A. Explain the major causes of the Great Depression There were an innumerable of causes to the Great Depression from the Black Tuesday, economic policies and even a drought in America. To kick off the Great Depression the stock market crashed and $40 billion dollars in American assets were lost in the blink of an eye on what is recalled as Black Tuesday. This affected nearly 700 banks that all eventually failed and caused the many other banks that were able to stay afloat to become reluctant to loan any money out. Without new loans, there was no new money to be spent, causing the government to enact economic policies.
It began with the world economic crisis in 1929 that affected the American nation the most. The crisis of overproduction of goods provoked the Great Depression. At that time, commodities/goods/items could not be bought because of the limitation of money supply - dollars were tied to the gold reserve. The end of the First World War played an important role in boosting the severe economic crisis. The fact was that the U.S. economy was heavily dependent on defense orders, and, after the end of the war, their number decreased, which led to a recession in the American military-industrial complex.
The critical problems in the late 1920’s, threatening american economy was the older industries such as textiles, steel, and railroads, which were basic to the fundamental well-being of the economy, were barely profitable. Crop prices dropped, americans thought the nation would continue to prosper under Republican leadership. The bottom fell out of the market and the nation's confidence, and half of the banks failed. The causes of the stock market crashed and the Great Depression made the collapse of the economy occur more quickly and the depression worse than it could have been. Many were out of a job, and others experienced pay cuts and reduced hours.
“On October 24, 1929 prices on the New York Stock Exchange collapsed. Losses estimated between $8 billion and $9 billion”( Account of the Stock Market Crash of 1929, October, 1929). As a result, the “Great Depression” was a period of severe economic hardship that began in 1929 and lasted most of the 1930’s. Therefore, many Americans lost their jobs, homes, and their savings. “The Great Depression affected many countries worldwide.
People all over the country were all impacted by this prolonged recession. Many people slumped into poverty and became homeless and unemployed citizens. This immense downturn was due to overproduction, the Wall Street crash, and the weak banking system, the European recession, the Gold Standard and the policies implemented by the Hoover administration. The depression lasted for over a decade before an economic upturn began to take hold. This marked the end of the Great Depression in the 1930’s.
Following the conclusion of World War I, countries in Europe struggled to rebuild their war-shambled economies and societies. On the other hand, WWI had seemingly ushered in a new era of prosperity for the Americans. The 1920s, better known as “The Roaring Twenties,” transformed and shaped modern-day American society. However, under the glittering facade of prosperity and fortune, the US economy began to decline as a series of internal failures threatened to undermine the nation. While many believe that the unprecedented crash of the stock market on October 29, 1920, better known as Black Tuesday, was the cause of the dramatic economic downturn of the century, long-term causes contributed highly to the impending catastrophe.
The Great Depression was the severe economic downturn that affected western industrialised countries, in particular, Weimar Germany. The infamous Wall Street Crash of October 1929 in the United States had triggered the beginning of the Great Depression as millions of investors on Wall Street were extinguished. Although the effects of the Great Depression had only started after 1929, a few events commencing from 1923 had been as significant in contribution to causing the Great Depression as the Wall Street Crash was. These events are subject to debate as to which were considered more or less significant as they were all influencing factors to the Great Depression that affected Germany and its history. On October 24th 1929, share prices on
Many Americans found themselves lacking money during the 1930s as the supply of money became unable to keep up with the demand people had for it (Wicker 994). The banks closing and people losing money or property due to loans, left people in a state of poverty as they lacked the money to do anything about it. Alongside the Great Depression, the Dust Bowl occurred as well. Many American farmers faced large dust storms during the 1930s, causing changes to their livelihood and state of being (Lookingbill 1). These dust storms made changes to the Great Plains, forcing away a large number of farm families.
The Great Depression was the worst economic downturn in the history, which lasted from 1929 to 1939. It began after the stock market crash of October 1929, which sent Wall Street into a panic and wiped out millions of investors. Spending began to drop, and it caused declines in employment and some companies began to lay off workers. By 1933, the Great Depression reached its lowest point and millions of Americans were unemployed. The 1920s consisted of dramatic social and political change.
The Great Depression affected literally the whole world, it started a widespread of hunger, poverty, and unemployment. Due to the economic failure not many people were making clothing in the 1930s, but the fashion was really unique. In the 1930s people were recovering from the Great Depression so many companies and