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What Caused The Great Depression

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Have you ever had to do labor work as a child, to help your family pay the bills? The Great Depression is a critical era in which the stock market crashed and caused many people to lose their homes and jobs. The Great Depression was the greatest downfall of the United States economy. It all started when the stock market crashed in 1929 and continued up until 1939. It made people desperate for money, causing people to start doing migrant work. President Franklin D. Roosevelt held programs and projects which were called the New Deal. There were many causes to the great depression such as President Hoover who was in office at the time it all began. People had to travel all around the country looking for job opportunities and a better life, working under poor conditions. …show more content…

They had no rights as african americans. There were two major roles that led to the great depression, such as bank failure and the stock market crash. Throughout the 1920s a long boom took stock prices to peaks never before seen. From 1920 to 1929 stocks quadrupled in value. Many investors became convinced that stocks were legit and borrowed heavily to invest more money in the market. But in 1929, that bubble had burst and stocks just went downhill from there. In 1932 and 1933, they hit rock bottom, stocks decreased about 80% from their highs in the late 1920s. This had pinpoint effects on the economy. Demand for goods declined because people felt poor because of their losses in the stock market. The wall street stock brokers invested a lot in stocks which seemed promising but later came to bite them back.

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Following the end of the First World War, the United States was initially prosperous. In 1929, that prosperous age about-faced into a downward spiral that enveloped the entire country. What was eventually called the Great Depression was essentially caused by four major events. At the start, the stock market was strong and thriving and the population was willing to invest in it. Americans were so confident in the market, in fact, that it was common for them to take out loans to fund their investments.

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THE GREAT DEPRESSION 1929 was the start of the deepest and darkest time for the United States Stock Market and the people of the United States. The Market crash, the loss of American jobs and homes, lead to one of the hardest downfalls in American history. Along with billions of dollars lost due to bad stock trading, over extending on personal credit and the spending of money that had yet to be produced. The American people never stood a chance and in a matter of 10 days the lives of almost everyone changed. In 1928 Herbert Hoover was elected as president.

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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.

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The Great Depression was the period of time after the stock market crash. It was a hard time for many citizens and hit the country hard financially. In the early 1900’s, the stock market was the place for everyone to pour their savings into stocks. Due to this, the stock market quickly expanded, reaching a peak in the August of 1929. Before then, production had already started to slow and unemployment had begun to take ahold of America.

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The stock Market was the cause of The Great Depression The Great Depression started in 1929 and it ended in 1939. It has been the most long lasting economic downturn in the United States. That event caused so much damage. In the book “ The great depression” by David F. Burg (pg. 365) the author lists all the effects, for example, Investors went bankrupt, banks failed, factories closed, farmers lost their farms etc.

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President Herbert Hoover made efforts to try to fix the great depression. Many people disliked him as a president and complained he didn’t even care. However he at least tired to help people recover from the great depression. Some policies he created were the Hoover Moratorium, the Federal Home Loan Bank Act of 1932, and the Great New Deal. Hoover created the Hoover Moratorium to end the war debts however it didn’t help with the economic crisis.

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America had experienced other depressions or “panics,” but none were like the Great Depression. The Great Depression began on October 29, 1929, Black Tuesday, with the stock market crashing. Most people believe that the cause of the Great Depression was the stock market crashing. Although that is what triggered the Great Depression there were many underlying causes that lead up to the stock market crashing. Some of the underlying causes include under-consumption/over-production, uneven distribution of wealth, loose banking and corporate regulations, tariffs policies, and the stock market.

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The Great Depression was caused by speculation and installment buying, income maldistribution, and overproduction because each of these factors combined made the economy worse before and after the stock market crash, which led to The Great Depression. Speculation and installment buying helped caused The Great Depression because people were buying so much stuff on credit, when

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The Great Depression was an exceptionally abhorrent time period in the history of the U.S, and it left thousands without a job and or food to eat. This ghastly event was caused by many things, some of which included overproduction and underconsumption, the inability of banks and people to collect debt, and the stock market crash of October, 1929. The stock market crash was mainly caused by investors who bought shares on margin, and resulted in the value of common stock and shares dropping by almost 40%, resulting in the Great Depression. Buying on margin was essentially a system where instead of paying the whole amount when buying a stock, people paid a fraction of the price, and took a loan with their brokers to pay for the rest.

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The Great Depression and its Causes Some of the biggest causes for The Great Depression were The Stock Market Crash of ’29, Roosevelt’s New Deal, and lastly how bank problems and ‘self-induced’ panic furthered the problem. While these are big causes of The Great Depression, they are not all of them. When researching The Great Depression, one must look beyond the smokescreen of lies. Looking into the first and possibly single biggest cause of The Great Depression, and that is the Stock Market Crash of 1929. On October 28th and 29th of 1929, over 16 million shares were exchanged, and over these two days the Dow Jones lost a total of 381 points (“Stock Market Crash Of 1929”).

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The Great Depression was a time in American History of awful economic suffering. It was the longest lasting economic downfall ever in America. It lasted for approximately ten years, from 1929 to 1939. It began with the stock market crash of October 1929 and ended with the beginning of World War II. Basically, the stock market had reached a significant low during October 1929.

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The Great Depression studded everyone politically. Before the Great Depression, the Federal Reserve tightened credit 5-10%, disabling the ability to liquidate loans. This resulted in a recession that was one of the many causes of the Great Depression (The Editors of Encyclopedia Britannica). The confidence in President Herbert Hoover’s idea of capitalism began to falter (Amadeo). In order to restore prosperity, President Franklin D. Roosevelt put in place the New Deal.

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There were a variety of causes that caused the Great Depression, but the main cause that started it was a decrease in spending. This led to production decrease because manufacturers and merchandisers did not want to have unused items just sitting on the shelves. In October of 1929 the stock market crashed. The United States stock prices had reached levels that could not be justified by sensible predictions of future earnings. The results of this were catastrophic.

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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.

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Nishat kazi (Muniya) 11th grade The Great Depression was one of the worst downturn of economy in the history that took place during the 1930s. It had a catastrophic effect in countries on both rich and poor. Though there are a lot of causes behind the Great Depression,the main three causes were-1.Bank failure 2.Stock market crash 3.laissez faire.

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