929 to 1940, America’s economy failed to operate at a level that allowed most Americans to attain economic success. A worldwide depression struck countries with market economies at the end of the 1920s. Although the Great Depression was relatively mild in some countries, it was severe in others, especially in the United States. The Great Depression left the American economy in ruins with problems that would take decades to fix. Government involvement increased in an effort to reconstruct our recession stricken economy.

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.

The Great Depression of 1929 in the United States was an economic disaster, seen as a dark reality of the time. Compared to World War I, spread to other parts of the globe. Roosevelt saw the great depression as an enemy of war that invaded the nation (Henretta 2012, 694). America was prospering aboard, but the domestic economy was collapsing which was said a sign of economy decay and showed itself in the mid-decade.

The depression was caused by a number of serious weaknesses in the economy. Although the 1920 seemed to be on the surface to be a prosperous time, income was unevenly distributed. The wealthy made a large amount of money, but more and more Americans spent more than they earned, and farmers faced low prices and heavy debt. The effects of World War I (1914-1918) caused economic problems in many countries, as Europe struggled to pay war debts and reparations. These problems build up to the crisis that began the Great Depression.

Imagine having no money or stocks, and prices were going up, and there were no open jobs. The Great depression was hard for everyone, they had to deal with market crashes, Herbert Hoover, starvation and other things. Rich or Poor you were affected by the Great depression.

In 1929, the United States Stock Market crashed. However, this “most disastrous day” that sparked the Great Depression did not occur out of the blue. There were many contributing factors to the Great Depression of the 1930s, the most influential being stock speculation and installment buying of goods, maldistribution of income, and the overproduction of goods. These three topics led up to the Bull Market Boom and the Great Depression.

After the stock market crash and the banks began to close the public started to lose faith in the nation’s economy. These events are partly responsible for the Great Depression. The public began to withdraw their money from banks causing even more damage. In an effort to improve the situation President Roosevelt and congress passed the Emergency Banking Relief Act and the Federal Deposit Insurance Corporation Act. “Confidence was further enhanced by the creation of the Federal Deposit Insurance Corporation (FDIC), under the Banking Act of 1933, passed in June, which guaranteed that government insured all bank deposits up to $5,000”(Barnes & Bowles, 2014). These acts restored the public’s confidence back into banks and encouraged the public

There were many causes of the Great Depression of the 1930’s. Some of the major reasons the Depression took place, listed from the most important to the least, are the cycle of lay-offs, the stock market crash, credit buying, natural disasters, and government policies.

There are many periods that I would like to learn about because all have a very interesting history behind them. The Great Depression however is the period in which I would like to live in because although it was not the greatest period in history we have learned from it. We all know that the Great Depression had many factors that caused the economy to be unstable.It is great that the companies where able to produce more in quantity of their goods but that was not as good when they did not raise the market as well. Having the experience to see how many families had to live through hardship in order to survive with many losing their homes must have been very hard for them.Therefore, it is something that I would have liked to be part of but

The Great Depression in the United States began as an ordinary recession in the summer

The Great depression occurred between 1929 and 1939 and was by far the longest lasting and deepest economic trough in the history of the Western world. It began in America right after the big October 1929 stock market crash, and ruined millions of investments, pretty much sending Wall Street into a tailspin. Over the next 10 years, people stopped spending money and investments came to a halt, causing industries to decline in output and unemployment to rise dramatically because failing companies had to lay off workers. The Great depression had reached a peak in the year 1933, and nearly fifteen million Americans were jobless and almost half of the banks located around the country had gone under. Although Franklin D. Roosevelt, the president