ipl-logo

Black Tuesday Was The Main Cause Of The Great Depression

762 Words4 Pages
bulb-icon

Recommended: Black friday and the great depression

The Great Depression

Ashley Kuhl Mr.Assareh English I 21 March 2016 The Great Depression The Great Depression was started with many things, but the main reason can be traced back to “October 29, 1929” , also known as Black Tuesday, Black Tuesday was the day that the stock market crashed. The stocks fell “10-15 billion dollars” on that day. The great depression began right after the Roaring Twenties when women gained independence and dancing was on the rage. Why in time where the economy was good and everyone was living comfortably would the economy take such a downfall.

People began buying on the margin. They thought that getting a loan and putting it on the margin, but the stock went down and they couldn't pay back their loan. Everyone …show more content…

This caused the Stock Market crash and initially the Great Depression.

Overproduction was caused by people making the stuff they couldn't afford. This lead to overproduction of cars and radios. In the end this led to businesses to raise pay so that people could buy their manufacturing product. The companies that went out of business lowered our economy. This caused people to take out loans and that is when run on banks started up.

The run on banks invested money in the stock market and lost money just like everyone else. They also loaned money to stock speculators who lost their money on black Tuesday, just like everybody else. Then people started losing faith that the banks could pay them back so everyone started taking large amounts of money out all at once. The banks didn't have enough money to give everyone their money back and the banks went out of business. Most people lost most, if not all of their money. This caused the uneven distribution of …show more content…

There has been about 9,000 banks that failed, and “30,000 businesses” failed at this time also. This made it hard to support or even feed your family. This is the time that soup kitchens became common,and used to benefit the rich and the poor. Soup kitchens in the depression helped by feeding the poor and rich had money took off of their tax payment.

People could barely feed their family let alone pay for their house. People started to become homeless and move into hoovervilles. These were made on unused public properties where people made houses out of whatever they could find like, random sheets of metal, Things they brought from their old house, and things other people have thrown away. People managed to survive in these harsh conditions. People who had children and family did this, but men who were by them self were known as hobos.

Hobos ride on the railroad and passed through small communities called hobo jungles. The hobo jungles would tell other hobos where to get food, if it was safe, where they could sleep and where they could work. Hobos wouldn’t stay in one spot for a while. They stayed in places until they couldn't find any more work then they rode the rail roads again till they got to a new

Show More
Related
742 Words | 3 Pages

After the end of World War I the Untied States entered a period of the Roaring Twenties. During the Roaring Twenties, production was high, spending was high, and the Stock market increased by over four hundred percent. By 1929, stocks were overpriced, factories were overproducing goods, and bad credit all climaxed with the collapse of the American economy. By the time the United States realized what was wrong the economy was plunging with no end in sight. In an attempt to prevent the collapse JP Morgan invested one hundred million dollars into the stock market to try and calm people and prevent selling.

Read More
417 Words | 2 Pages

Buying on credit, overproduction, and income inequality were just some of the leading factors to the great depression. It began when installment buying was introduced people didn’t view debts as shameful and bought things at a faster rate than they could pay. People were also investing a lot in the stock market one day it crashed. October 29, 1929 (now known as black tuesday) was the day the stock market crashed. It caused great panic in America since many peoples entire life savings were lost in one day.

Read More
625 Words | 3 Pages

The place to go get rich they called it. Wall Street had the biggest boom in the 1920s, which was influenced by the United States successful venture of World War One. This prosperity seemed to have no end but on October 29, 1929 (now known as black Tuesday) the American Stock Market crashed. This thus plunged the United States into the deepest economic depression the world had yet to witness. This depression began due to the stock market crash but other reasons such as the massive income inequality and the new American system of instalment buying set the course with ultimately lead the United States to The Great Depression.

Read More
174 Words | 1 Pages

The great depression in the US, which began in 1929, and ended in 1938 was caused by many different things all happening at the same time in the economy. The wall street crash in October 1929 was one of the main causes, when the stock markets crashed. This was caused by many things, but the main reason for it was a deflation (which is an event where the general level of prices in an economy are reduced) On October 24th (black Thursday), share prices dropped by 14 billion dollars in a day, and more than 30 billion in a week. This forced many of the banks to close, due to them investing their client’s savings in the stock market.

