The Causes Of The Great Depression

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The Causes of the Great Depression The Great Depression was an economic downfall that to this day is the worst economic downfall in U.S history. The depression started in the United States. People all over the world were affected by it, especially in Europe, Germany, Great Britain and other industrialized areas of the world. Mainly because America was a big creditor to those countries after World War I. The Great Depression lasted in America for at least ten years, but it took twenty-seven years to get the economy back above depression levels. To this day, the reasons that lead to the Great Depression are still being debated; although there are a few reasons that historians and ecoomics have agreed on. Such as, the stock market crash that occurred on October 29th of 1929. This happened when a few investors began selling their stocks, because they thought the bull market was going to end soon. The bull market was when prices were rising due to automobiles; steel was selling at a record high but was going down very fast. If the bull market ended when they weren’t prepared for it, then it would of left many of those investors in debt. Because other investors, which were just mostly your day-to-day average person, saw the wealthy investors selling, they decided to do the same which caused a big fall in the stocks. No matter how hard President Herbert Hoover tried to say the economy was fine, everybody continued to sell. Then finally on October 29,1929th the stock market crashed, because no one was buying and this directly led to the Great Depression. After the Stock market crashed not even 2 months later, the stock holders had lost more than forty billion dollars. Though the market had once again began to come of its losses back by the end of 1930, it was not enough and America entered what we now know as The Great Depression. After the stock market
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