ipl-logo

Great Depression Essay

595 Words3 Pages

Jay Weber

Mrs. Unger

English

24 April 2023

Main Causes of the Great Depression

The Great Depression was a big worldwide problem that did not just happen in America and there were many causes for it. By looking at the causes of the Great depression, people could learn more about it and try not to repeat history. What is believed to be some of the most likely causes of the Great Depression are how World War I left America, the Wall Street crash, and the banking panics and failures.

World War I was one big factor for the cause of the Great Depression. America was in World War I for only 19 months. Despite that they spent “$32 billion, or 52% of national product at that time” (“The Economics of World War I”). America needed money for the war, so they made what was called the “Liberty Loan.” This loan asked American citizens for some money. This loan raised $17 billion dollars and $8.8 billion from citizen’s taxes. The inflation after World War I was also bad. In the period of 1914-1920 inflation in …show more content…

The Wall Street Crash happened in 1929 and was one of the biggest crashes in history. The reason why the stock market crashed was because “millions of people invested their savings or borrowed money to buy stocks, pushing prices to unsustainable levels” (“Stock Market Crash of 1929”). This event kind of made a chain reaction that made things worse. The people who invested money into the stocks in the Wall Street crash lost much of their savings (“Unemployment during the great depression”). This caused them to spend less, which created lower demand for goods and services, and when the business saw the fall in spending, they cut back on output and hired less people for jobs (“Unemployment during the great depression”). The stock market crash was the beginning of the Great Depression and led to the depression getting worse in other financial areas such as

Show More
Related

How Did The Smoot-Hawley Tariff Affect The Economy

633 Words | 3 Pages

Overproduction and a faulty banking system were two of many factors that led to the Great Depression. The Smoot-Hawley Tariff also served to deteriorate conditions. Although several would argue about the causes of the Great Depression, one thing is for sure: this economic crisis was the most important economic depression of the twentieth century, which was accompanied by significant deflation and an explosion of unemployment and pushed the authorities to a deep reform of the financial

Read More

Great Depression Dbq

634 Words | 3 Pages

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.

Read More

How Did Americans Grow During The Roaring Twenties Dbq

1053 Words | 5 Pages

Leuchtenberg sad, “There was no single cause of the crash and ensuing depression,” [Doc2]. Many things as stated earlier contributed to the crash, such as overexpansion of credit, goods, industries and rising rates of unemployment. Many Americans saw the Stock Market as an easy way to create wealth by buying stocks cheap, usually at a margin, and selling for a higher price, hopeful to profit. Buying on margin was the act of paying some money on a stock, but loaning the rest from a bank who expected would be paid back when profit was made. Stocks became more expensive to the point where nobody wanted to buy them because of their extreme price.

Read More

Great Depression Dbq

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

Great Depression Dbq

448 Words | 2 Pages

Three of the main causes to The Great Depression involved the crash of the stock market, job loss and buying on credit. To begin with, the crash of the stock market was the starting factor that let to the downfall of many lives. The stock market was flourishing with investors but reduced economy by 60% over all (Document 1). Around 4 million Americans including many banks had invested large amounts of money in stocks hoping to earn gains (Document 3).

Read More

Why Is Herbert Hoover A Bad President

1069 Words | 5 Pages

The Stock market Crash was one of the causes of the Great Depression. One cause of the Stock Market Crash was the stock exchange. This led thousands of Americans to invest in stocks and lose money. Many Americans borrowed money from the bank to buy stocks. Most of the time, people who lost money were unable to pay the banks back their debt; which caused banks to fail.

Read More

Great Depression Dbq

518 Words | 3 Pages

There were many factors that led to the United States to go into the great depression. For example, the main one was the crash of the stock market. After the stock market crashed. Many banks had to close, and many people that had their moneys in the bank, lost it all. Also the amount of loans and debts that were created do to world

Read More

What Caused The Great Depression Dbq

1228 Words | 5 Pages

The Great Depression was a complex event caused by a variety of factors. The six factors of the Run on the Banks, the Stock Market crash, the uneven distribution of wealth, problems for business and industry, problems for farmers, and the overuse of credit all played a role in the start of the Great Depression. All of these factors were an important factor in helping start the Great Depression. However, the overuse of credit was the most important factor of them all because it led to people relying on loans, too many payments for the consumer to adequately keep up with, and the economy eventually drying up once the influx of money stopped.

Read More

Great Depression Dbq

372 Words | 2 Pages

The Great Depression was an economic crisis in the United States from 1929-1941. The Stock Market Crash was one of the primary reasons that caused the Great Depression. The Stock Market Crash was caused by too many people withdrawing their money from banks at the same time. This happened because they heard that banks were going to close and they didn’t want to lose their money because of that. Banks needed people’s money to use for investments and since they didn’t have any, banks began to close.

Read More

The Glass Castle Film Analysis

500 Words | 2 Pages

In the 2017 film adaptation of The Glass Castle, Destin Cretton adapts the overall tone, mode, and characterization in an effective manner. Although some parts of the plot are missing, the delivery of the story is still done efficiently. At her home in Southern Arizona, three-year old Jeannette Walls’ pink dress catches fire while she is cooking hot dogs in her family’s trailer. Upon hearing her screams, Jeannette’s mother rushes in from the other room and puts out the flames with a wool blanket. Jeannette’s injuries are serious but the doctors are able to treat the burns.

Read More

Great Depression Dbq

1384 Words | 6 Pages

The stock market crash of 1929 is often viewed as what started the Great Depression. However, the crash was not the cause of the depression but one of several factors that contributed to it. One possible cause of the Great Depression was the rapid expansion of credit in the 1920s, which led to a boom in consumer spending and stock market speculation. This created a false sense of prosperity, which eventually led to the crash. Another possible cause of the Great Depression was the unequal distribution of wealth in the United States.

Read More

What Are The Underlying Causes Of The Great Depression

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

What Caused The Great Depression Dbq Essay

726 Words | 3 Pages

The Great Depression was caused by speculation and installment buying, income maldistribution, and overproduction because each of these factors combined made the economy worse before and after the stock market crash, which led to The Great Depression. Speculation and installment buying helped caused The Great Depression because people were buying so much stuff on credit, when

Read More

What Caused The Great Depression Research Paper

780 Words | 4 Pages

There began to be a gradual decline in prices and the stock market ruptured. On October 24, 1929, the infamous “Black Thursday” took place, where stock holders went on a panic selling spree. Things then went from bad to worse, stock prices went down 33 percent. People stopped purchasing goods and business investments decreased after the crash. In the fall of 1930, the first of four major waves

Read More

Causes Of The Great Depression Essay

750 Words | 3 Pages

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.

Read More

More about Great Depression Essay

Related Topics

Open Document