The Great depression
Introduction:
The great depression of 1930 was one the most disastrous event in the economic history. It started from the United States and then spread to the other countries. It lasted for 10 years and brought immense problems for the people and the government of that time. The great depression of 1930 is studied as an example of how far a country’s economy can fall. The recovery of many countries, from the great depression started just before the World War 2. There are many reasons that caused the great depression few of them are discussed below.
Reasons:
1. Credit buying: Before the great depression started the American economy was in a very stable and consistent position. People were buying many consumer goods including
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Agricultural sector: The agricultural sector was already in a poor state before the great depression started. The farmers expanded their farms and improved their technology which increased their cost of production. However, there was not much demand for the agricultural products at that time. So there was overproduction of the goods which didn’t benefit the economy. So the poor condition of the agriculture sector also leads to the instability of the economy.
3. Crash of the Wall Street: A major reason of the great depression was the crash of the stock market. The stock market was making huge profits and people not only the rich class but the middle class also started investing their money in the stock market. People were taking loans from the bank and were investing them in the stock market. On Tuesday 29 October 1929 however, the value of shares fell and the market crashed. Most of the people lost their money and went into debts.
4. Failure of banks: The American banks at that time were small institution and they were relying on their own resources. When the stock market crashed many depositors went to the banks to take their money but the banks had fewer reserves to give to the depositors so they had to sell their asset. Moreover, the banks stopped giving more credits which ultimately led to low circulation of money in the economy. This damaged the economy
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Poor policies of government: After World War 1 Germany and other countries had to pay war reparations for which they had borrowed loan from the U.S.A. When the stock market crashed Herbert Hoover immediately called for the repayment of loans from other countries. Countries who were recovering from the war destruction found it difficult to repay the loans and this destroyed their economy as well. As a result, the great depression spread all over the world.
Consequences:
1. High Unemployment: The great depression caused high unemployment in the economy. The unemployment rate in America rose to 25% during great depression and in other countries the rate was up to 33%.
2. Increase in suicide rate: During depression and the market crash it is said that many people committed suicide as they lost everything they had. On the day of market crash it said that more than 10 brokers committed suicide.
3. People lost faith in government: After the market crash people didn’t trust the government. Many protest and strikes were carried out against the government.
4. Increase in crime rate: Due to high level of unemployment, the rate of crime increased. The people had to do something for survival and only option left to them was to indulge themselves in criminal activities.
5. Migration: During the period of depression, many people left their belongings and migrated to other places. Many farmers had to leave their farms and settled in other
Throughout the many years of the Great Depression, the American economy plummeted greatly because of ongoing issues throughout the United States. The American market, and essentially continuously buying, are what keeps an economy in any country moving. The points at issue which allowed the economy to go down consist of three major factors. All three of these aspects took a great amount of citizens down along with all of their profits. Families, businesses, and employees struggled to stay standing during this time period.
In October of 1929, the stock market crashed, leading to the depression. Wall Street was sent into a panic and millions of investors were wiped out. Investors began dumping shares in mass amounts. October 24, also known as “Black Thursday” was the day that 12.9 million shares were traded. Five days later, the day known as “Black Tuesday”, another 16 million shares were traded.
Hoover becomes president of the United States and enters office during one of the largest economic expansions in history. He promised in August, 1928 that he would lead near to triumph over poverty, fifteen months later, the nation plunged into the most severe and prolonged economic depression in the world. The main general cause of The Great Depression was the monetary and material distribution process broke down. Money stopped circulating causing wages to go down and unemployment, so not many people can afford to buy goods.
In history, the great depression was one of the worst things to happen, but what caused it? The main causes of the great depression were the stock market crash of Wall Street in which thousands of people lost their life savings and millions of dollars. After that was the drought in the west, which destroyed crops and oversupplied the wheat in the world. Finally, there was the decrease in exports which made Canada trade a lot less, and drop the economies of many countries.
