ipl-logo

The Main Causes Of The Great Depression

1057 Words5 Pages

The great depression officially began in Wall Street October 29, 1929 – 1933, and was an economic slump caused by a collapse in the stock market. When the stock market crashed, the stock prices dropped fast and there was little hope for recovery. This lead to panic among the people and all tried to sell their stock at the same time, but this was useless since nobody wished to buy the stock. Therefore, the stock market became the path to bankruptcy. Thousands of Americans lost their job and were forced into poverty. As a result, most people had to travel to earn money. They either hitchhiked or “rode the rails” from different towns, cities and states in search for a job to feed their families or just themselves. (John, -) (Mitchener, -) (Pierce, -)
The cause of the depression started with World War I that caused inflation, because of huge debts and increased money supply. Firms earned a lot more during the 1920s and reinvested this into expansion, by 1929 they had expanded to the breaking point. When the stock market crashed, banks all over America were forced to close because they had invested their client’s savings in the stock market. People were afraid to lose their savings, and quickly tried to withdrawal their money, but such a massive withdrawal of money would force more banks to close. Industries cut back on wages, employees …show more content…

Through a special session with the Congress, later named the Hundred Days, he wanted to relive the depression by passing laws. He made this happen through a program called the New Deal. The laws established by this new program had three main purposes. First purpose was to provide for the needy. Second purpose was to aid recovery by giving jobs and form a bond between government, businesses and consumers. Third purpose was to make sure such a destructive depression never would happen again, by reforming business and

Show More
Related

  • Apush Dbq Essay

    1380 Words  | 6 Pages

    No matter if a country was considered rich or poor, the Great Depression had devastating effects. The unemployment rate increased dramatically, going from 3% to 25%. For the people who were lucky enough to still be employed during this horrible time, their wages fell 42%. However, the crash of the stock market is not the only thing that caused the Great Depression. In the middle of the 1930’s, a severe drought struck and it ruined much of the agriculture of the United States, which was known as the Dust Bowl.

    Read More

  • Great Depression Dbq Essay

    585 Words  | 3 Pages

    The context of the Great Depression is the roaring twenties. At the end of world war one, a new era of prosperity came to America. At the heights of prosperity, the stock market exchange began to rapidly expand as more people began to trade. The Great Depression was caused by installment buying and the crash of the stock market. The first reason the Great Depression happened is that people were buying more than they can afford which is called installment buying.

    Read More

  • Causes Of The Great Depression Dbq

    1004 Words  | 5 Pages

    From 1929 to 1939, the world experienced a global economic crisis known as the Great Depression. It was the twentieth century's lengthiest, most intense, and most widespread depression, and its effects were felt across the world. While there is controversy over what started it, the stock market crash, the banking crisis, and overproduction all contributed to the Great Depression. The stock market was growing in the 1920s, and many people regarded it as a rapid way to get rich.

    Read More

  • What Caused The Great Depression Dbq Analysis

    1159 Words  | 5 Pages

    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.

    Read More

  • What Caused The Great Depression Dbq Essay

    726 Words  | 3 Pages

    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

    Read More

  • The Great Depression Research Paper Outline

    502 Words  | 3 Pages

    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.

    Read More

  • What Are The Underlying Causes Of The Great Depression

    585 Words  | 3 Pages

    America had experienced other depressions or “panics,” but none were like the Great Depression. The Great Depression began on October 29, 1929, Black Tuesday, with the stock market crashing. Most people believe that the cause of the Great Depression was the stock market crashing. Although that is what triggered the Great Depression there were many underlying causes that lead up to the stock market crashing. Some of the underlying causes include under-consumption/over-production, uneven distribution of wealth, loose banking and corporate regulations, tariffs policies, and the stock market.

    Read More

  • Causes Of The Great Depression Dbq

    880 Words  | 4 Pages

    His actions were named the 1st and 2nd New Deal, in which his most immediate goal was to provide unemployed Americans with jobs to stimulate the economy with the help of government involvement. The Supreme Court of the U.S called the New Deal unconstitutional since it overexerted the power of the government. Roosevelt responded by proposing legislation to increase the size of the court to favor New Deal laws, also known as court packing (OI). This was seen as a threat to the system of checks and balances however was deemed necessary by many for the welfare of the country. Roosevelt was a much more active President than Hoover, he placed watches on banks to stop bad investments and a physical rehabilitation of the country to provide a better use of land all to prevent and stop a depression (Doc 5).

    Read More

  • Great Depression Dbq

    692 Words  | 3 Pages

    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.

    Read More

  • What Caused The Great Depression Research Paper

    780 Words  | 4 Pages

    There began to be a gradual decline in prices and the stock market ruptured. On October 24, 1929, the infamous “Black Thursday” took place, where stock holders went on a panic selling spree. Things then went from bad to worse, stock prices went down 33 percent. People stopped purchasing goods and business investments decreased after the crash. In the fall of 1930, the first of four major waves

    Read More

  • What Caused The Great Depression Dbq

    757 Words  | 4 Pages

    The Great Depression of 1929 was one of America’s most influential downfalls that crippled society for years. The depression caused many years of failure and poverty for almost all of society. The government’s role during these times was crucial and critical for turning around the economy. The depression had a major effect on government’s power and involvement with the people and states. The government was less involved before the depression.

    Read More

  • Great Depression Dbq Essay

    766 Words  | 4 Pages

    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,

    Read More

  • The New Deal Dbq Essay

    944 Words  | 4 Pages

    In 1929, the United States stock prices dropped drastically, leaving farmers without farms, banks out of business, and businesses bankrupt. This was the start of the Great Depression. The Great Depression affected the whole country, leaving many unemployed and impoverished. The Depression lasted for a whole decade. In 1932, Franklin D. Roosevelt was elected President of the United States.

    Read More

  • Causes Of The Great Depression Essay

    750 Words  | 3 Pages

    The first cause of Great Depression was bank failure. It was one of the main causes of the Great Depression. Throughout the 1930s over 9000 banks failed. In 1920s there were a lot of banks.

    Read More

  • The Causes Of The Great Depression And The Great Depression

    798 Words  | 4 Pages

    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.

    Read More

More about The Main Causes Of The Great Depression

Open Document