What Caused The Great Depression

The Great Depression lasted from 1929 to mid 1940s. It was a time of misery and suffering for everyone around the world. The stock market crash caused millions of people to end up without a job and hungry. Up to 7 million people worldwide lost their lives. This devastation made many families start over and begin again.

In 1929, the United States economy appears to be good and strong, at the moment; all Americans have some extra money or credit to buy some extra goods. The good economy was reflected in the Stock market, profits were big, more and more people invested in Stocks. In addition, farmers produced more wheat, cotton, corn, etc. and industries produced more goods that the needed to supply the country (over production), farmers’ and industries owners’ ambition make them produce more and more crops and goods. Americans using credit to buy goods they can’t pay, everyone investing all its savings on the stock market, overproduction on farm and industry area, plus America's new way of think, and other economic factors, make the economy of the country less strong, produce more unemployment and as result pushing the country into the Great Depression.

The Great Depression was a dark time in American history that lasted from1929-1939. It began after the Stock Market crashed on October 19, 1929. According to A Biography of America: FDR- The Great Depression, “It was the deepest and longest lasting economic downturn in American History” (A Biography of America). As a result of the Great Depression one out of every four Americans was out of work. The Great Depression resulted in a life for Americans that was plagued by overproduction and under-consumption of products, starving families were forced into bread and soup lines, and thousands of agricultural workers became migratory workers in order to survive.

The Great Depression started in 1929 and lasted up until 1939. It happens to be the worst economic downturn for the United States and the the rest of the world. It caused companies and corporations to eventually go bankrupt as well as workers to be laid off. Another effect of The Great Depression is that factory production was reduced, and the banks started to shut down. In the lowest point of The Great Depression in 1933 nearly 15 million workers in America were unemployed and one half of the banks started shutting down.

The Great Depression was a devastating time for many Americans. From 1929 to 1932, the US experienced an economic downturn that was calamitous to the lives of many people. Millions upon millions of Americans lost everything when the stock market crashed on October 29, 1929. After exiting an era that left people living a life of luxury, the stock market crash came as a surprise. As a result of the stock market crash, many became unemployed and many families were being forced to close their businesses. Although there were many factors that contributed to the cause of the Great Depression, the three main causes were The Stock Market Crash of 1929, high unemployment, a decrease in consumer purchases due to being “stuffed with stuff” during the roaring twenties.

Many americans were affected by the crash because they depended on the stock market. The banks suddenly started to fail also, after the stock market crashed. Some banks started to shut down. The industrial production dropped by half. The farmers could not sell any crops because the prices had to increase. In 1930, the first banking panics began. President Hoover wanted support the falling industry and banks. He tried hard to make loans and help the country. The crash of the stock market was only the beginning of the great depression. Banks were forced to closed, causing clients to lose money and income, making them have a hard time. They had to figure out how to keep up with their incomes and wages. How to help out their family. They lost their jobs and that made it difficult for them to pay their needs. While the jobs became more scarce, unemployment was abundant. The great depression also cause other types of people to become unemployed.

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.

The Great Depression started in 1929- 1939, it was the deepest and longest - lasting economic downturn when a stock market crashed. Many people have lost their jobs and they couldn’t afford bills. Birth rates dropped because people could not afford to care for children, and divorce rates dropped because people could not afford legal fees. The Great Depression caused many effects on the American people.

Money markets slammed on October 1929 and this is what caused the Great Depression to happen. For a length of time the country was at the point where signs of troublesome were shown such as joblessness; which turned out to be a gigantic issue for the Americans as well as for different nations. “By 1933, unemployment was at twenty-five percent” (FDR). Never had the highs been higher and lows been lower for the economy. With cash going away individuals started to live in hardships with no real way to earn money. Hoover being president at the time, had great hopes for the economy of America, once this catastrophe hit he was not necessarily blamed for the troubles happening. The nation reacted to The Great Depression in many ways. People were let down by President Hoover which effected the economy, children began to impact society, and families fell apart. Some people turned to music, while others turned to violence.

Roosevelt) became elected into presidency, he announced a four-day “bank holiday” where all banks closed so that Congress could pass the New Deal, made up of several policies that addressed the problems of the Great Depression. For example, Tennessee Valley Authority (TVA). “They built dams and hydroelectric projects to control flooding and provide electric power to the impoverished Tennessee Valley region of the South” Another example would be the Works Project Administration (WPA), “a program that employed 8.5 million people from 1935 to 1943”. Another policy that is still around and widely used today is the Social Security Act. “This provided Americans with unemployment, disability and pensions for old age, for the first time.” This was a great step because when the Great Depression first began, “the United States was the only industrialized country without any form of unemployment insurance or social

The Great Depression, which lasted from 1929 to 1939, was the worst economic depression in the history of the United States. The stock market crash of 1929 signaled the start of the downturn and the coming of the Great Depression. This speculation and stock market crash acted as a trigger point for the already unstable U.S. economy. Thousands of people went bankrupt because they had lost their working capital in the stock market crash. Thus, the rich stopped spending on luxury items; the middle class stopped buying things on credit.

The Great Depression lasted from 1929 to 1940 and had a deep and lasting impact on the lives of those who lived through it. Even after prosperity returned, those who lived trough the crisis never forgot the worries and struggles. To this day historian and economists disagree on the exact causes of Great Depression. However agricultural problems, the collapse of the bank, easy credit, businesses closing down and unemployment rising all played a big role during the Great

The Great Depression was a time when the economy in the U.S. plummeted. It occurred between the late 1920s and early 1940s. Many became homeless, jobless and hungry. Therefore, it leads many to wonder how it happened. A number of factors that led to the The Great Depression, the worst economic crisis in the United States, include the collapse of banking systems, reduction in foreign and domestic purchasing, and a major drought known as the Dust Bowl.

After World War I, countries across the world went into a hardship. Great famine and inflation took place. Money was hardly worth anything. Prices went up, but the value of money went down. People were losing jobs faster than ever before and the number of homeless people increased dramatically. The world was now going into one of the hardest times that it has ever seen. This was The Great Depression . The Great Depression basically caused a lot of difficult consequences in the world, (money, business, and jobs). The Great Depression was one of the biggest hardships ever. It ain't called The Great Depression for nothing.