The Contributions Of Black Tuesday And The Great Depression

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The Great Depression is considered one of the greatest economic downturns in history. It lasted from 1929 to 1939 and caused millions of Americans to be unemployed. This event was worldwide but originated in the United States of America. The industrialized world took a hard hit as construction was halted to a standstill and farming communities suffered foreclosures and price drops in their crops. Some historians like to contribute the Stock Market Crash, otherwise known as Black Tuesday, to be the sole contributor to the Great Depression. In all actuality, The Great Depression was born from many different factors that all played their own part in this economic upheaval. These factors can be broken down into five sections: The Stock Market Crash, Bank Failures, Loss of Consumers, the Smoot-Hawley tariff, and dangerous drought conditions. The Stock Market Crash was not the sole proprietor of the Great Depression, but it did accelerate the economic collapse by a huge margin. During the 1920s, The United States stock market started undergoing a rapid expansion and reached its peak in August 1929. As all this was going on, production had been declining and unemployment had risen by a large amount. This left the stocks in excess of their real value. On October 18 the fall of the market began. Black Thursday was the day where a record number of shares were traded. This led to many bankers and companies trying to buy a large amount of stocks in an attempt to stabilize the market.
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