Causes Of Great Depression Essay

Essay on The Causes of the Great Depression
The Causes of The Great Depression History Imagine waking up one morning, only to find out
that all your investments and savings are gone. So if your bank that you invested all your money
in collapsed, you didn't get any money back. This is what happened to millions of Americans
during the 1930s. This era was called the great depression. The great depression was one of the
worst economy issues we have ever had in history. It was a hard time for everyone. The great
depression started in 1929 till 1939. Tons of banks closed down and about 9 million savings
accounts were lost. Tons of companies and factories went under. About 15 million people were
unemployed. There are many causes of the great depression. One main cause was the...show more
content...
It got so bad due to a misunderstanding of a slump by American policymakers. This became a
problem. In the 1920's the U.S. economy was booming. The value of stocks were rising and
being bought. People were buying tons of stocks. They put as little as ten percent in. Then
everything started tumbling down and people lost about ten times as much as they put in. Tons
of people saw the stocks falling, literally. People were trying to hurry and get rid of their stocks
they bought to try and save some of their money. When more and more people were getting rid of
their stocks it just made the situation worst. J.P. Morgan tried to save the economy by putting
billions of dollars in certain banks. This became the stock market crash. This day, October 24,
1929, became known as Black Tuesday. In the crash, people lost ten times as much as they put in.
After all that everyone lost there trust in the economy. Many people wanted to take their money
out of the bank. Banks were running out of money. Because of the cash shortage many banks got
closed down. Now all the companies are having troubles. With the economy falling companies
couldn't pay their loans off. Many companies had to combine together in order to cover their loans.
Companies stopped hiring people and began to lay off people. Because nobody could afford to hire
anyone the unemployment rate got extremely high. Prices also rose by companies to try and make
some profit off the
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What Are The Causes Of The Great Depression Essay
The great depression, one of the most haunting and horrifying times in united history. It Latest for
about 12 years, starting in 1929 and ending around 1940. The cause of this disaster event was
various faults within the economy. No one knew what was happening or what was going to happen.
Many people suffered without jobs, food, money, or even shelter. Now, there were many leaders in
the event and, there was lot's of leadership along with that. "What is it?" you might ask. Well, it was
. The great depression left a astonishing legacy. The first of the Great Depression was the stock
market crashes. It happened on October 24, 1929 on Thursday, which is know as "Black Thursday".
A series of events led to the crash. Investors and bankers had...show more content...
"Radio Priest" is what everyone called the host of the radio station. His actual name was Charles
Coughlin and soon became one of the first media starts. In 1939, World War II begun. The war
lasted from 1939 to 1945 and involved more than 100 million people from over thirty different
countries. This was the deadliest war in history, with over one million people dying. President
Roosevelt didn't was his country to go to war at all, but he had no choice because of Japan
bombed the U.S navel base at Pearl Harbor, Hawaii. So, America delated war on Japan and it
turned into something much worse. The war did not just do bad, it brought good to America. There
were lot's of new jobs, thousands actually, and people were back working without starving or being
homeless. By 1943 less than two percent of the country's workforce was unemployed which was
very good

What Caused The Great Depression Essay
Imagine a society where over 25% of the population was unemployed. That is what it reached during
The Great Depression ("The Great Depression"). During the depression unemployment rates were the
highest they have ever been. It is highly speculated to this day on what exactly caused The Great
Depression. Most historians agree it was a chain of events, one after another, that brought our
country into chaos. Some events were more impactful than others. These events caused
pandemonium among the public, which blew it even more out of proportion by trying to save
themselves from bankruptcy. The three major events that caused The Great Depression were the
Stock Market Crash of 1929, the bank crisis, and public overreaction. Although...show more content...
This event created a domino effect that helped lead to The Great Depression. The second major
event in this chain was the banking crisis. Before The Great Depression hit, our countries banking
system was characterized by having numerous small to medium sized firms, which meant they were
prone to going bankrupt. As I previously stated, banks had been extremely over–generous with
handing out loans. A good percent of these loans was invested into the stock market and lost when
it crashed. Some banks even invested depositors' money themselves into the stock market. The
investors were unable to pay back the money to the banks and banks started going under. Bank
policies during this time were very poor. They did not have guarantees to their customers that if
the bank failed, they would be reimbursed for the deposits like we have nowadays. This caused
depositors to rush and withdraw their money, and banks were forced out of business because they
didn't have all the money. By the inauguration of Franklin D. Roosevelt in 1933, the banking system
had practically ceased to function. Checks were unable to be trusted because nobody knew if they
were worthless or sound (Ganzel). All this pandemonium with the banking system caused the public
to panic and make it worse. The public contributed to starting The Great Depression in many ways.
They affected the stock market by being too quick to panic–sell their stocks. Since in this time
stocks only

