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Was The Great Depression Really Similar Again Essay

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Is it possible to go through the Great Depression or something very similar again? I believe that it would be very possible to go through it again. Although I don't believe that it would happen the same way it did in 1929. The main cause of the Great Depression in 1929 was the crash of the stock market, which should never happen again because too many people rely on the stock market these days for a source of income and a 401k. When the stock market crashed in 1929 it was because only a small percentage of people invested in the stock market so when prices dropped a little they all tried to pull their money out and panic sold their stocks. This caused the stocks to plummet further and eventually crash. Not only did stock prices crash, but public …show more content…

This is bad because that means that in the future there will be a shortage of people to work jobs once others pass away or retire. If there are fewer people to work with and that have to pay taxes, taxes will have to be raised which would cause the people on the lower end financially to have even less money. Banks are not like they used to be when the Great Depression happened. Many small banks had lent out large portions of their money to the stock market speculation and were practically put out of business overnight when the market crashed. Banks in the 1920s kept all the money inside of a vault there and everyone's money was in it, So when people started taking all their money out of the bank before they closed down because they were scared the bank had no money to stay in business and had to close down. Banks now are much different than back then because most of the money people bring in doesn’t stay there but their money is kept online/ in the bank system. But that doesn’t mean that they can’t still crash and go out of …show more content…

Inflation could be a factor in the Great Depression happening again because it is an increase in prices and a fall in the purchasing value of money, which essentially makes money less valuable. It can hurt the US along with the rest of the world badly because it causes the price of goods to rise but not the income of business owners as much as the price increases are. It would make the economy fluctuate by having an increase in prices but less money to provide to purchase those goods and services. In 1913, the Federal Reserve System or Fed was put in place. The Fed is the central bank of the US and is responsible for “monetary policy, managing the payments system, and banking supervision and regulation” ( St. Louis Fed ). It didn’t do anything to stop the Great Depression because it did not use monetary policy to prevent deflation and the collapse of output and employment. Although the Federal Reserve System is a lot more set up nowadays, this doesn’t mean that they are solely going to be able to prevent another great depression from happening, but they will be a factor. Another issue is the broader digital disruption of the

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As a result, the nation was shaken and terrified. Additionally, it impacted the economic confidence of industries and customers. Leading to the 14 000 000 dollar loss in the stock market (Doc 3). Consequently, a number of businesses, banks, and a other organizations declared bankrupt. In a similar way, the public authority's efforts to become a part of the financial system resulted in more significant harm.

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The immense stock crash in October 1929 was one of the many causes of the Great Depression. Banks were putting an abundant amount of money into the stock market, and could not keep up with the fast demand. The value of our currency dropped, thus leading to us losing more money, and many Americans were unemployed, plus low wages. As a way for America to make a profit, they put taxes on other country's products to protect American industries. American citizens were furious at the banks for losing their money not being able to pay them back.

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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.

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Fortunes disappeared within days and people surrounded the banks in an effort to withdraw their life savings which was often too late causing panic. This caused the political, economic and social organizations in the US to collapse to all-time

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On October 29th 1929, the United States of America fell into an all consuming state of fear. The crash of the stock market and the economic tribulations that rural United Statians were facing resulted in the Great Depression. No matter where one would he or she would encounter a plague of despair and people looking for the same jobs that no longer existed. People left their homes hungry for opportunities but would end up with starving for not only a small sum or money but a morsel of food as well.

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President Roosevelt majorly affected The Great Depression in several ways, specifically closing and reopening the banks. According to “Two Presidents and the Depression” it is written as, “From his studio in the White House, the president explained his actions of the previous week and appealed to all Americans to return their money to the banks; he promised that their money would be safe.” This piece of evidence portrays closing and reopening the banks because it is showing the reason why he did what he did, which was to help regain the country all the money that they lost. Elaborating, it mentions how the president explained what he did and explaining why he did it, specifically returning the money to the banks to then again return it back to the people. This relates to the claim about the economic category created the most change during The Great Depression because closing and reopening the banks gave the people their money back that they originally earned caused the businesses to start again.

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