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Causes And Effects Of The Great Depression Essay

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The Great Depression started for many different reasons and had many different causes. America was going through a huge change and their economy was better than ever. Everyone was interested in getting rich quickly so they all began to rapidly buy stock. Unfortunately, in the year 1929 the stock market suddenly crashed. Everyone who invested in stock lost tons of profit and could not get their money back. There were all too caught up in their own problems and confident that nothing bad would ever happen to them. So, when the crash happened in 1929, everybody was shocked and caught so off guard it made The Great Depression progress that much faster. Another key effect of The Great depression, was after the stock market crashed, a lot of the banks in the country ran out of money and had to shut down, causing the …show more content…

With the stock market crash and collapse of stock prices, things like consumer spending went down and caused business leaders trouble. They believed in order to survive and keep the business alive they had to take certain measures. As their stocks kept falling, companies began closing down plants and having workers join the many in the unemployment. However, the problem of production just got worse. Companies started to fire more and more workers and close down even more plants. This caused even more people to be unemployed and so they received little to no money. This caused people to buy even less things and for consumer spending to go down immensely. So again, business leaders cut more workers and closed down even more plants. By 1933, about 25% of all American workers lost their jobs. What business leaders failed to realize was by trying to help production through the methods they did was just making things a lot worse and was a major reason why The Great Depression occurred. By trying to help fix the problem of money and production, they just caused it to happen much more

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