The economy plummeted and everyone felt the effects of it .The severe downfall of the American economy in the 1930’s known as the Great Depression was the result of speculation and installment buying, income maldistribution, and overproduction throughout America. After the roaring 20’s, speculation and installment buying drastically increased
Many historians believe that the immediate cause of The Great Depression was the Stock Market Crash in the fall of 1929. That event occurred on October 29, 1929; also known as Black Tuesday. It also marked the end of the era known as The Roaring Twenties. On that day stocks plummeted to an all-time low, causing mass devastation. However like history has shown, a time of economic prosperity, like the Roaring Twenties, result in a depression.
The Beginning of the Great Depression One of the most historical events took place from 1929 thru the 1930’s. It took place in one city, but it affected the whole country of America. This well known episode is described as the first era of The Great Depression. The one situation that sparked this chaotic event was the major stock market crash that occurred on October 29, 1929. (Rothbard &Newton, Intro) During this time Herbert Hoover was president and the American culture was spiraling out of control.
The collapse of stock market happened because it had a weak foundation. In fact, it was dependent on borrowed money; banks would lend money to the population to buy shares in the market without making sure the borrowers were able to pay back. Moreover, facing the crisis over nine thousand banks were obliged to close, for they invested their client's savings in the stock market. Going through rough time financially, Americans are drastically forced to reduce their spending which lowered the amount of production; therefore, employers slashed the numbers of employees that caused the unemployment rate to rose from 4.2 in 1928 to 8.7 in 1930 and to 23.6 in 1932. In the middle of the crisis, several social classes experienced a harsh time.
During the 1929- 1932 Australia experienced the great depression. Depression is a time of low economic activity which meant there was no money circulating within the population, the businesses did not make money and therefore no jobs were available and no one could buy anything. The great depression was a time of extreme hardship for the people in Australia. The Australians most affected by the depression were people who lost their jobs and were unable to find one. It was still the era of traditional social family structure, where the man was expected to be the sole bread winner.
Effects and Results of the Great Depression During the year of 1929 a tragic event happened that affected the United States of America for the worst. This event is known as the American Great Depression. It was a crash in the stock market that sent the United States into an economic downfall of the greatest proportion. This occurrence lasted from 1929 up until 1941, when the United States supposedly wasn’t in the war. Thus these are basic events leading to and resulting from the stock market crash of 1929.
Among both sources, the conditions under which people lived during the Great Depression can be described as “the end of an era for those who had come to believe in ‘money for nothing’” (Harman 469) and “so long-lasting, so severe, and so global that it has become known as the Great Depression” (Bentley-Ziegler 985). It’s true that the world was in turmoil. People of all ages and of all social classes were panicking, some believing the times impossible to bear. For some, this was true. The Stock Market Crash, which coincided with the Great Depression, allowed for further suffering, especially great financial toil.
The Great Depression was the longest lasting economic decline in the history of the United States. After the stock market crash of October 1929, the Great Depression followed. The event caused Wall Street to go into complete dismay, and wiped out millions of banks. For the next decade, social fabric was changed as well as the role of government. For example, spending was lessened and investment was dropped.
‘The Wall Street Crash was the main reason Hitler got into power’. Do you agree? When the Wall Street stock market crashed in 1929 America’s economy was plunged into a depression. This had a big impact on Germany’s economy, as they relied on the loans from America, and was a big reason in the Nazis coming to power. However there were many other factors that contributed towards the Nazis rising to power, for example Propaganda, the weakness of the opposition and the role of Hitler.
When the stock market collapsed on Wall Street in October, 1929, it sent financial markets worldwide into a meltdown this was tragic for the German economy. The German economy was vulnerable because it relied on loans from America and exports to fuel it. German workers were laid off. Along with this, banks failed. Inflation soon followed making it hard for families to purchase expensive necessities with devalued money.