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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 economy of the United States expanded greatly through the 1920 's reaching its climax in August 1929. By this point, production had already declined and unemployment was at an all-time high, leaving stocks to imitate their real value. During the stock market crash of 1929, better known as Black Tuesday, investors traded vast numbers of shares in a single day, causing billions of dollars to be lost and millions of investors to be eliminated. This "crash" signaled the beginning of a decade long Great Depression that would affect all Western industrialized nations; a crash that would later become known as one of the darkest, longest lasting, economic downturns in American history. People all around the world suffered greatly as personal income,

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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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One of the most devastating days in history. It was when the stock market crashed.(Bite Size Canada, 2013, 1). During the 1920s, many Canadians bought stocks on credit, otherwise known as buying on the margin. On Black Tuesday, people who had put their funds and savings into the stocks had lost it all.(Canada in the 20s and 30s, N/A, 3). The stocks had crashed.

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Following the conclusion of World War I, countries in Europe struggled to rebuild their war-shambled economies and societies. On the other hand, WWI had seemingly ushered in a new era of prosperity for the Americans. The 1920s, better known as “The Roaring Twenties,” transformed and shaped modern-day American society. However, under the glittering facade of prosperity and fortune, the US economy began to decline as a series of internal failures threatened to undermine the nation. While many believe that the unprecedented crash of the stock market on October 29, 1920, better known as Black Tuesday, was the cause of the dramatic economic downturn of the century, long-term causes contributed highly to the impending catastrophe.

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There were so may others such as bank failures (due to the stock market crash), the reduction of purchases by consumers in all classes, Americas Economic policy with Europe, and the Dust Bowl. The stock market crash that occurred on “Black Tuesday” was one of the major causes that led to the Great Depression because it signaled a complete loss of confidence in the financial system of the U.S. It is when stock sellers panicked after

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Another factor in the depression in the U.S. is the nation’s industry, or more specifically, the lack of diversification and overinvestment in relatively niche industries like construction, automobiles, and steel production. There was also a peculiar relationship between Americans and the manufacturing of goods at the time; as the economy began to slow down and the stock market crashed, many businesses continued to overproduce goods that most consumers simply couldn’t afford to buy, thus oversaturating the market and causing the prices for said goods to plummet. One of the most notable examples of this was in agriculture, where farmers, many of whom had record harvests in 1929, made only a tenth of the profit they would have had ten years prior (Emory). Though the exact causes of the Great Depression remain cloudy and debated among scholars today, its impact on American life is clear to

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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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The beginning of the Great Depression began on October 1929 with the crash of the stock market. Production was decreasing as consumer spending goods started dropping and goods that weren’t sold went to waste and no profit was made. Slowly, but surely stocks started escalating with huge amounts of profits that had no justification. There were panic events such as “Black Thursday” and “Black Tuesday” in which millions of shares were traded and sold because of panic. As a result of these tragic events shares were worthless and investors were eventually completely wiped out.

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Encouraged by the strength of the economy, people felt the stock market was a one way bet. Some consumers borrowed to buy shares. It hadn’t happened before. It all occurred at The Wall Street Crash of 1929, also known as Black Tuesday the Great Crash, or the Stock Market Crash of 1929, began on October 24, 1929 ("Black Thursday"), and was the most devastating stock market crash in the history of the United States, when taking into consideration the full extent and duration of its aftereffects.

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In the year 1928 the FED began raising the FED fund rates and kept increasing them until it finally triggered the stock market crash, one of the biggest causes of the Great depression. The day the stock market crashed is known as Black Tuesday, the day that changed America. As businesses began

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Economic historians usually point the start of the Great Depression to the sudden devastating collapse of US stock market prices on October 29, 1929, known as Black Tuesday. Some dispute this conclusion, and see the stock crash as a symptom, rather than a cause of the Great Depression. It was an ordinary recession in the summer of 1929, when the Great Depression began in the United States. The downturn became markedly worse, however, in late 1929 and continued

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