Essay On The Causes Of The Great Depression
The Great Depression was characterized as the worst economic depression, and it was during the
time period of the 1930s. This depression was not caused particularly by one factor but a
combination of several worldwide and domestic conditions. The major causes of the Great
Depression consisted of the stock market crash of 1929, failures in banks, reduction in purchasing
products, and the economic policy between America and Europe. The stock market of 1929 was the
initial reason that drove us into the Great Depression as after the crash, stock holders started to lose
billions of dollars. Many banks started, and at this time, bank deposits were not insured and this
led to all the money saved in the bank by people being lost due to the failure of the banks. And,
the banks which actually survived stopped creating new loans in fear of failure and not enough
money. Due to the crash of the stock market and fright of economic problems, people began to stop
purchasing products, which led to the reduction in the workforce and a loss of a lot of jobs due to
money problems. The unemployment rate was constantly increasing as many people would decrease
the amount of items purchased drastically. Lastly, due to the failure of...show more content...
Social activity engagement with family and friends helped alleviate the melancholy caused by the
great depression. Families made food and gave to schools and other activities to make them run
smoothly, adults hung out together, children played, and entertainment helped people stop focusing
on their problems. The Great Depression transformed America by greatly expanding the role of the
government. Americans began to view the national government with a different perspective as the
federal government took initiative and helped people deal with the Great Depression with many
programs and

The Cause Of The Great Depression
In the summer of 1929 the American economy started a downward spiral into what would later be
known as the Great Depression. Consumers ceased to purchase unnecessary items and unsold
products began to stockpile in manufacturer's warehouses. 6This slowed manufacturing and
production. 5Although the companies did not have an increase in value, their stock prices continued
to rise. 3Finally, in October of that same year, the stock market crashed. Investors panicked and
suddenly flooded the market with their shares. Black Thursday and Black Tuesday, the two most
notable days of stock sales, are known for when approximately 29 million shares were sold.
Following that, consumers lost confidence and hesitated to spend their disposable cash which

Essay On The Causes Of The Great Depression
There are numerous causes for the Great Depression, but with intensive research we have narrowed
it down to a few specific origins. Some of the contributing factors to the Great Depression included
the stock market crash, banks failing, poor education about money, agricultural problems, and
President Hoover having a "do little" attitude. Almost overnight the United States went from a
bustling "Roaring Twenties" to a dreary depression. The Stock Crash of 1929 was the biggest event
to kick off the depression. The money not only disappeared overnight, but the people lost their
money and became poor. Many Americans wanted to "get rich quick" and put their money into
businesses or into money schemes. When the stock market crashed their money was gone. The
people lost all their money over night and had no money to put into the banks. Because of this,
both the banks and the people suffered greatly. Americans became broke and lost their jobs
because of no money circulating. The trust with banks became very low and "said" money was not
actually there for use. Not knowing how to use credit and the long term effects also took money
away from banks. Years prior...show more content...
Many lost money and therefore the trade of food went down also. Since no one had money to put
back into the economy, everyone became broke. For any economy to be successful, it at least needs
the people living in the country to spend some of their money to circle back into the country. Since
people weren't spending money during this time, businesses started closing. This resulted in an
unbelieveable amount of unemployment. In 1933 unemployment rose from 3.2 percent to 25
percent. Since no one had money to spend, trade of many other products also declined and stopped
bringing money to the U.S. Europe was one major trading partner that started to pull

