Causes And Effects Of The Great Depression Essay

Causes And Effects Of The Great Depression Essay
Stock Market Crash of 1929
The Great Crash, also known as the Stock Market Crash of 1929 was the worst economical crash in
U.S. history. The 1920s is the most interesting topic about the United States past that go from life
during the beginning of the 1920s which was the prime days for american people. To going inside the
stock market crash of 1929, which almost destroyed the country and its people. Then learning about
the interesting facts of the causes and effects that the crash brought not only the U.S. but the whole
world is mind blowing. Life after the crash of the stock market would ultimately lead to the fall of
the country and the great depression. The stock market crash of 1929 was the worst economic
downfall in the history of the...show more content...
The U.S. went straight into the World War 2 after it was attacked at Pearl Harbor by the Japanese
in 1941. Japan attacked Pearl Harbor with airplanes and bombings to destroy most of the
countries battleships. In the article Great Depression: Causes and Effects it says, "The Japanese
attack on Pearl Harbor in December 1941 led to America's entry into World War II, and the
nation's factories went back in full production mode." Going into the war because of the attack
brought America's dead factories and industries back to life. Thousands of jobs were being
created and all of the nations men were going out to war to protect their country. Women and men
were going to work in factories, mass producing weapons and ammo for the war. These jobs gave
people back their lives and they finally started to make a monthly income. This made it so people
could finally get off of the streets and back into homes with food on the table and clothes on their
backs. The article, Great Depression: Causes and Effects says, "The Great Depression had ended at
last, and the United States turned its attention to the global conflict of World War II." In the end it
pulled the country out of the great depression, the stock market was climbing, and we won World War
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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

The Causes And Effects Of The Great Depression
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. Businesses were greatly affected by The Great Depression. As
banks started shutting down the whole American economy started experiencing deflation. Deflation
is when money starts to have less value. Because of this, businesses began to cut costs meaning
they would need to lay off workers. The workers being laid off can't buy anything so companies
can't sell anything. This results in the company eventually having too much inventory which they
cannot sell. The companies would then have to resort to reducing their prices to sell all their
stockpiled products. This causes profits to drop, making companies lay off more workers, repeating
the cycle again and eventually lead to the company going bankrupt. All the unemployment caused
many to live in poverty. This poverty caused many to make makeshift houses. Some even made
neighborhood. One of the worst cases of these were known as Hoovervilles. One of the most
famous images of one of these hoovervilles was

Essay about Effects Of The Great Depression
Effects of the Great Depression The introduction of the discussion will focus on the origins of the
Great Depression and the escalating events that led to it. This will provide adequate foundations to
bring up questions and attempt to answer them in an objective fashion as to why and how the
Depression affected different industrialized countries in different ways.
The core of the debate will consist of detailed comparable analyses of the consequences of the
Depression with an emphasis on the economic aspects. The conclusion will provide a brief
overview of the ways used by the different governments to get out of that dark episode of world
economic history.
When studying the Great Depression and...show more content...
Clearly, the U.S. was going from being a traditional debtor of
Europe before World War I to becoming its creditor: America had financed the war and it was
issuing loans for its reconstruction.
However, the attitudes in the U.S. were evolving in an unusual direction: an increasing number of
American financiers were starting to literally seek ut potential borrowers which led to competition
among U.S. banks and the spreading of unsound lending.2 The main object was to "do the most
business", even at the expense of essential caution. What seemed like a beginning of recovery from
the Great War, was in fact an immense accumulation of debts, which made the international
economic order vulnerable to depression. Analyzing these events with the insight we have today,
they seem even more unbelievably audacious given the high instability of the borrowing nation. (i.e.,
Europe)
The triggering event was the crash of the Wall Street stock market in October of 1929. The stock
market collapsed after steady declines in production, prices and incomes over three previous months
which forced the speculators to revise their expectations. Anxiety soon gave place to panic which led
to the crash. However, the depression affected the different industrialized countries in various ways
and degrees of intensity.
The depression was of especially great magnitude in the U.S. because there were not any welfare

