The Great Depression changed and effected Americans and the economy. Millions of Americans lost their jobs and homes. The economy went though a lot of failure of meeting financial obligation in banking and in trading. Because of this Europe and many other nations were set back from many of our abilities to help with their broken economies as well.The unemployment in the Depression was very scary. The Depression started with the market crash of 1929.
In October of 1929, the worst and longest depression of American History began. The Great Depression marked the end of the roaring twenties and the beginning of what would become a very long economic struggle. The depression began when the stock market crashed. Many investors dumped their stocks and ran for the banks to clean out their bank accounts because most of them bought stocks on margin and were going to lose all of their money. So many people were afraid and did this that there were many banks that ran out of money to give people and had to close.
Great Depression The Great Depression was a global economic crisis that started in the early 1920s. This crisis leaded a depression around many nations and many young people. On October 29, 1929 there was a crash of the New York exchanges. The credit dropped rapidly after people kept on spending money, when they didn’t have any money. The stock market crashed rapidly, and took a big hit to the U.S. economy.
The stock market crash was involved in the causes of the Great Depression, because it was the trigger point of it all. “In the 1920s many people wanted to put their money into stocks, so prices got higher and higher” (Lunn, Moore 235) the stock markets were very high by 1929. Although there were some people who bought the stocks, “the stock market was fuelled by borrowed cash.” (Berton 29) in other words the stock market mainly made sales from people who could not afford the stock completely and when it crashed on October 29th, 1929 “the Montreal and Toronto stock exchanges also plunged downward; 16 companies alone lost $300 million of their value” (Bolotta, Hawkes 104) also causing investors who were buying on credit, to lose their homes, businesses, cars and many of their other belongings that they put on loan to buy their shares, leaving them homeless, jobless and if having a car for transportation was a necessity, then these investors and their families had nothing at all. Therefore the stock market crash was a very significant part for the cause of the Great
It brought devastation to the United States’ economy, as well as actual “depression” to the American public. Various issues caused the fall of the most prosperous country in the world such as, the accumulation of installment loans and lack of government agencies regulating the stock market. Throughout the 1930’s, the American government and its people dealt with the depression in numerous ways. Herbert Hoover was the
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.
Starting in the year 1929 and lasting throughout the 1930’s, America was brought into the worst economic slump that America and the rest of the world has ever been brought into. This would soon be known as The Great Depression. What caused this depression was the crash of the stock market in 1929 and almost all of the Americans had to suffer from the stock market crash. People were without jobs, homeless, and left without nothing but their families and the clothes on their back. Some of the hardships that the Americans faced were unbearable.
Was the great depression the main reason why the Nazi party grew between 192 and 1932? Many people believe that the Nazi party grew so rapidly because of the great depression. The great depression caused many problems to people’s lives. One group of people that were affected were the middle class. The great depression meant that many of the families had lost their savings; it was horrible to know that all the money that they had saved throughout the years has just vanished so quickly.
Iluta Urka History 220 The panic of 1873 set off a depression that lasted six years, the longest and most severe that Americans had yet suffered. Thousands of businesses went bankrupt; millions of people lost their jobs, and as usually occurs, voters blamed the party in power for their economic woes. The primary cause of the price depression in the United States was the tight monetary policy that the US followed to get back to the gold standard after the US Civil War. The US government was taking money out of circulation to achieve this goal; therefore there was less available money to facilitate trade. Because of the Panic of 1873, governments depegged their currencies, to save money.
‘We in America today are nearer to the final triumph over poverty than ever before in the history of any land.’ This was said by New republican president, Herbert Hoover, in 1928. However it was not true, for within a year, America had lost all confidence and it had fallen into the depths of depression. The Great Depression was an economic crisis which started with the crash of the Wall Street stock markets in 1929. It was a tragedy which affected all areas of American life. It caused unemployment rates to rise, reaching as high as 25%.