Causes Of The Great Depression Essay
Causes of the Great Depression The greatest financial crisis to have occurred in history was not
caused by just one event, but rather by multiple events, though some contributed to the crisis more
than others. The first cause of the Great Depression was the maldistribution of wealth that occurred
among the population. The second most important cause of the Great Depression was the instability
of the structures of both the credit and debt markets. The last main cause of the Great Depression
was the shrinking demand for American produced goods from European nations. The most important
cause of the Great Depression is the maldistribution of wealth. The reason for choosing this, as the
most important cause because it is mentioned in the Brinkley...show more content...
The reason I chose this as my second cause of the Great Depression is because these markets
control both the flow of money and the rates that money can be borrowed at. The credit market
was in trouble according to Brinkley because large banks had been making bad loans and small
banks were having customers default on their loans. The debt structure at the time was also in
shambles according to Brinkley as American banks held large European debts that stemmed from
World War One, which also left the economies of the European nations involved in pieces. With
these nations' economies not being strong enough to off their debts the allied nations made
Austria and Germany pay reparations to them for the damage caused by the war. However this
plan failed because both the German and Austrian economies were also in trouble as well and
couldn't pay the reparations they owed. So once the plan failed Brinkley says "American banks
began making large loans to European governments with which they paid off their earlier loans."
(Brinkley). With large amounts of money being tied up in European debt and consumers defaulting
on their loans it isn't hard to see how the flow of cash decreased to low levels, causing the demand
for goods to drop not just in Europe but also around the

What Was The Causes Of The Great Depression
In conclusion, the origins of the Great Depression, which began in 1929, placed an impossible
strain, directly and indirectly, upon the world economy. The economical and financial structure,
which had developed during the 1920s, was delicate and many economies were moving into a
recession in 1929; therefore, when the U.S. boom broke, the general downfall was inevitable. The
weaknesses varied from country to country but problems were closely related; once the Depression
began, a domino effect set in and there was no international body or individual state that was able to
stop it. The Depression left a deep psychological scar on all nations; even those who were among the
most fortunate. The poverty, the insecurity and despair are still remembered

The Great Depression Cause And Effect Essay
It was October 29, 1929, also known as black Tuesday. The Great Depression had begun. We are
going to backtrack a little–bit to before the depression. The Depression was during the 30's, the main
idea here is the "causes", including: the roaring 20's, Black Tuesday, and bank failures. The roaring
20's was a time of electricity and new inventions such as the automobile. Everybody wanted all of
these new things although they did not have any money. The strategy they used–installments. They
asked the bank or others for some money and then bought the stuff they wanted. This brought the
middle–class living like the rich. Not only did the roaring 20's bring the Great Depression after, but it
failed banks all over America. The banks were now failing leading up to black tuesday. They were
loaning other people's' savings even if the payback was very unlikely. Also when folks noticed that
the market was crashing they were taking their life savings out, costing all the money to be gone in
a matter of weeks. Today–because of the "New Deal"–the bank insures you up to "this amount" if the
bank fails. Back then this wasn't the...show more content...
With over 16 million stocks sold on Wall Street, stocks were now almost worthless and money was
gone. Billions of dollars were lost, leaving many business owners out of money, or work. Not only
did this stock crash hit America, but the whole industrialized world. This was just the major turning
point of the long, harsh, downward spiral from 1929–1939 (the Great Depression). There are many
more causes such as the Federal Reverend, or President Hoover's actions. But the main reasons–I
feel–were these three topics, the roaring 20's, bank failures, and Black Tuesday. If President
Roosevelt had not taken the federal leed and put America in the first step, WW2 would not have
brought America out of the Depression. The New Deal and it's takes were a great lead out of the
Great

