The Great Depression

1148 Words5 Pages
The Great Depression The major causes of the Great Depression in the United States all began with the expansion of the US economy as a result of World War I during the 1920s. A bubble formed in the United States Stock Market as a result of speculative trading due to the ease of buying and selling stock with new ticker tape technology as well as telephone lines that allowed for market transactions from all over the country. The Stock Market crashed on what is known as Black Tuesday, October 29, 1929, and the panic that ensued in the rush to withdraw money resulted in many millions of Americans losing their entire savings, and hundreds of banks closed as a result. (About the Great Depression, 2012) The Great Depression was not simply a problem in the United States, however, as many of the weaknesses of the depression occurred overseas, in Europe. The continent was ravaged during World War I, and many millions of young men perished in the war. The depression meant that Europe, which was already struggling after the destruction of World War I, was unable to stabilize itself, and many former powerful countries resorted to political change as a way to strengthen themselves. The major causes of the Great Depression in Europe have to do largely with the results of the conclusion of World War I. Great Britain, for example, spent much of its wealth during war efforts in World War I, and also in regaining control in its empire, specifically in the Irish Civil War and in the

More about The Great Depression

Open Document