America has been shaped by its perils and triumphs throughout history. As is remembered by many,
the United States faced the largest economic drop in our history during the Great Depression in 1929
through 1939. To add on to the already shaky situation, a devastating natural phenomenon hit
150,000 square miles worth of Oklahoma, Texas, Kansas, Colorado, and New Mexico, the Dust Bowl
. It all started when hopeful farmers and ranchers moved to this once fertile area in mass. These
people overworked the soil, and didn't have proper farming techniques, leading to disaster. An area
that used to be covered in semi–arid grasslands and fertile soil, was then ruined by drought; between
1930 and 1934, rainfall dropped by 27.5% in the dust bowl area. Because...show more content...
Farmers' and ranchers' livelihoods and income rely on their crops, cattle, and other animals. As
was stated earlier, essentially all the crops died with the Dust Bowl due to dryness, heat, and pests
(jackrabbits, grasshoppers, etc.). Without crops, farmers didn't have much income, and often had to
sell their livestock. Livestock such as cows also died due to extreme dust inhalation, further
reducing potential profits. The massive dust storms forced migrant farmers to lose their business,
their livelihood, and their homes. Families migrated to California or cities to find work that often
didn't exist by the time they got there. Many ended up homeless or in "Hoovervilles," named after
President Herbert Hoover. By 1940, as many as 2.5 million people had left the Great Plains, 200,000
of them moving to California in hopes of better jobs and a better life. Many Dust Bowl residents
packed what little they had and left without finishing whatever business they had left in their towns.
Because of this, many banks and businesses were forced to shut down. Franklin D. Roosevelt and
other political officials assisted struggling farmers through a series of government programs. Under
the New Deal, Roosevelt passed the Soil Conservation and Domestic Allotment Act and the Federal
Surplus Relief Corporation. He also helped establish the Drought Relief Service, Civilian
Conservation Corps, and education on proper

Cause and Effects of the Great Depression
The Causes and Effects of The Great Depression In America Few Americans in the first months of
1929 saw any reason to question the strength and stability of the nation's economy. Most agreed
with their new president that the booming prosperity of the years just past would not only continue
but increase, and that dramatic social progress would follow in its wake. "We in America today,"
Herbert Hoover had proclaimed in August 1928, "are nearer to the final triumph over poverty than
ever before in the history of any land. The poorhouse is vanishing from among us."1 In
mid–October, 1929, the average middle–class American saw ahead of him an illimitable vista of
prosperity. The newly inaugurated president, Herbert Hoover, had...show more content...
M. Barker, "cupidity turned into unreasoning, emotional, universal fear".9 The misery of the Great
Depression was, then, without precedent in the nation's history.10 The most searing legacy of the
depression was unemployment, which mounted steadily from the relatively low levels experienced
between 1922 and 1929. The percentage of the civilian labor force without work rose from 3.2 in
1929 to 8.7 in 1930, and reached a peak of 24.9 in 1933. The estimates of unemployment amongst
non–farm employees, which include the self–employed and unpaid family workers are even higher.
These are horrifying figures: millions of American families were left without a bread–winner and
faced the very real possibility of destitution.11 Within a few months after the stock market collapse
of October 1929, unemployment had catapulted from its status of a vague worry into the position
of one of the country's foremost preoccupations. Unemployment increased steadily, with only a
few temporary setbacks, from the fall of 1929 to the spring of 1933. Even a cursory reference to
the several existing estimates of unemployment will amply show the rapidity with which
unemployment established itself as an economic factor of the first order of importance.12 By 1932,
a quarter of the civilian labor force was unemployed and the number was still rising. State and local
relief agencies lacked sufficient funds to meet the demands of families for bare sustenance.
Discouraged by continual

The Causes and Effects of Depression Essay
The Causes and Effects of Depression Depression has numerous causes and effects which affect
not only the person but the people around them. Depression doesn't have a specific cause; in most
cases it's different for everyone. It is a common, treatable mental illness that can be experienced at
any time in life. It is often described with feeling sad, unhappy, miserable, or "down in the dumps".
Most people have these feelings on occasion. There are several types of depression. These different
types of depression describe slight, but often important, diagnostic differences. True clinical
depression interferes with mood disorder in everyday life for weeks, months, or even years. Most
people think depression affects only one...show more content...
Family and friends become worried about this person. They don't understand why this person
may be depressed or know how to help. So in turn both the person and their loved ones feel
helpless. People that have strong social support and loved ones to lean on tend to recover faster
than people that isolate themselves or have no one. Depression is a serious mental illness that can
be treated. Knowing the type of depression is important. A person may find the treatment that best
suits them with the trial and error process. The severity of the depression means a more intensive
treatment. Most people choose to take antidepressants rather than actually getting help with their
problem. They shouldn't rely on the medication alone; if they do it can bring unwanted side
effects. All of the depression treatments take time, and sometimes it might feel overwhelming or
frustratingly slow. That is normal. Recovery usually has its ups and downs. Depression has
numerous causes and effects. The exact cause of depression is unknown. Depression can be
genetic, triggered by stressful events, or both. A person with depression will avoid friends and
social gatherings and begin to isolate themselves. They might even start to get into trouble or do
bad things. Depression can lead to many addictions such as alcohol or drug abuse. If it leads to
something like that, then the severity of the depression can become worse. The loved

