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The Great Depression Essay

731 Words3 Pages

Tatum Main
Mrs. Childress
Honors English 2b
May 1st, 2023
The Great Depression and how it changed everything
The Great Depression was a time where unpredicted economic hardships occurred and it's causes were just as unprecedented. The Great Depression was a time of struggling and suffering, but it was a big turning point in history. The Great Depression was one of the most difficult times in the history of America, in just over a decade some of the most unpredictable things occurred. There was an immense economic crisis that left millions of people unemployed, millions of people hungry, and millions of people homeless; although this decade was a tough turning point and changed the Americans perspective on politics, economy, and government. …show more content…

1929. The article ‘Stock Market Crash’ states facts about the early 1920’s. “Throughout the 1920s a long boom took stock prices to peaks never before seen. From 1920 to 1929 stocks more than quadrupled in value. Many investors became convinced that stocks were a sure thing and borrowed heavily to invest more money in the market.” Capital in the United States was represented by stocks. Capital is the tools needed to produce valued things out of raw goods. People can purchase parts of this stock in hope to gain money. In nine years (1920 - 1929) stocks boomed. From 1929 to 1933 the stock market started to decline. It went down 80%. The demands went down and supply went up since people went poor. No one would buy newer stock based on what previously happened. The banks held worthless money from the loans sent to the stock market. The people wanted to withdraw their savings as the banks lost $140 billion dollars. After these banks closed and very few reopened, if they did they were very strict about their rules. Resulting in extreme money decline as well as …show more content…

When people lose their money they realize what they really need to spend it on. Most businesses had to shut down due to this. They didn't have enough money from consumers to conduct business. Manufacturing businesses, Farmers, and mining businesses were hit the hardest out of all businesses. Banks failed as well which made it even harder for businesses to stay open. With banks closed and open banks being nearly bankrupt it became really hard for closed businesses to get loans to reopen or open businesses to get loans to be able to get the stock they need. There were many businesses nationwide that closed, not just banks, manufacturers, farmers, and mining corporations but small businesses, large corporations, and all sizes. The list never

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