Causes of the Great Depression Essay
Causes of the Great Depression Throughout the 1920's, new industries and new methods of
production led to prosperity in America. America was able to use its great supply of raw materials
to produce steel, chemicals, glass, and machinery that became the foundation of an enormous boom
in consumer goods (Samuelson, 2). Many US citizens invested on the stock market, speculating to
make a quick profit. This great prosperity ended in October 1929. People began to fear that the
boom was going to end, the stock market crashed, the economy collapsed and the United States
entered a long depression. The Great Depression of the thirties remains the most important economic
event in American history. It caused enormous hardship for tens of...show more content...
On average, people's wages stayed the same even as prices for these goods soared. The factories
and farms still continued to produce at the same rate, but demand for their products was
decreasing. As a result, more and more workers became unemployed, until 25% of the population
was out of work. The American Federation of Labor fell from 5.1 million in 1920 to 3.4 million
in 1929 (Temin, 68). All of these groups, being poorer than the rest of the country, could not afford
to participate in the boom of the 1920's. There was a major unequal distribution of income that led
to the richest 1% of Americans owning approximately 40% of the country's wealth (Matthews, 2).
The country entered the 1920's with Warren G. Harding as president. Harding was a Republican as
well as a laissez–faire capitalist who advocated policies which reduced taxes and regulation,
allowed monopolies to form, and allowed the inequality of wealth and income to reach record
levels (Tanner, 3). Harding died in 1923 and Calvin Coolidge continued Harding's policies of
minimal government intervention in the economy and in business. Under Coolidge, the stock
market began its "artificial" five year rise, the top tax rate was lowered to 25%, and the Supreme
Court made an important ruling which further limited government control over monopolies (Tanner,
8). In the 1920's more people invested in the stock market than ever before.

Causes And Effects Of The Great Depression Essay
The Great Depression was one of the worst if, not the worst economic downfall in US history.It
started around 1920 and did not start to fade until the end of the 1930's.
The stock market crash of October 1929 is what provoked the Great Depression.On "Black Tuesday"
a panic set as millions of shares of stock traded at ever–decreasing prices.The October 1929 downfall
was only the start of the market collapse.The stock market crash was not the only cause of the Great
Depression it was also a weak banking system, industrial overproduction and further collapse in
already very low farm prices also contributed to the economic downfall.
As the effect of the Great Depression spread across the US economy, millions of citizens lost their
jobs.By 1933...show more content...
The Great Depression was already hard enough, however it was even worse for the racial
minorities,including African–Americans, American Indians, Asian Americans and Mexican
Americans.The general unemployment for the US was already high for being over 25 percent, but
the unemployment rate for American minorities was 50 percent or more.
During this time it was even harder for them because racial discrimination by this time was a thing
and once the Great Depression started it got even worse.When Americans were starting to lose their
jobs minority workers were the first ones to go.Even some charities refused to help them or give
them some kind of food.Violence also against them increased, as whites competed for jobs usually
held by minorities.
Not only America was suffering from this depression but even Africa, Asia, Europe, Australia and
South America were affected by it.The international trade fell 30 percent as nations tried to protect
their industries by raising the prices on imported merchandise.By 1932 there were 30 million people
who were without a job around the

Depression: The Causes Of The Great Depression
Indeed, the Great Depression was not caused by one particular reason, they are many reasons and
they started when the American States became a world creditor, in 1920's. After World war I, the
American State's economy was in a strong state. The country went through a decade called the
Roaring 20's. It was a time where the USA became a world creditor, they updated their modern
technology in order to improve their economy and the Americans appeared to be very wealthy
because they were buying on credit and playing the stock Market. The United State's economy
collapsed because of the reason listed below, Stock Market, Tariffs, Overproduction, Expenditure,
Reckless Speculation and minimal government intervention led to the fall of the American economy.
Herbert Hoover, the man who became The President of the United States by that specific time
claimed declared that ' We in America are nearer to the financial triumph over poverty than ever
before in the History of our land.' but nevertheless their economy still crashed like never before.
The roaring twenties meant a time of partying, smoking, drinking, dancing to Jazz and buying on
credit. Even though buying goods on credit made a lot more money, it was also very risky, because
there was money being owed, the lenders could not be paid and...show more content...
The stock market was filled with unregulated reckless speculations, which enabled many citizens
to have a shares in companies. By October 29 1929, 12.8 million shares were traded on the Black
Tuesday. 1929 marked the downfall of the market people owning shares started selling their share
on a low income and people who bought their shares with borrowed money were completely ruled
out. By that state, people started going to banks to claim their money but the majority of them did
not get their money because the Bank had no give to give. A huge amount of people lost their jobs
and the beginning of the Great

