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The Causative Components Of The Great Depression

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The Great Depression was an incredibly dull time in the historical backdrop of the United States, impacting all the financial assets of the Americans' lifestyle. The Great Depression shattered the financial status of the United States. The newly elected President Roosevelt has been known for sparing the U.S out of the financial turmoil it found itself in from the Great Depression. The causative components of the Great Depression are still up for debate by many students of history and economics. For some individuals, the period decline is credited to the stock market crash of 1929. The Great Depression began in 1929 and lasted until 1939. This economic collapse influenced Western industrialized economies but its effects ranged across different …show more content…

The depression began in the United States, after a fall in stock prices that began around 1929, and became global news with the stock market crash of October 29, 1929 that is known as Black Tuesday. “On Black Thursday, October 24, 1929, the stock market (New York Stock Exchange) fell 34 points, a 9 percent drop for the day. The trading volume was approximately three times the normal daily volume for the first nine months of the year. There was a selling panic. But the series of events leading to the crash actually started before.” (Bierman, Harold) Some economies were able to recuperate by the mid-1930s. However, in numerous nations, the negative impacts of the Great Depression endured until the start of World War II. The crash was the eventual outcome of overproduction and mass leveraged speculation. After the Great War, the United States had their products such as automobiles, refrigerators, cameras tremendously modernized to meet the new nationalized standards, which was very unexpected. As the market was progressively immersed in the late twenties, the industry was confronting a slope. With the industrial boom, a theoretical fever had spread to those of the general public, who had little connotations with the stock market. For individuals to have the ability to purchase shares of what they were influenced is a fast approach to get cash, they would have to take out short-term loans, …show more content…

Many people said that one cause was that the stock prices were too high so the crash was inevitable. The stock market had a hard time stabilizing when such a massive amount of money was borrowed from it. One way to display this would be to look back at old data. “Compare the September 1929 prices with those in November 1929 or, more impressively, with prices in 1932. In 1932 prices were 32 percent of the year-end 1929 prices. They went down.”(Bierman, Harold). As you can see the there was obviously a difference in the prices from September to November from 1929 to

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