The Great Depression is a defining moment in time for not only American, but world history. This
was a time that caused political, economical, and social unrest. Not only did the Great Depression
cause a world wide panic, it also caused a world wide crisis unlike any before it. This paper will
analyze both the causes and the effects of the Great Depression in the United States of America. One
cause of the depression is the effects of World War One. World War one had many devastating
effects on countries all across the globe. In the United States millions of lives were lost to the war,
as well as huge amounts of money that had been used to fund the war. All across the globe vast
destruction of property was found. This in turn caused a...show more content...
The quote, "Economists still agree that Smoot–Hawley and the ensuing tariff wars were highly
counterproductive and contributed to the depth and length of the global Depression" (http:/
/www.federalreserve.gov/newsevents/speech/bernanke20130325a.htm) shows that the Americans
original plan of protecting their own businesses only hindered them. Another cause of the
depression was the lack of prosperity for many groups, and the lack of spending that soon resulted
from this. In the early 1920s we know that the United States had a high prosperity. What is less
known is that not everyone was sharing the good times. Immigrants from most countries,
including those in Africa and Mexico, were sharing the same poor treatment as the Aboriginals in
the United States. These groups were not doing well socially or economically and had low paying
jobs. Many Americans simply could not afford to pay for many goods, and this created a massive
reduction in purchasing. Factory workers suffered greatly from the reduction in purchasing; many
factories had no need to keep the high levels of production going, and were forced to fire many
employees. More workers still lost their jobs to machinery that could be used to the employers
advantage to reduce the spending on wages. People now found themselves unemployed and unable
to pay for their items previously purchased through

The Impact of the Great Depression Essay
The Impact of the Great Depression
The stock market crash of 1929 sent the nation spiraling into a state of economic paralysis that
became known as the Great Depression. As industries shrank and businesses collapsed or cut back,
up to 25% of Americans were left unemployed. At the same time, the financial crisis destroyed the
life savings of countless Americans (Modern American Poetry). Food, housing and other
consumable goods were in short supply for most people (Zinn 282). This widespread state of
poverty had serious social repercussions for the country.
America's agricultural economy had already been suffering for a decade when nature conspired
against the country to exacerbate the Great Depression. From 1931 through 1939,...show more
content...
Everyone scrounged about for small, labor intensive jobs at low wages. Even women and children
had to work to subsidize the family income. The recently homeless lived in shantytowns
nicknamed "Hoovervilles" after President Hoover who was moving slowly and ineffectually to
deal with the Depression (Wikipedia). Little food was available and many had to search garbage
heaps and other such locations for any kind of sustenance. The economic crisis had ushered in a
decade of unprecedented mass poverty and poor living conditions.
Herbert Hoover, the president in office when the Great Depression hit the country, did very little to
ameliorate the devastating situation. Hoover underestimated the seriousness of the crisis,
misdiagnosed the causes of the problems, and clung to his beliefs in individual achievement and
self–help. His corrective measures, aimed at inflation and the federal budget, were thus damaging
themselves. Furthermore, he hesitated to mobilize government resources to aid Americans and
instead appealed to private groups to lend a hand (Encarta). Thus Hoover's administration did little to
mitigate the impact of the Depression.
With no relief in sight from the government or anyone else, people's anger and resentment grew. The
Communist party and other socialist groups saw a swell in their numbers. Labor strikes and protests
against the government began to erupt. The most notable of these was the Bonus Army March on
Washington. More than

