During autumn of 1929 the stock market began behaving highly volatile. Stock market prices were expanded to just about breaking point, and then suddenly it crashed. Because of the Stock Market Crash the gross national product dropped 40 %, $6.1 billion in 1929 to $3.5 billion in 1933 (The Canadian History Page). The Bank had no money left because of the effect of the stock market crash. Wages in the industrial sector were not keeping up with huge increase in manufacture and profits.
What Caused the Great Depression? Many believe that the stock market crash that occurred on Black Tuesday, October 29, 1929 is one and the same with the Great Depression. Actually, the stock market crash was only 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 (Doc D). Even though the stock market began to regain some of its losses, by the end of 1930, it just was not enough and American truly entered what is called the Great Depression.
There are several reasons why America needed the Great Depression to solidify their foundation. There are several reasons why the worst economic depression in the history of the US occurred. There is not one specific cause but many small problems combining to have an effect as great as the depression. One cause was the Stock Market crash of 1929. Stock’s had dropped due to the time period before, known as the “Roaring Twenties” due to WW1, many people had an abundance of wealth which
John majors government came into office after the downfall of Margret Thatcher, which ultimately created divisions within the party. Not only did the party suffer from the internal conflict but also faced the problems of the recession after the ‘Lawson boom’. In order to stabilise the economy he joined the ERM getting a good deal but ultimately resulting in ‘black Wednesday’ causing Major to raise interest rates to 15%. This was political suicide and he soon lost the support of the press we had once relied so much on to get re-elected in 1992. The housing market also plummeted leading to negative equity, which the majority of the working class could not afford resulting in the repossession of their houses combined with the drastic increase in unemployment Britain was in a mess.
During the 1920’s, the Great Depression took effect into America’s economy. The Great Depression was the biggest crisis to hit the American economy at that time and today. The Great Depression took place from the years of 1929 up to 1933, but not completely recovered until about a decade. The Presidents at this time were Herbert Hoover (31st President), and Franklin Delano Roosevelt (32nd President). Even though these two Presidents were both in term during the Great Depression, the two Presidents seemed to have very different viewpoints on how to take control and terminate the Great Depression.
Isaac Bernstein Mr. Cooper US History 12 March 2013 What Caused the Great Depression? The Great Depression, which lasted from 1929 to 1940, was caused by over-production and Americans gambling with their stocks. The environment from the twenties drastically changed from being a “roaring” time period, to the thirties, which were filled with depression. America went from spending money, going to baseball games, and buying fancy clothes, to unemployment, severe debt, and living off food stamps. What happened to America?
The Great Depression was one of the hardest times that the American economy has gone through. The Great Depression began with the Wall Street Crash of October, 1929 and quickly spread throughout the world. The stock market crash marked the beginning of a many years of high unemployment, low profits, horrific farm incomes, lost opportunities for economic growth, and insufficiency of money. Reasons of the Great Depression include numerous things, especially high consumer debt, badly controlled markets that permitted loans that were given out to frivolously by banks and investors, the lack of high-growth new industries, all working together to create a downward economic spiral of reduced spending and lowered production (Rosenberg, Jennifer).
FOLLOW THE LEADER ADOLF HITLER Germany in 1930 In 1930 the Germanic social and economic situation was heading towards chaos. After the Wall Street Crash of 1929, the United States were forced to call back the money they had loaned Germany in 1924 and 1929, leaving the Weimar Republic with no resources to invest in the economy. The Germanic growth over the last years had been an illusion, as a great deal of the capital invested had been coming from overseas loans. As the money borrowed was paid back, Germany was once again facing bankruptcy. Unemployment, which was not a major issue in 1929, dramatically soared by September 1930 1.
The Great Depression There was a period of time when despair and hopelessness hit Americans at full blast. It took place between 1929 and the 1940's and it was an event called "The Great Depression" On October 29, 1929, the day of the stock market crash is when the end for so many Americans started. The banks started closing due to the fact that they invested so much of their money in the stock market and when the people started withdrawing their saving's from banks. Unfortunately, some Americans didn't even make it to the banks to withdraw their savings. Millions upon millions of Americans started losing their jobs as well and a lot of it had to do with the fact that so many businesses and industries closed when nobody could afford to
Unfortunately, it did. On October 29, 1929, the stock market crashed, and the United States once again found itself in economic turmoil. Prior to this, many people had begun purchasing stock on margin, or in other words, on credit. When the market crashed, the stock brokers called the loans they gave out back so that their companies may survive, except the loans couldn’t be paid back by the debtors. Many of the nation’s banks soon went under because they too had paid into the stock market and had lost much of their money.