Causes Of The Great Depression

The great depression was at time that for many people still summons up images of American people who believed that hope was lost. The great depression was a period of unprecedented decline in economic activity, which led to major causes. This is known as The Great Depression. It occurred between 1929 and 1939. Although part of the economy had begun to recover by 1936, high unemployment rate persisted until the Second World War. The general consensus is that the great depression was caused by the stock market crash and the stock loses its value. Few days in October 1929 stock prices declines were first seen on October 3rd, 4th and 16th.On Wednesday October 16 1929 stock prices declined for the 3rd time that month. After the economic drops

Times. Another important cause of the great depression is buying margin. During 1920’s margin buying wasn’t controlled by the government, instead it was controlled by brokers interested in their own good. Margin average was 50% of the stock price preceding October 1929. When the crash happened no major brokerage company was bankrupted. As a conclusion the margin buying was likely factor in causing the stock prices to go up. Massachusetts was not the only one in difficult the benefit levels of utilities. The Federal Trade Commission, New York City, and New York State were all difficult the status of open utility regulation. New York Governor (Franklin D. Roosevelt) designated a panel on October 8 to research the regulation of open utilities in the state. The Committee expressed, "this request is liable to have sweeping impacts and may prompt comparable activity in different States." Both the October 17 and October 19 issues of the Times conveyed articles in regards to the New York investigative council. Teacher Bonbright, a Roosevelt representative, portrayed the administrative process as an "awful framework" (October 19, p. 21), which overlooked customers. The Chairman of the Public Service Commission, affirming before the Committee needed more control over utility holding organizations, particularly

Accept that an utility buys an advantage that expenses $1,000,000 and that benefit is financed with 40% stock ($400,000). An utility holding organization claims the utility stock and is likewise financed with 40% stock ($160,000). A second utility holding organization possesses the first and it is financed with 40% stock ($64,000). A venture trust claims the second holding organization's stock and is financed with 40% stock ($25,600). A financial specialist purchases the venture trust's basic stock utilizing 50% edge and putting $12,800 in the stock. In this manner, the $1,000,000 utility resource is financed with $12,800 of value