Known also as Black Tuesday, October 29th left stockholders shattered with recorded losses reaching $40 billion dollars (Kelly, n.d.). Many banks and financial institutions began collapsing which led to irretrievable, uninsured deposits and savings. Fearing further loss, people began spending less which led to a decrease in production and an increase in unemployment. As companies began to fail, the government devised the Smoot-Hawley Tariff in order to protect American businesses. The Tariff placed high taxes on imports leading to a decline in international trade.
This means that the prices for stock were too high, far higher than they were really worth, then they fell drastically. People who had borrowed money to buy high-priced stocks (intending to sell the stocks at a profit and repay lenders), went bankrupt. That’s further expounding on what I said about buying on margin. Black Tuesday also marks the beginning of the great depression (Regan3). Living conditions during this time were unsanitary and horrible.
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.
THE GREAT DEPRESSION American success failed when the stock market crashed in 1929 during President Herbert Hoover’s administration. All of a sudden people were out of work, thousands lost their savings, and the nation was in a state of shock. Even millionaires lost their money. The problems and the causes that led up to The Great Depression were multiple. Farm income went down from the drought.
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.
‘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%.
The prices of the products will either increase or stay the same but the wages of the people will always decrease. Black Thursday…as it was remembered, October 24,1929, nearly 13 million shares of stock changed hands on the New York Stock Exchange, the prices dropped sharply causing great alarm in financial community. The next day, the President reassured the people that there’s no need to alarm because the economy was on sound footing. Days, weeks, months, and years passed people lived in poverty, there are people who are called as ‘hoovervilles’ that were blaming the President of their current living status. The
During the 1930's Canada was going through a tough time and that was because of the Great Depression. They suffered through a drought that lasted for ten years providing the cities with no crops, overproduction of goods allowing there to be not enough goods later on, unemployment causing people to go through poverty, and the stock market crash where people lost everything due to the loans they made to pay for their stocks they wanted to sell in the future. All of these events had a major contribution to the Great Depression, but the main causes of the Great Depression were unemployment, the drought, and the stock market crash (also known as the trigger incident). Unemployment was one of the main causes of the Great Depression. While many people were buying on credit, they needed to pay off their debts and as long as they had jobs they were able to
After the crash of the stock market, banks began to immediately feel the effects. Many people out of fear of losing their lifesavings pulled all their money out of their bank accounts. This reaction to the crash caused banks to lose money fast and they scrambled to get people to pay off debt. Not before long, many banks failed and went out of business, but