Farming and rural areas suffered as crop prices fell by approximately 60%. There were many causes of the Great Depression, ranging from poor spending and over production to banks failing and the stock market crashing. Paragraph 2: Due to the Roaring 20’s, people were overconfident due to the information given by bad leaders, which led to poor spending. Doc A+B: According to the business cycle, there was going to be a 5 year growth for everyone in the US. -They would all become rich and poverty would just go away (Words of President Calvin Coolidge) Doc C: John T. Raskob, a well-known economist, told people to buy more stocks and in invest in banks and you’ll become a millionaire.
Being able to track sales compared to the previous years’ numbers is a valuable tool in being able to track business. They use this information to forecast on where they think the business will be heading in the next week, month, or year. If the debt percent gets to high then they need to adjust the amount of liabilities that they have to bring that number down. Knowing the times interest earned ratio allows the managers to know at what percent the company is earning interest on its net income. Investors find this information lucrative because the more expendable cash a company has the more likely they are to pay out in dividends for the stock holders..
Due to various motives, she ended up spending millions of dollars on herself instead of paying off France’s debt. Her impulsive buying lead to a more extensive deficit on the country. People began to circulate scurrilous stories about the Queen and her private life. As the situation got worse, mobs were organized and riots were out breaking across the nation. Also, Marie Antoinette’s Diamond Necklace affair was a sensation that took hold of the nation by storm.
The Great Depression was unexpected, yet inevitable. The stock market prices were inflated to nearly breaking point, but there were no actions to show for it. Eventually, people started to realize nothing was resulting from all the stock buying - and panicked. Everyone started selling as much as they could, as fast as they could so they could still make some profit. The major economic figures of the time tried to sustain the stock market by investing all they could, but to no avail - the prices took a huge tumble, and it would be a long time before they would manage to rise up again.
This means that the prices for stock were too high, far higher than they were really worth, then they fell drastically. People who had borrowed money to buy high-priced stocks (intending to sell the stocks at a profit and repay lenders), went bankrupt. That’s further expounding on what I said about buying on margin. Black Tuesday also marks the beginning of the great depression (Regan3). Living conditions during this time were unsanitary and horrible.
Some of the hardships that the Americans faced were unbearable. However, there was light at the end of the tunnel, for the government did have ways to help them out of the Great Depression. Throughout the long and hard period in which the Great Depression lasted through, Americans faced many problems and hardships. First, the unemployment rate in the U.S. immediately skyrocketed after the Stock Market crash. (Doc.
The stock market was a place where you could invest in stocks basically buying a share in a certain business. The stock market put America in the golden age and virtually abolished poverty in the 1920’s. The many changes in the economic, social and political changes in the twenties had a huge impact on American life. We had a very successful era and it show that we can rebuild America, as we know
There was a 27 day crisis when the Whitlam government couldn’t get its Supply bills passed and it was during this period that there was an escalation in un-employment and interest rates and this was all because of the governments’ big spending developments. With an escalation in un-employment it meant that the generation of jobs for everybody was finished. It was during this economic recession that profits collapsed and industrial disagreements intensified. House prices were similarly been raised and inflations were getting out of control as the government was on its second year of developments and new spending on health, urban development, education and the environment. As the government backed up big wage rises consumer prices rose and because since there was a global food shortage it pushed up food prices.
Many of the items in the palace would cost the country thousands of dollars. Many outrageous clothes would be put up in the castle to show beauty even though it would put the nation into a deeper debt. All of these costly materials would help fuel the lower class people to revolt and change the French forever. The guillotine was also known as the “National Blade” because of how many lives it would take in such a short time period. Almost every crime would be punishable by death of the blade.
President Roosevelt was there every step of the way after the crash during Hoover’s presidency. The start of the crash began with “Bull Markets”, meaning, stocks were becoming overpriced and not based on the actual value of the company. A stock market crash was bound to happen but at that time people didn’t care. People were buying loans like crazy in order to buy stocks, over 10 billion dollars was loaned to these people. In a lecture by Professor Newman, it was made known of the concept “selling short”, meaning, big businessmen would try to make more money on a market they knew was going down, and with that came a lot of common people losing money.