Cause Of The Great Depression

In The late 1929 stock market crash led to the economic panic and reformation of the U.S during a time now known as the great depression. The depression has influenced many progress that are impact today .when the stocks market crashed it caused the values of the stocks of many companies to plummet. Without the high values of the stocks. The companies lost their value and could no longer stay in business. The more investors invest in a stock by buying shares the more the price of the shares go up. Investor can sell the share for more than they brought it , making them money. in the 1920 a lot of American’s were heavily invested in the stock market .by 1929 about 2/3 of the money in the stock market was loaned money . Businesses went bankrupt,

The distribution of wealth was not even and so although many people were rich, more than half of the people in the United States were very poor. There was a big gap between rich and poor. No matter how easy it was to buy goods, hire purchase - the poor simply could not afford to buy many of them. Therefore, goods were sold mainly to the rich and middle classes. By 1929 these who could afford consumer goods had already bought them. Since American industry was churning out more goods than it could sell, there was overproduction. With this, profits fell and share prices were also bound to fall. Another cause for the Wall Street Crash was that there was no export market for American goods. The government had put limits on foreign goods. Different countries did the same to the USA. They wanted to protect their very own market. This made American goods expensive abroad. It was also hard to sell to other countries because they had not had an economic boom. They could not afford American goods. There were effects that were caused by the Great Depression. Some of these effects were international and some were national. Some international effects were raising their taxes and balancing their

ticker whelmed that it quickly fell behind .a crowed gathered outside of the new york stock change on wall street shock at the down fall . Rumors were said of people committing suicide . When a group of bankers pooled their money and invest a large sum back into the market, their willingness to invest their own money in the stock market convinced others around to stop selling foe awhile . The morning had been shocking , but the recovery was amazing . By the end of the day many people were buying stocks again . At what some thought to be bargain prices. because of the thriving market loan money from banks and invest in the stock market .when it crashed they could not pay loans back and the banks lost lost of dollars . The federal reserve was half apart of a cause of the stock market crash because it originally owned the government and fueled the speculation . The federal reserve would loan the government money and the government would have to pay them back with taxes of all citizens of the united states . This would cause inflation cause all the people would be taxed and they would not be a wealthy. Another cause of the 1929 stock market crash was the liquidation of British investment in the united states market. The speculation theory is the theory with the most evidence to support it. The total value of stocks was 26 billion dollars and it increased to 87 billion in the months leading up to the