Imagine it's October 28, 1929, living a lavish lifestyle, owning a mansion, sailing on a 100 foot yacht every weekend, and having what seems like unlimited money that can be spent on anything at anytime. Then, all of a sudden, October 29, 1929 comes. The stock market crashes, banks are closing everywhere, and personal possessions are being foreclosed upon. The greatest economic downfall in the history of the United States has just began. This would become known as the Great Depression, which suited the time period between 1929 and 1941 perfectly.
The Great Depression was a severe worldwide economic depression that took place during the 1930s. The article by Edwin Gay and pictures compiled by Cary Nelson are both descriptions of how the Great Depression was and the several impacts that it had on the American economy. The range of the great depression is unprecedentedly wide according to Edwin Gay. The great depression was believed to have started from the collapse of the US stock market in 1929. This was shown in a picture as compiled by Cary Nelson
The Great Depression was caused by speculation and installment buying, income maldistribution, and overproduction because each of these factors combined made the economy worse before and after the stock market crash, which led to The Great Depression. Speculation and installment buying helped caused The Great Depression because people were buying so much stuff on credit, when
The Great Depression was the worst economic downturn in the history of the world. It began in the United States when the stock market crashed in October 1929. Everybody was sent into a panic and millions of investors were wiped out. Unemployment levels began to rise after consumer spending and investment dropped, while stock prices continued to increase. Companies started to lay off their workers, and soon nearly thirteen to fifteen million people in America were without jobs.
The Great Depression The Great Depression was by far one of the worst times of America’s history, and the world’s history. The Depression affected everyone except for the politicians and the wealthy. During the depression a lot of people lost their jobs which caused the unemployment rate to sky rocket to 14% of America’s population was unemployed, and the number would stay their till World War 2, and the depression started in the 1920’s. Middle class workers were hit the hardest in the depression. Most of the middle class citizens lost their jobs.
During the Great Depression the unemployment rate went up, they were forced to eat at soup kitchens or go through garbage cans for food, and they even had to build shelter out of cardboard. The first underlying cause of the Great Depression was underconsumption and overproduction. Many things contributed to the underconsumption of goods. The production line kept producing goods even when people could not afford to buy them.
What Caused the Great Depression? The Great Depression was a devastating tragedy that changed our economy. In the U.S, the Great Depression shortly happened after the stock market crash in 1929. This sent Wall Street into a great panic and wiped out millions of investors.
There were a variety of causes that caused the Great Depression, but the main cause that started it was a decrease in spending. This led to production decrease because manufacturers and merchandisers did not want to have unused items just sitting on the shelves. In October of 1929 the stock market crashed. The United States stock prices had reached levels that could not be justified by sensible predictions of future earnings. The results of this were catastrophic.
Did you know the Great Depression was the deepest and longest economic downturn in the history of the western industrialized world?The lowest point for America where the economy was at a severe downfall. The Great Depression started on October 29,1929, ended in 1939.How America was able to overcome the Great Depression was because of World War II and big government military spending that finally broke the depression’s back (Doc.5). In these hard times for America it; was able to sustain itself over the downslide of falling stock prices and when the stock market crashed. The Great depression was one the most difficult time for Americans where there were people in severe poverty and often jobless. The causes of the Great Depression was speculation,
Nishat kazi (Muniya) 11th grade The Great Depression was one of the worst downturn of economy in the history that took place during the 1930s. It had a catastrophic effect in countries on both rich and poor. Though there are a lot of causes behind the Great Depression,the main three causes were-1.Bank failure 2.Stock market crash 3.laissez faire.
The Great Depression in 1929 was a great economic slump for Germany, which lasted for about 10 years. This made a great decrease in trading rates and a massive increase in unemployment and made the currency worthless. The following are reasons why the great depression started. To begin with, the lack of interest in the tariffs contribution and the miscommunication os the Lassez- faire lead to the great depression. During the world trade shifted after the World War I, President Wilson suggested that all those in the trade to lower the tariffs, this was extra taxes and duties on items.