There was a combination of domestic and worldwide conditions that led to the Great Depression. Many have believed that the crash of the stock market on October 29th, is one and the same with the Great Depression. In fact, it was one of the major causes that led to the Great Depression. Two months after the original crash in October, stockholders had lost more than $40 billion dollars. Even though the stock market began to recover some of its losses, by the end of 1930, it just was not enough and America truly entered what is called the Great Depression.
When the stock market crashed, it immediately affected the economy in the matter of a few hours. At this time President Herbert Hoover was in office, and he was overwhelmed with the tragic situation. During his Presidency, he did his best to fix the economy. However, things did not begin to get better until Franklin D. Roosevelt took office in 1932. Roosevelt immediately began reconstruction on the American economy.
The 1920’s in America was an incredibly prosperous time for the nation. America saw drastic economic, political, and cultural change in an age known as “The roaring twenties”. Rapid industrial growth and production, matched by increased consumer demand saw the nation's total wealth double in total from 1920-1929. By 1930, this prosperity had run out and severe economic problems struck the nation. 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.
The Ups and Downs of the 1920’s The 1920’s in the United States flip flopped between two huge economic spectrums in a matter of months. It quickly went from extreme growth and prosperity to economic devastation. The early 1920’s is often referred to as the “roaring twenties” for multiple reasons. During this decade, many people were challenging the old conservative lifestyles, for a new exciting nightlife. The Republican Party had control over the country at this time, causing big business to thrive and expand.
“The Great Depression was the most important reason for the outbreak of WWII”. First of all, to what caused the Great Depression was a number of things. In 1929 the stock market crashed completely. As a result of this thousands of people lost their jobs and became unemployed. Even more so, people became homeless and started begging on the streets.
The new German Republic faced a large number of political, economic and physical problems at the end of World War I. Having lost World War I they had taken a huge beating, taking huge numbers of casualties and their leader, Kaiser Wilhelm, being forced to abdicate. However I believe that the most serious problem they were facing was bankruptcy due to their ruined economy. Before the war, Germany had been very industrial and powerful, having the third most powerful economy in the world, behind Britain and USA. However after the war their economy had been ruined and there was very little money in he system, leaving them almost as a third world country.
This was very different from the policies that are present in this time. Despite guarantees from President Herbert Hoover and other leaders of the country that the crisis would run its route, matters continued to get worse over the next three years. By 1930, 4 million Americans looking for jobs could not find it and that number had already risen to 6 million in 1931. Meanwhile, the country’s industrial production had dropped significantly by half. Bread lines, soup kitchens and rising numbers of homeless people became more and more extensive in America’s towns and cities.
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.
As unemployment reached an all time high in 1933, this decade, was squished between the roaring twenties and World War II, and was left little to be highlighted other than the dismal consequences of the Great Depression. An all-time low in American confidence, the years between 1929 and 1940 tested the strength, courage, humility, and perseverance of those forced to suffer a quickly dropping economy. No longer did hard work transform into success or even hope. Middle class working families now joined the ranks of the poorer classes and farmers hit by the Dust Bowl in the 1920's. The enormous unemployment disrupted family structure as it forced the male provider shamefully into bread lines.
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.