When the stock market crashed many were unable to pay their debts not only to their stock purchases but also to their banks. Without payments to the loans given out, banks began to fail. Additionally, the gap between upper and lower classes greatly widened, which only increased the economic issues. On top of everything occurring, a drought developed in the Great Plains that created the “Dust Bowl” and destroyed the agriculture business. The sources of downfall in the Great Depression can be traced to the stock market failure, bank failure, farm failure, and job market failure.
Farmers and manufacturers could not do their jobs when they kept losing money by doing their jobs. The more they spent on items or food, the more their business suffered. The Great Depression was a lose lose situation for factories and farms since they lost money by overproducing and by dropping prices to fix the
The new prosperity, technology and glamour America boasted was only promised to the upper class and urban workers; “There was real prosperity in certain pockets of the economy in the 1920s,” as Historian David Kennedy put it. The agricultural sector were especially struggling the most during this decade prior to the market crash. During World War I, American farms were subsidized by the government to expand and mechanize in order to keep up with providing food for the army. After the War, low demands and over-production
The Great Depression was caused by a variety of factors. The first was the lack of diversity in the economy. Growth was very dependant on a limited number of industries, especially automobiles. Because the industries that were booming at the time did not have to be bought so often by consumers, those industrustries’ profits began to decline. From 1926 to 1929, consumer spending fell greatly, particularly in the construction and automobile industries.
What Caused the Great Depression? The Great Depression was a devastating tragedy that changed our economy. In the U.S, the Great Depression shortly happened after the stock market crash in 1929. This sent Wall Street into a great panic and wiped out millions of investors.
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.”
What were some of the causes of the Great Depression? There were many factors to the Great Depression in the United States. The stock market crash of 1929 touched off a chain of events that plunged the United States into the Great Depression. The "crash" began on October 24 (Black Thursday). By October 29, the stock prices will plummet and banks will be calling in loans.
Dropping farm prices and the need to purchase new expensive machinery encouraged many farmers of the 1930’s to borrow money. Therefore, when the stock market crashed in 1929 many farmers who had borrowed money were broke. The remaining farmers had trying times ahead of them. While they were innovations of the time, most farmers only possessed a basic tractor and a plow.
The agriculture remained in depressed conditions from 1923-1929 (Mcelvaine, 2004). Another issue faced and that was a cause for depression was finance. Although the United States went from a net debtor to the world's largest creditor, war debts and reparations were continuing irritant to the international economy in the twenties (Mcelvaine, 2004). The United States was considered banker or creditor-in-chief, which was the role of Great Britain previously, but they were not prepared for it and the leaders were wanting more exported than imported and this was incompatible with America's assumption of the position of the world's leading lender, because the other countries would have to sellmore to the United States than they purchased in order for them to repay the debt they owed the United States creditors (Mcelvaine, 2004). The stock market crash was not the cause of the Great Depression, but it did contribute to it.
JD Salinger uses extreme detail and personal experiences so readers can understand how he thinks about others and classified them as “phonies” .From the personal experiences and detail implied in the book he explains how he lost his innocence and its all his family fault “I was born , an what my lousy childhood was like, how my parents were occupied and all before they had me.”(pg 5)This explains how Holden didn't his childhood and he feels like his parents didn't have the time to take care of him. Which I do agree with, because he uses extreme detail and explanation to prove his thoughts. Another reason why agree they were true because as in one of his quote says “Grand.
The Great Depression, which lasted from 1929 to the late 1930s or early 1940s depending on the country, was primarily caused by a combination of economic factors and events. The consequences of the Great Depression were severe and had lasting impacts on societies and economies around the world. First there was the stock market crash of October 1929, known as "Black Tuesday. " This crash led to a frenzy of selling, causing stock prices to plummet and investors to suffer huge losses. As a result of the stock market crash, many people panicked and rushed to withdraw their money from banks.
The Great Depression is a severe economic downturn that followed the collapse of the U.S. stock market in 1929. The Great Depression lasted until 1939. The causes for the Great Depression are that the stock market crashed, American were buying thing they could not afford, people were buying on credit, slow production, slow sales and an increase on tariffs. The causes for the Great Depression greatly affected America. The U.S. was impacted negatively but the legacy of the great depression has benefited the people and today society.
The Great Depression was one - if not the most - tragic events in the history of America. It was a time of loss, confusion and and panic, as America attempted to regain its stability. The Great Depression occurred directly after the Roaring Twenties, all throughout America. The stock market crashed, causing mass hysteria across the nation. Four major causes of the Great Depression include: the spending habits of the twenties, the unequal distribution of wealth, unemployment, and the stock market crashing.
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.
Nishat kazi (Muniya) 11th grade The Great Depression was one of the worst downturn of economy in the history that took place during the 1930s. It had a catastrophic effect in countries on both rich and poor. Though there are a lot of causes behind the Great Depression,the main three causes were-1.Bank failure 2.Stock market crash 3.laissez faire.