In the 1920s, American economy had a great time. The vast majority of Americans in 1929
foresaw a continuation of the dizzying economic growth that had taken place in most of the
decade. However, the prices of stock crested in early September of 1929. The price of stock fell
gradually during most of September and early October. On "Black Tuesday" 29 October 1929, the
stock market fell by forty points. After that, a historically great and long economic depression started
and lasted until the start of the Second World War. The three causes of theGreat Depression are
installment buying, uneven distribution of wealth and the irrational behavior in the stock market.
Installment buying serves as the first cause of the Great Depression. In...show more content...
When demand leveled off, factory owners had to cut back production and their workforce. Layoff
began in some industries like automobile industry as early as 1928, making ordinary citizens
unemployed. As unemployment increased quickly and vastly, a great depression seemed imminent.
Uneven distribution of wealth serves as another cause of the Great Depression. America was
wealthy in the 1920s, but this wealth did not extend to all segment of the society. The gains made
by wealthy Americans in the 1920s far outstripped gained made by the working class. By the time of
the stock market crash, the upper one percent of the population controlled over sixty percent of the
nation's savings. On the other hand, over three quarters of American families made less than $3000 a
year. Problems that could develop from this situation were obvious. The bottom–line three–quarters
of families were too poor to purchase much to help the economics to flourish. Underconsumption,
in the long run, was a vicious circle to the economy. People had no money to spend. The income of
many firms dwindled. More people were laid off or cut hours and thus further cut their spending.
The economics became stagnant. The irrational behavior in the stock market also precipitated the
depression. There were cases in the late 1920s of ordinary citizens becoming very wealthy by
purchasing stock. Some of these people were engaged in speculation, meaning

Causes Of The Great Depression Essay
Between the late 1890's, after the panic of 1893, and the late 1920's, the American people led
good lives in which most prospered. In the 1920's the problems that led to the Great Depression
were dispersed over a time of maldistribution of wealth, and what was called a bull market. A bull
market is a stock market that is based on speculation. Speculation was a system of borrowing
money to buy stocks and selling for a profit. Speculation only worked if the stock market was on the
rise though. To this day people who have not been properly educated about the GreatDepression
believe that President Hoover was the cause. The idea that President Herbert Hoover caused the
Depression could have arisen from the fact that he was the President at the...show more content...
The national income rose from $74.3 billion to $89 billion (Gusmorino, Main Causes of the Great
Depression). The whole American population did not live through the benefits of the "Coolidge
Prosperity." For example McElvaine, in his research on the Great Depression, stated, "in 1929 the
top 0.1% of the population had an income equivalent to the bottom 42% of the population,"
(McElvaine, Causes of Depression). That same top 0.1% of the population in 1929 had 34% of all
the savings, while 80% of the population had no savings at all. A good example of this
maldistribution of wealth can be seen with Henry Ford. In 1929, Ford reported an income of
fourteen million dollars, while the average income of the American people was seven hundred and
fifty dollars annually (McElvaine, Causes of Depression). If one were to calculate these numbers by
present daily standards, with the average income at eighteen thousand dollars, Henry Ford would be
making an astonishing three hundred and forty five million dollars. However, one should be
reminded that Ford was not the only man in America making this amount of money, there were
many people just like Ford around the Nation. Comparing the 1920's to today, one could say that
such businessmen are like the Internet CEO's today. With such a growing gap in the income of the
people, it was without surprise that such a catastrophic event could occur. The Federal

