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Great Depression Essay

1114 Words5 Pages

What was living like during the Great Depression? Many people consider the Great Depression to be one of the most severe financial disasters in modern history. However, one of the factors was Stock market speculation.The stock market was thriving in the 1920s, and many people invested substantially in stocks For example, Overproduction and underconsumption made many industries create more items than people could afford to purchase during the Great Depression. This resulted in a product overuse, which resulted in layoffs and decreased demand for goods and services. Many banks and other financial institutions failed as a result of banking and financial system failures during the Great Depression, generating widespread panic and a loss of faith …show more content…

It wasn't until the New Deal policies that the government accepted more aggressive measures to stimulate the economy and provide relief to those affected. After the stock market crashed in October 1929, it triggered a global economic crisis, and as the Dust Bowl increased the number of agricultural foreclosures, unemployment reached 20% by 1933. The stock market saw a decrease in values on October 24, 1929, known as Black Thursday, forcing investors to panic and sell their stocks. This was followed by another turn on October 28, known as "Black Monday," and another on October 29, known as "Black Tuesday." The economic collapse destroyed billions of dollars in wealth and threw the economy into crisis. Banks struggled, businesses went bankrupt, and unemployment skyrocketed. The Great Depression had a profound impact for the United States and the rest of the world, and the economy took years to recover. (History.com, 17 May …show more content…

Banks that suffered include Bank of the United States, Bank of America, First National Bank of New York, and others. The Great Depression, on the other hand, resulted in the failure of thousands of banks and a wave of bank runs, undermining public trust in the financial system. As a result, additional laws and protections were put in place to protect the banking industry and prevent another financial disaster. During the 1930s, 9,000 banks failed around the world. It is estimated that 4,000 banks failed in 1933 alone. Investors have suffered a $140 billion loss as a result of bank failures in 1933. (B. Ganzel,

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