The Great Depression And The New Deal

2393 Words May 26th, 2016 10 Pages
In the early 1920s, after the close of World War I a couple years earlier, Americans were seemingly prospering in their daily affairs. The nine-year span from 1920 to 1929 was filled with new and stirring changes; inventions, like automobiles powered by gas, innovative household appliances, like radios and vacuums, women’s suffrage, and more were taking off and changing the era. Companies were thriving in what was known as the Roaring Twenties. Stocks and production were greatly increasing too. This rise presented a shot for fortune, but also posed concern. More heavily in the fall of 1929, but even beginning in March, the economy began to plummet. There were secret issues surrounding the reflux of money for stocks and production, thus leading to job loss and detrimental international effects as well. The Great Depression, the worst economic drought in United States history, was caused by the crash of the stock market, unequal distribution of wealth, and institutional failures ("Causes of the Great Depression" Great Depression and the New Deal Reference Library). The downfall of the stock market, the New York Stock Exchange, ultimately led to the Great Depression because banks were making deals for loans for stocks with no attention to their true worth or price. The Federal Reserve tried to control all banks but the crash of the market was still predicted to come; however, some giants in finance believed the market was going to positively increase, but they were wrong. The…
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