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 distribution of wealth in the 1920's was disparate and largely dispersed where funds
were randomly needed. Between the rich and the middle–class, between industry and agriculture
within the United States, and between the U.S. and Europe were...show more content...
A 1932 article in Current History articulates the problems of this maldistribution of wealth:
We still pray to be given each day our daily bread. Yet there is too much bread, too much wheat
and corn, meat and oil and almost every other commodity required by man for his subsistence and
material happiness. We are not able to purchase the abundance that modern methods of agriculture,
mining and manufacturing make available in such bountiful quantities. Three quarters of the U.S.
population would spend essentially all of their yearly incomes to purchase consumer goods such
as food, clothes, radios, and cars. These were the poor and middle class: families with incomes
around, or usually less than, $2,500 a year. The bottom three quarters of the population had a total
income of less than 45% of the combined national income; the top 25% of the population took in
more than 55% of the national income. While the wealthy too purchased consumer goods, a family
earning $100,000 could not be expected to eat 40 times more than a family that only earned $2,500 a
year, or buy 40 cars, 40 radios, or 40 houses.
Through such a period of imbalance, the U.S. relied mainly upon two things in order for the
economy to remain on an even keel: credit sales and luxury spending and investment from the rich.
One obvious solution to the problem of the vast majority of the

Causes of the Great Depression
The Great Depression also called Depression of 1929, or Slump of 1929, began in 1929 and lasted
until 1939. It was the longest and most severe depression ever experienced by the industrialized
world. Though the United States economy had gone into depression six months earlier, the Great
Depression may said to have begun with a catastrophic collapse of the stock market prices on the
New York Stock Exchange in October 1929 call the Stock Market Crash of 1929. During the next
three years stock prices in the United States continued to fall, until by late 1932 the had dropped 20
percent of their value in 1929 (http://www.britannica.com/bcom/eb/article/0
/0,5716,38610+1,00.html).
More than a half–century...show more content...
By the summer of 1929 businesses were being piled one on top of another (McElvaine 45).
The reason for this speculation of the twenties has long been debated. One culprit to blame is the
Federal Reserve Board's decision in early 1927 to lower the rediscount rate one–half point to 3.5
percent.
The decision was based on the need to save liquidity in the wake of Great Britain?s overvaluation of
the pound. This meant easier money at home which made stock speculation easier, yet did not cause
speculation (McElvaine 44).
Another factor that lead to the Great Depression was shortsighted government economical policies.
This meant that the government took no actions against unwise trading and investing. Congress also
passes high tariffs that protected American industries but hurt farmers and international trade (http:/
/www.bergen.org/AAST/Projests/depression/causes.html). Looking back many people believe that
these tariff increase were a horrible mistake that made the Worldwide Depression worse (McElvaine
32).
One of the bigger and most noted reason was the stock market crash of 1929 (http://www.bergen.org
/AAST/Projests/depression/causes.html). Prices had been drifting downward since September 3, but
generally people where optimistic. Speculators continued to flock to the market. Then, on Monday
October 21 prices started to fall quickly. The volume was so great that the ticker fell behind
(McElvaine 47). Investors became fearful. Knowing that prices were

The Cause of the Great Depression Essay
The Cause of the Great Depression The economic expansion of the 1920's, with its increased
production of goods and high profits, culminated in immense consumer speculation that collapsed
with disastrous results in 1929 causing America's Great Depression. There were a number or
contributing factors to the depression, with the largest and most important one being a general loss
of confidence in the American economy. The reason it escalated was a general misunderstanding of
recessions by American policymakers of the time.
The U.S. economy was booming in the 1920's. Stocks prices soared, as they were bought on margin
for as little as 10% down. Market speculation is cyclical–that is, if one stock appears profitable, you
buy it,...show more content...
Many people lost as much as ten times their initial investment, which shook consumer confidence. In
an effort to cover their margins, people rushed the banks in masses, demanding their money. Soon,
banks began to run out of cash and went bust.
With the economy falling in shambles and companies defaulting on loans, nearly all private and
corporate investment ceased. Companies couldn't afford to expand, and in fact, many had to
consolidate in order to cover the margins on their loans. This meant postponing hiring and laying
workers off, which caused unemployment to skyrocket. With people now willing to work for less
money, wages lessened too. At the same time prices rose in an attempt by companies to make some
amount of profit off the goods.
Because the governments' prevailing economic theory was based on laissez–faire economics, the
government believed that recessions were self–correcting. Eventually unemployment and inflation
stopped declining, but not before the U.S. lost 1/3 of it's output and 25% of the workforce was
unemployed.
In the end, it was World War II that brought us out of the Great Depression. With war at hand, the
government began pumping massive amounts of money into the economy. Production and inflation
increased. More jobs were available and wages rose. At the