Read More
564 Words | 3 Pages

    The great depression occurred due to the stock market crash of October 1929.

Read More
569 Words | 3 Pages

They were very upset that the bank lost all their money so the people lost trust in the bank. The stock market crash of 1929 was what started the Great depression. Things just got worse and worse since then. With people losing their money companies lost their money along with it. Companies could not afford to keep and pay all their workers.

Read More
775 Words | 4 Pages

People sell more stocks the lower the stock fall. As a result, the market crashed. Americans became unemployed and could not pay rent so they became homeless and started to live in dirty conditions. Americans could not even afford to buy food for their families and so they started to wait in line for free food. It was completely based on luck; some people got food and some starved.

Read More
997 Words | 4 Pages

Question 1: What caused the Great Depression? Answer: While the immediate trigger of the Great Depression was when the Stock Market crashed on October 9, 1929 (“Black Tuesday”), there were other underlying issues that attributed to the weakness in the U.S. economy. Other factors: Overproduction in industry, “by 1920 the booming construction and automobile industries began to lose vitality as demand sagged. In fact, increases in consumer spending for all goods and services slowed to a lethargic 1.5 percent for 1928 – 1929.”

Read More
930 Words | 4 Pages

The Great Depression was one of the lowest economic struggles in Canadian history. Throughout this tough time period banks started failing and shutting down. Businesses shut down as well because they were going bankrupt. Additionally the drought that hit in the mid 1930’s caused many people to lose their lives or flee the country. The Great Depression was caused by many social, economic and environmental issues.

Read More
668 Words | 3 Pages

In 1929, there was a loss of over $25 billion, and a significant number of people were in debt. Due to a lack of money, payments for necessities or basic needs like food, mortgage installments, and other purchases were impossible to afford. Furthermore, widespread unemployment resulted in bank closures due to people taking all their money out of there. All of this contributed to the stock market crash, which caused the Great Depression. It lasted a decade, during which many people struggled to make purchases that would ensure their survival.

Read More
1531 Words | 7 Pages

People went to get their money back causing banks to fail, causing the economic Panic of 1873. This economic issue lasted a little over 30 years (Wikipedia, Panic of

Read More
502 Words | 3 Pages

The Great Depression The Great Depression was by far one of the worst times of America’s history, and the world’s history. The Depression affected everyone except for the politicians and the wealthy. During the depression a lot of people lost their jobs which caused the unemployment rate to sky rocket to 14% of America’s population was unemployed, and the number would stay their till World War 2, and the depression started in the 1920’s. Middle class workers were hit the hardest in the depression. Most of the middle class citizens lost their jobs.

Read More
585 Words | 3 Pages

America had experienced other depressions or “panics,” but none were like the Great Depression. The Great Depression began on October 29, 1929, Black Tuesday, with the stock market crashing. Most people believe that the cause of the Great Depression was the stock market crashing. Although that is what triggered the Great Depression there were many underlying causes that lead up to the stock market crashing. Some of the underlying causes include under-consumption/over-production, uneven distribution of wealth, loose banking and corporate regulations, tariffs policies, and the stock market.

Read More
726 Words | 3 Pages

The majority of people made under 2,000 dollars a year (Document 9) which was considered the bare minimum to live off of, the buy all of the basic essentials. These people didn’t have any money to spend on luxury items and couldn’t buy on credit. During this time, some companies priced their goods at a higher price than the majority of people made in a year, like boats that were priced anywhere from 10,000 dollars to 35,000 dollars (Document 8). With nobody to buy from them, these businesses were left without a profit and began going bankrupt. An average family before the depression with two people working full time jobs only made around twenty dollars a week (Document 7).

Read More
780 Words | 4 Pages

There were a variety of causes that caused the Great Depression, but the main cause that started it was a decrease in spending. This led to production decrease because manufacturers and merchandisers did not want to have unused items just sitting on the shelves. In October of 1929 the stock market crashed. The United States stock prices had reached levels that could not be justified by sensible predictions of future earnings. The results of this were catastrophic.

Read More

More about Black Tuesday Was The Main Cause Of The Great Depression

Related Topics

Open Document