The Severe Causes And Effects Of The Great Depress

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The Severe Causes and Effects of the Great Depression The Great Depression was a severe and brutal worldwide economic downturn 10 years after World War 2 starting in 1929 to the early 1940’s. It was the longest, most widespread and deepest depression of the 20th century, the worse the economy had ever seen. Whether the economy would recover from this was uncertain since the effects of this depression was so devastating. The collapse of the stock market, loss of jobs, bank failures and the withdrawal of purchases are just some of the severe causes and effects of the Great Depression. 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. Throughout the 1930’s over 9,000 banks failed. Bank deposits were uninsured and therefore as banks failed people simply lost their savings. Surviving banks, unsure of the economic situation and concerned for their own survival, stopped being as willing to create new loans. This worsened the situation leading to less and less expenditures. Other causes of this worldwide crisis was the withdrawal of purchases; persons could not pay for installments and so goods were repossessed, unemployment levels remained very high for nearly 10 years and persons lost their jobs. In the 21st century, the Great Depression was commonly used as an example of how

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