Great Depression Causes And Effects Essay
The Great Depression originated in the US, lasting from 1929 to 1939. The most probable cause
for the depression was the Stock Market Crash of 1929, which wiped out millions of investers. Due
to millionaires pouring their own savings into stocks, the markets reached their peak. To add to this,
the wages were low, consumer debt increased, banks had so many loans that they couldn't get rid of
them, and factory production slowed, while stocks rose and rose. It came to the point where
investors began selling shares in groups and most became worthless. Consumers were now less
confident in businesses and banks. Suddenly, the markets crashed and 13 million people became
unemployed, many lost their savings account, homes, and organizations were made...show more
content...
This didn't last long as Germany's attacks at sea, causing hundreds of Americans to die, caused the
US to join the war. Although WWI was one of the most gruesome wars, there still came positive
outcomes. WWI began by the assasination of Archduke Franz Ferdinand fromAustria Hungary,
by Serbia. WWI changed the face of America forever. While men left for war, women took their
jobs, the first time they've left their domestic work and have worked in a factory ( a man's job ).
They also had the opportunity to go over seas and help the wounded . Due to needing vasts amount
of supplies for war, production and effiency in industries grew, technology advanced, and the
economy boomed. Industries began to receive an increase in profits, causing inflations to become
high, increasing the cost of living by nearly 15% more than average. The Great Migration of
300,000–500,000 of African Americans from the South of the US to the North , caused a massive
influx of people into cities, leading to squalid conditions, even more so, when the soldiers came back
from the war, it created even more intolerance towards immigrants and African

Many people speculate that the stock market crash of 1929 was the main cause of The Great
Depression. In fact, The Great Depression was caused by a series of factors, and the effects of the
depression were felt for many years after the stock market crash of 1929. By looking at the stock
market crash of 1929, bank failures, reduction of purchasing, American economic policy with
Europe, and drought conditions, it becomes apparent that The Great Depression was caused by more
than just the stock market crash. The effects were detrimental beyond the financial crisis
experienced during this time period. The first and most obvious known factor in the development of
The Great Depression is the stock market crash of 1929. The Money Alert website...show more
content...
The banking industry as a whole after the stock market crashed was going bankrupt due to not
being able to carry the "bad debt" that was created from using customer money to buy stock.
Because the banks were out of money, they were unable to cover customer withdrawals from their
bank, causing many bank customers to lose all of their savings. With the uncertainty of the future
of the banking industry, many people withdrew all of their savings, which caused more than 9,000
banks to close their doors and go out of business (Kelly). Due to the effects of the Great Depression,
and the collapse of the banking industry, the government created regulations to prevent similar
failure in the future. For Example, the SEC, (or Securities Exchange Commission), which regulates
the sell and trade of stocks, bonds and other investments was created as a result of The Great
Depression. The FDIC (or Federal Deposit Insurance Corporation), was created to insure bank
accounts so that that the consumer would be protected if the bank were to go out of business
(Kelly). The Great Depression's effect on the banking industry led to many useful changes to the
banking industry and helped restore confidence in banks in the American people. The next major
factor that contributed to the Great Depression was the reduction of goods being purchased during
the time period. After the stock market crashed, consumers from

What Are The Causes Of The Great Depression
The Great Depression was predicted due to more americans buying on margin for stocks in the
1920s and the failure of the banking system. The Stock Market crashed in October, 1929.
Essentially, the Great Depression occurred in October 29, 1929 but it had already started in other
parts of the world. It led to farming,construction, and industries see their production and prices go
down. This would lead to more unemployment and people losing money. The banks were closing
down, causing people to gain fear and become unpredictable because their savings were not
guaranteed and many had their life savings in the bank, hoping to use it for retirement. It seemed to
them that their world turned upside down and had to start all over from zero. The President

Causes Of Great Depression Essay

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Causes Of Great Depression Essay