Prior to this revolution of machine, progress was slow. This made travel difficult and even dangerous to travel on poorly made roads. However with the industrial boom, it provided safer and shorter travel times, people began leaving rural area and journeyed to the city for opportunities and prosperity. Then October 29, 1929 happened and the stock market crashed, known as “Black Tuesday,” or “Black Thursday”. It devastated not only in the U.S economy and but worldwide.
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
The U.S. American history is characterized by several events that had consequence around the world. One of them is the market crash of the 1929. In the October 29th, the Wall Street had a huge collapse and important reverberations in the entire American market. During the prosperous 20s the richness was unequally spread among people with the effect that Americans were producing more of that they could have consumed. Then the “easy-money policies” caused a growth of credits and speculations in the market.
The stock markets dropped in the late 1929 and people were in panic about money and their jobs. The effects of the depression up until the end of the first War. many soldiers returned and had to compete with low class workers to find jobs, and they started cutting down the wartime for soldiers. The Depression hit Agriculture hard to, it was already a rocky business. People 's confidence in the economy dropped after the crash, people stopped spending so much money, this caused
People were afraid and concerned since they had a major insufficiency of jobs, supplies and shelter. Many companies began to enforce wage cutbacks and increased workload. Relief was not being offered to all the unfortunate Canadians who did not have a job. Many people were laid off from factories which meant that supplies were scarce as not many people could afford to provide for their family’s, people turned to the government to find a solution. I believe that their expectations were much too high as the government was struggling too.
And they never take into account the interests of the people at the bottom, and when they use their own funds to support the foam to be large enough, cruel pierce it and then himself get out easily. Leaving only the bottom of people actively look dead. But they did not know their actions will created the Great Depression for many years, that make they can not live easily either. ③Learning from History As can be seen from the above, those at the bottom of the people’s greedy, the nouveau riche’s extravagance, capitalists’ruthless, they are the human’s factors to the stock market crash. Of course there are many more factors make the formation of the stock market bubble and burst.
Today, 564,708 people are homeless(Social Solutions). The Great Depression has helped shape the United States to become the way we are today. There are numerous reasons this economic catastrophe happened. The Great Depression lasted from 1929-1939(History.com) President Hoover is widely blamed for this. However, he may not be entirely at fault.
Milton Friedman, an esteemed economist, once said that “The Great Depression, like most other periods of severe unemployment, was produced by government mismanagement rather than by any inherent instability of the private economy.” The United States during the 1930’s was in tatters. Unemployment was sky-high, there was overproduction and underconsumption simultaneously, people were starving and companies were bankrupt. In a time of uncertainty and trepidation, Franklin D. Roosevelt came up with a plan to boost the American people from the deep abyss that was the Great Depression : the New Deal. November 1932, proved to be a hopeful time for many Americans, FDR had just been elected and his New Deal promised Relief, Reform and Recovery for
It was problems that Germany could not fix the next day. It was going to take them a while to fix. This was why it was significance to the people because they were getting unemployed and losing their houses. It made many German people on the streets where they could not feed their families. So, this made people die of hunger and lose weight.
With interest rates rising it caused many to default on their payments or take out a second mortgage with they couldn’t afford. By August 2008, 9.2% of all US mortgages outstanding were either delinquent or in foreclosure, by September 2009, this had risen to 14.4% (CSI). This lead to a huge number of house for sale and nobody able to buy them. As a result prices fell leaving people paying more than what there house was worth. This caused even more people to walk away from their mortgage because it was a waste of their
Second Paper The cause of The Great Depression was attributed to the sloppy, careless behavior of banks, who were being too speculative in the way that they were investing their assets while simultaneously buying new issues with the intention of reselling them to the public. Companies were being given questionable loans in order to stay afloat by the same banks who held a stock interest in them! The banks, in turn, would then advise their clients to invest in the same companies that were being propped up by the banks. Eventually, this cycle blurred the lines of what banking was truly intended to do, and when compounded with the amount of risk involved with this type of behavior, the marked crashed. In response to this development, congress began investigating what could be done in order to fix the current economic situation.
One of the biggest failures during his administration was the Panic of 1819; the first economic depression in the history of the United States. This economic depression was brought on by over production and land speculation, which was caused by the national bank; during this period, deflation, bankruptcies, unemployment, and debtor prisons were common. James Monroe offered optimistic statements and not much else. Fortunately the economic depression passed on its own and people regained faith in their president. This strategy of dealing with an economic depression was adopted by future presidents, until it no longer worked, it was at that point that legislation was passed in order to save the country.
The Federal Reserve thought it would come to the rescue by increasing the value of the dollar. How did it do this? By raising interest rates, this slowed down the economy. Without funds to grow, businesses started firing workers, leading to a vicious downward economic spiral that became With the causes and effects of Black Tuesday, businessmen changed their attitudes on economy; the role in economy changed too. Businessmen and political leaders were more eager to change history and improvise so that this wouldn’t be a repeat in history.
Little did anyone know, everything they did was gradually setting the country up for economic demise. Factories were producing more than people could purchase, therefore losing many materials and money. Plus the government was giving out loans that people couldn’t pay back, which gradually brought debt throughout the country. Political wrong-doings, unhealthily high productivity rates, unequal distribution of America’s assets; these were all things that seemed good at the time, but proved to be more bad than good as it led America into its darkest time: The great Depression. At the time of The Great Depression, the US president was Herbert Hoover.
However, some will argue the New Deal was a failure because it discriminated against blacks and put the government in debt. According to document 5, it shows the government increased because in order to help the unemployment rate the government had to spend money on more programs to create jobs. This shows the new deal was a failure because the government debt increased in order for the government to implement new programs for jobs. According to document 7, it shows the blacks being discriminated against. More specifically, the FHA would refuse to guarantee blacks mortgages if they tried to buy in a white neighborhood.