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
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 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.
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.
On Wall Street on October 29, 1929 stock market prices came crashing down, causing one of the worst economic crises in America. This day would be forever remembered as Black Tuesday, the day the stock market crashed. There are multiple proposed reasons for why the stock market crashed in 1929 such as margin buying, investment trusts, and a build up of a few other factors. One of the most contributing factors to the crash of the 1929 stock market was margin buying. Kurtzman says margin buying is a risky technique involving the purchase of securities with borrowed money and using the shares themselves as collateral (81).
The share prices were lower, which caused the crash of the stock market. The collapse of the stock market was thought to be the main cause of the great depression, but many economists do not think so. Great Depression very quickly was spread all over the world. The Great Depression was a period of high rates unemployment, bankrupting banks, lowering prices, and increasing the uncertainty to American nation. Moreover, it brought big changes in U.S politic, society and culture.
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.
However it can be argued that the roots of Hitler’s appointment as Chancellor in January 1933 lie in the disaster of the Wall Street Crash of 1829 and the subsequent depression. This economic crash and the rise in unemployment had the important effect of further polarising German politics. The fact that Germany’s growth in the 1920’s had been funded by American capital which was now forced to withdraw hit Germany’s industry hard. Furthermore it was unemployment and the consequential insecurity that so undermined confidence in the present structures. By 1933 over 6 million German workers were unemployed.
The Causes and Effects of the Great Depression On October 29, 1929, the stock market crash set in motion a series of events that led to one of the darkest periods in American economic history, the Great Depression. The Depression lasted for over a decade and the United States did not fully recover until 1941. While Franklin D. Roosevelt’s New Deal is mostly credited for getting the country of the depression, the main factor that helped was the countries entrance into World War 2 which provided many jobs such as munitions and ammunition that gave jobs and helped re-stimulate America’s economy. We know how the United States has fared since recovering from the depression, but what really caused it? The first cause actually started in the 1920’s.