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.
This being the cause of prices concerning stocks and shares to increase, to the point that it was nearly impossible to invest in the market. This being a factor in causing companies to terminate their employees swiftly, and if an individual remained employed, their wage decreased dramatically below the minimum wage. Many counterparts had invested in the stocks with loans or borrowed money, and when the market crashed, their share had been utterly wiped out, leaving them with absolutely no money. Individuals who had their money in banks, became skeptical of the banks and started to withdraw their money, to preserve their remaining savings. This, causing the banks to have to take out loans from bigger banks so that they could pay the individuals their money.
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.
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).
The Great Depression was a difficult time in American history. Many families and businesses suffered due to the stock market crash. Despite the stock market crash being a contributor to the Great Depression, the Depression did not happen because of it. There were causes that led up to the crash such as the get rich quick mentality, the Smoot Hawley Tariff, and the bank failures that led to the stock market crash and contributed to the Great Depression. Wall Street was seen as a “money trust” and “a place where insiders fleeced small investors” (Give Me Liberty, Eric Foner, pg 786).
Bud ,Not Buddy Book Report The Great Depression, started in 1929, one of the most horrible times in human history. Factories closing down, businesses and banks gone, and people losing jobs left and right. It was a bad time in America where most people depended on charities just to survive each passing day. Many stories were made describing what was it like at that time.
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.
According to Document A, the farming industry in America was overproducing goods in an unprecedented amount, they were producing far more goods than they could sell which caused a decrease in demand and prices. The farming industry fell and was left with no money and goods they could not sell because of the overflow of production. As this was happening, The stock market had reached previously unheard-of heights and some investors were taking advantage of the historically low interest rates to purchase stocks, driving up prices even further. According to document B, The Boom in the Stock Market on Wall Street ended in a Crash. Thousands, if not millions of Americans lost all their life savings within days.
As you may know, The Great Depression was one of the worst economic downturns in U.S. history. There are many debates on what caused The Great Depression some examples are, corporate leaders blame the depression on the result of a lack of business confidence in businessmen and how they were reluctant to invest because they feared the government regulations and high taxes. The Hoover administration blamed international economic forces therefore which should stabilize the currency and debt structure. New dealers argued that the depression was due to under consuming and that low wages and high prices had made it difficult to find a product of the international economy and that the lack of determination had led to economic collapse. But I also believe that the main factor of the Great Depression was the stock market crash of 1929.
The stock market crash of 1929 began a time period called The Great Depression. The Great Depression was an era of major unemployment and buisness faliure that lasted until 1939 with the help of President Franklin D. Roosevelt’s New Deal which implemented a framework that could protect American’s interests
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.
What I now know after reading the primary sources is the Great Depression is how much the Stock Market Crash caused the stocks to completely go do down. Also the billions of dollars lost due to many stockholders pulling out their stocks which caused it to crumble since all the money that went in now was taken out but the companies that had the stocks now to have so they couldn’t afford to pay their holders the money. Also it states in the New York Times Stock Market Slump “ It was estimated that 880 issues, on the New York Stock Exchange, lost between $8,000,000,000 and $9,000,000,000” it also stated in The New York Times that “ Trading on the New York Stock Exchange aggregated 16,410,030 shares; on the Curb, 7,096,300 shares were dealt in.
In 1929, the U.S. was hit with the worst economic crisis in the history of the country, the Great Depression. The Great Depression left millions of people unemployed and cost millions their life's savings. The Depression lasted for ten long years for the American people. Since the Great Depression ended, people have studied it, trying to figure out what happened that started it all. The problem was, in fact, the poor economic habits of the people at the time, such as speculation, income maldistribution, and overproduction.
While it is understandable that one would speculate that the stock market crash was the leading cause of The Great Depression, it is also a very over-simplified way of looking at the
In the early 1930s the labor force in countries that were industrialized saw as much as one forth of its workers unable to find work. Conditions were starting to improve by the mid 1930s, however total recovery did not happen until the end of that decade. This was a very difficult time in United States history and around the world, but it could be said that something good came out of it, central banks throughout the world now try to thwart or moderate recessions. It is unclear whether a change like this would have occurred if not for the
