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Black Tuesday: The Cause Of The Great Depression

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Since the birth of the United States of America, the country has been a growing nation of ingenuity and economic wealth. Revolutionary inventions like the telegram, cotton gin, and the steam engine helped to pave the way to allow the United States of America to develop its position as a fast rising world power. Even though the country was on the fast track of economic prosperity, there was a period where the nation faced a severity of issues spiraling the economic boom to a poverty-stricken era. This gloomy period on America’s economy would takes its place as the Great Depression. Several factors caused this recession to tumbled the economy into the Great Depression, but the crash of the stock market on October 29, 1929 marked the beginning (Murrin et al., 2012). This catastrophic day in history is known as Black Tuesday. The stock market saw billions of dollars lost as stock values dwindled. However, the surrounding factors involved in the cause of this stock market crash devastated the economy but a series of other instances helped to continue the economy to plummet. …show more content…

These beliefs allowed for the buildup of loans and credit beyond what banks were able to cover financially, and once Black Tuesday sparked the beginning of the Great Depression banks found themselves in financial despair. The inability for banks to pay their customer, which had positive balances force these financial institutions to close their doors. This additional factor in the Great Depression drove the government to develop regulated banking practices. The Emergency Banking Act and the later development of the Federal Deposit Insurance Corporation assisted the availability of federal loans and the protection of depositor’s money (Murrin et al.,

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Great Depression DBQ On October 29, 1929, the stock market crashed and thousands of lives were changed and millions of dollars were lost. It came to be known as Black Tuesday, the day when the stock market dropped incredibly and life was never the same. On the 24th of October, the market dropped a little, but on the 29th, the market crashed completely. Americans were scared and in disbelief, so they rushed to the bank to claim their money before their life savings were gone forever.

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Because of the Great Depression, by 1933, nearly half of our country’s banks had already failed. Just four years after the depression began, the national unemployment rate was increased from 3% to an astonishing 25%, meaning that

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The great depression was an economic problem in the United States that started with the first domino to fall in 1929 with the stock market crash. In one day alone the United States lost over 14 billion dollars which this dramatic loss alone America’s industries would slowly start to fall 2 months after the crash in, stockholders had lost more than $40 billion dollars. During the 1930s, more than 9,000 banks failed. Bank deposits were not insured and, therefore, as banks failed, people simply lost their savings.

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The Americas experienced drastic change during the Great Depression, causing it to be a large turning point in federal government’s role in managing the economy. Although it was a time of significant destitution, The Great Depression promoted the reformation of government and management in order to rehabilitate the economy and secure a better and prosperous future. New Deals were formed to restructure what was dysfunctional in the order. These changes were allowed by the opinions raised by political leaders and the public, after viewing startling statistics showcasing a negative downturn in America’s economy.

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Elizabeth Warren, Senator of Massachusetts, described America’s economy as a boom an and bust economy leading up to the Great Depression. She explained because of the economy’s sporadic growth and decline that kept repeating, the outcomes of it were, “fortunes were wiped out, ordinary families were crushed under it.” The unfortunate event in U.S History caused many families across the country, particularly to the working class, to live in poverty due to the declining economy and employment instabilities. Franklin Roosevelt, the 32nd U.S President, created a series of programs called the “New Deal” that helped those who were in poverty in these dire times.

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