Great Depression Cause And Effect Essay
The major cause for the Great Depression was the fact that Americans began to buy goods on credit
and that some bought stocks on margin. During the Roaring Twenties, various new products, such as
vacuum cleaners, electric irons, fans, cars, radios, and others, began to be manufactured and
introduced into the market. By 1923, there were over 500 radio stations that existed in the United
States and there were over twelve million radios that were in American homes. Since these new
products were expensive, a large portion of Americans bought them on installment plans or lines of
credit. After years of overspending, these debts were unable to be paid back. This led to a crisis,
since the banks that issued the loans took the money from the savings accounts of customers at the
bank. Thus, their money was lost. When patrons of the bank were unable to recover their money, it
caused a panic. This led to a rift between individuals...show more content...
This means that people took out loans to invest in the stock market and when those stocks did not
perform, they were unable to pay back the debts. A major factor in this type of underperformance
was the way that the stock market was overvalued. Between 1925 and 1929, the value of the New
York Stock Exchange rose from 27 billion dollars to 87 billion dollars. After it was apparent that the
prices were heavily over inflated, it caused the value of the market to drop. Moreover, the interest on
the loans for margin investing were high, in some cases as high as 20% which also made them
difficult to pay back. As mentioned before with installment plans, the banks took money out of the
savings accounts of those who put money in the bank to issue the loans for these investments and
they were unable to come up with the funds from the savings accounts. This also contributed to the
rift between the banks and those who put money into the

The Effect Of The Great Depression Essay
There is much debate as to what caused the Great Depression. There was certainly the short–term
trigger of the Stock Market Crash of 1929, but there are also long–term causes that manifested itself
during the 1920's. Whether it is the shift from coal to electricity that negatively affected those
invested with the old technology, or a shift more to trucks and cars to transport goods instead of
railroads, or perhaps that farmers were losing their farms because over over–investment during the
late 1910's, many factors can be identified as a cause. But we can also look at the consumer as one
of the root causes, as well. Consumer behavior contributed heavily to causing both the stock market
crash and the Great Depression.
Consumerism and its accompanying advertising exacerbated the conditions that led to the Great
Depression. First, consumers spent a lot of their income on new products and they were persuaded to
do so through advertising. The 1920's brought about changes in American culture, like music, sports
and literature. But in addition to those, cultural attitudes toward women also began to shift. The
double standard that had plagued women was now being lifted and that opened up an entirely new
market for businesses (Payne, 33). The advertising industry expanded their targets and utilized what
they learned during World War I (from Creel's Committee for Public Information) in how to not only
let customers know what products exist, but to entice and persuade

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

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

Cause And Effects Of The Great Depression
The Great Depression was an economic downfall throughout America during the 1930's. It was know
as the longest–lasting economic downturn in history on the western industrialized at that time. This
downturn went into effect after the Stock Market Crash of October 1929. This sent Wall Street into
a great panic and essentially wiped out millions of investors. Over the years, consumer spending
dropped causing a decline in the industrial output. By 1933, the Great Depression reached its lowest
point and the banks had failed. The Stock Market Crash signaled the beginning of the Great
Depression, in result the bank failures followed. Before the Great Depression, there was an era
throughout America during the 1920's called the Golden era. The 1920's...show more content...
When individuals in America read the daily newspaper or looked at the police cartoons around
town they were all centered around the Stock Market Crash. One in particular shows New York
buildings falling over civilians and a plethora of chaos happening. When citizens saw these cartoons
it informed many that everyone was eventually going to get hit by the Great Depression one way or
another. Many newspapers such as the New York Times, updated citizens with information about the
stocks frequently. According to the archive.nytimes.com, "but those who are staking their all on the
country's leading securities are placing a great deal of confidence, too, in the expectation that there
will be an overnight change in sentiment; that the counsel of cool heads will prevail and that the
mob psychology which has been so largely responsible for the market's debacle will be broken". The
newspapers, as well as the political newspapers, alluded to citizens that this unfortunate event was
not going to get better in a couple months

Cause And Effect Essay: The Great Depression
The great depression was the longest economic failure and cost many their jobs. Is started in 1929
and had lasted till 1939. The great depression depressed almost the all of the united states and sent
many people to commit suicide for they had lost everything. The great depression started after the
stock market crashed this uproars caused many envestors to lose their jobs and their life's work.
Thi was a huge panic two all of wall st.
The great depression caused just awful things to happen with the crime rate's going up. People had
no way to generate more money so they resulted to robbery and theft. Prostitution was at a high
becuase girl figured they could make money this way and keep up with their dues. Alcohol abuse
was at

Effects Of The Great Depression
Del pozo 1
Zackery Del Pozo
Mrs.Kent
English 8
3/12/2015
The Effects of the Great Depression
The Great Depression, the worst economic recession in US history. In October 1929 the
U.S. stock market crashed. This event is commonly referred to as the beginning of the
Depression. The stock market crashed in New York causing the rest of America to fall. It was not
just one factor, but a combination of domestic and worldwide conditions that led to the Great
Depression. There are many theories of what caused the Great Depression, however, they are not all
agreed upon.
This paper is about how the Great Depression occurred, what the Great Depression is, how it
affected people, jobs, businesses, the President during the Great Depression, World War
II, and how the Great Depression ended on October 18th the stock market began to crash. Panic
started to set in as bankers attempted to stabilize the market. However the market went into freefall
and on October 29th stock prices collapsed completely. The consumer spending dropped and stores
began to pile up on excess goods, which slowed production. Billions of dollars were lost, wiping out
thousands of investors, and stock tinkers ran hours behind because the machinery could not handle
the volume of trading.
After October 29th stock prices continued to drop as the United States collapsed into the
Great Depression. Not only the stock market had been affected. Nearly seven hundred banks
Del pozo 2 failed in 1929 and about 2,300 failed over 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

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

Causes And Effects Of The Great Depression
One of the bleakest economic downfalls in the United States was during the era of the time known
as "The Great Depression." It lasted for ten years from 1929 until the year of 1939 in the United
States. It originated in the United States, mostly effecting the years of 1930's. The events of the Great
Depression spread across nations and ended for some countries as late as 1941. The Great
Depression not only effected the economic life of the American citizens, but also the spirits the
people. The feeling of living in a "Perfect Nation" was so drastically altered mainly by Herbert
Hoover's infamous reign as president. The effect of the stock markets, economy, and presidents'
actions began and founded the resolution of the Great Depression.
Before the Great Depression, the United States was facing the era called "The Roaring
Twenties." This was the era of when the nation's wealth doubled. People and banks invested a
tremendous amount of money. The stock market became very popular and was a way for people
to make a profit, like buying low and selling high. The system seemed to be working as people
were buying goods that they did not have the money to pay for. On October 24th ,1929 a stock
market crashed in New York City which began "The Great Depression." Americans began to panic
and a bank run occurred when a large amount of the banks customers withdrew cash from their
accounts. Unfortunately, the banks did not have the money to fund the people. A hundred thousand
people became

Cause And Effect Of The Great Depression
The Great Depression was when everyone was penniless, out of work. Some of the people didn't
even have homes. When the New York stock market crashed, everybody became poor.
Millionaires were just as poor as the ordinary citizens. The everyday civilians lost everything their
homes, their jobs, their money, it was a bad time for everyone. Soon it spread to the rest of the
country. Then everybody's savings disappeared. It was one of the worst disasters the world has
ever known. Barely anyone was in work and making money. Soon it spread to the rest of the world.
It was one of the worst disasters ever.
The cause of the Great Depression was many things. First the New York stock market crashed. The
people bought stocks with borrowed money. It seemed...show more content...
At the time President Hoover was an unpopular man. He promised veterans a bonus for being in
the army but they never got it. So they marched to DC. When they did this president Hoover said
kick them out two men got killed. A mayor was watching that man was Franklin Delano
Roosevelt. Franklin decided to run for president. He thought that it would elect him. He was right
he was elected for president. He made an oath that he would end the Great Depression. He
decided to focus on the three R's. The three R's means relief, recovery, and reform. They started
with relief. First they allowed alcohol again it did not end the Great Depression but it made
people happier. They also used rotting food on the farm to provided lunches for school children.
They tried to create more jobs for people out of work in need of money. The second R is recovery.
This tried to keep people in their homes. It also tried to provide electricity. The final R is reform.
They tried to keep the Great Depression from ever happening again. All of these things helped end
the Depression. But the real thing was that ended the Great depression was World War two. Finally
the Great Depression was over. If the Roosevelt wasn't there to help it would of been a lot

Causes And Effects Of The Great Depression Essay

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Causes And Effects Of The Great Depression Essay