ipl-logo

What Caused The Great Depression Essay

1269 Words6 Pages

What has to happen to cause a Depression?
The Depression started on October 29th, 1929, and ended in 1941. On the first day of the Depression, the New York Stock Exchange dropped tremendously due to several things. When people tried to pull their money from the bank, they couldn’t get any money back since the banks were heavily invested in the Market. Many, many, many people lost a lot of money. The day was called Black Tuesday, which marked the first day of the Dpression. The Great Depression changed the U.S. and the people forever from that day on.
What caused the Depression? Firstly, the Depression was caused due to an abundant amount of things. One of the main reasons was the collapse of World Trade which the Smoot-Hawley Tariff caused. The Tariff was made to protect U.S. farmers and businesses from competitors from other countries. Senator Reed Smoot and Representative Willis C. Hawley brought the tariff to life. (S# Benson, Sonia et al.)Without World Trade, prices of goods within America would skyrocket, making it unaffordable for anyone but the first class. This would cause overproduction, bank failures, and a loss of jobs nationwide.
In addition, there were many things that …show more content…

out of the low economy, so they passed an act to stimulate it. “ The government also passed legislation such as the Securities Act of 1933 and the Securities Exchange Act of 1934 to regulate the stock market and protect investors. The Social Security of 1935 created a safety net for the elderly and the unemployed. Programs like the Works Progress Administration and the Civilian Conservation Corps provided employment opportunities for millions of Americans.”(S# Adam Augustyn) These acts slowly got the U.S. back on its feet but never fully. The shows gave millions of people jobs to feed their families and provide shelter. Although the actions didn’t fully recover the U.S. economy, they gave a lot of people stable

Show More
Related
1380 Words | 6 Pages

There was not one single reason that the Great Depression occurred, it was a combination of things. Some of the reasons it occurred include the agricultural depression, banks closing, and stocks dropping dramatically. The Great Depression began in the United States after stock prices dropped dramatically, which took place on October 29, 1929. This day became known as Black Tuesday. Every person in society had to endure the devastating effects of the Great Depression.

Read More
699 Words | 3 Pages

Some might be wondering, what caused the Great Depression? Well, the Great Depression arrived in 1929. American citizens were out of work and didn’t want the government's “charity”. Stock market crashes, supply and demand, and contractions are some of the causes that can be found throughout the Depression.

Read More
1177 Words | 5 Pages

The result from that is that people were getting laid off left and right so the company could still make money once again. Now the people were in debt, still buying things on installment, but unemployed. “There was no apparent way of checking this downward spiral after it had been set in motion.” (Doc. G). A lot of people didn't see anything like this coming so they were so prone to stuff like this, because they were spending money and making mistakes like overproduction.

Read More
775 Words | 4 Pages

The Great Depression started in 1929-1939 and lasted for a decade. The cause of the Great Depression was the market crash. Americans were eager to get rich quickly so they started to buy stocks on margin but the plan backfired. Investors began to worry that the stock prices would fall so they began to sell off their stocks. Those who lent money depended to repay their loans.

Read More
1131 Words | 5 Pages

The Great Depression occured October 29, 1929. The stock market crashed. The value of stocks plummeted $14 billion dollars, also known as “Black Tuesday.” There were many causes of the Great Depression such as, unhealthy corporate and banking structures, unsound foreign trade policy (Hawley- Smoot Tariff Act), economic misinformation, unequal distribution of income, and supply-side economics. Capitalism did not self-reform and was not a dependable system for majority of people.

Read More
676 Words | 3 Pages

These are just five of the fifteen plus acts passed by FDR and Congress that greatly helped get the economy back on track. Truthfully, however, we did not get out of the Great Depression until World War II

Read More
1501 Words | 7 Pages

There were many factors that led up to the depression. First of all, banks were making loans that were never paid back. When the businesses that loans were made to ran short on money, similarly, the banks did too. Banks across America went bankrupt, causing them to close. Every account in the banks that closed was abandoned.

Read More
692 Words | 3 Pages

What Caused the Great Depression? The Great Depression was a devastating tragedy that changed our economy. In the U.S, the Great Depression shortly happened after the stock market crash in 1929. This sent Wall Street into a great panic and wiped out millions of investors.

Read More
997 Words | 4 Pages

Question 1: What caused the Great Depression? Answer: While the immediate trigger of the Great Depression was when the Stock Market crashed on October 9, 1929 (“Black Tuesday”), there were other underlying issues that attributed to the weakness in the U.S. economy. Other factors: Overproduction in industry, “by 1920 the booming construction and automobile industries began to lose vitality as demand sagged. In fact, increases in consumer spending for all goods and services slowed to a lethargic 1.5 percent for 1928 – 1929.”

Read More
1384 Words | 6 Pages

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.

Read More
2796 Words | 12 Pages

The Great Depression was a period of economic hardship in the United States from 1929 to 1939. During this period, the economy experienced a sharp decline, resulting in widespread unemployment, poverty, and a drop in the standard of living for millions of Americans. The causes of the Great Depression are complex and varied, but some of the most commonly cited include the stock market crash of 1929, a lack of consumer spending, and a decrease in investment from businesses. The Great Depression had a significant impact on the American people.

Read More
585 Words | 3 Pages

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.

Read More
726 Words | 3 Pages

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

Read More
780 Words | 4 Pages

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.

Read More
750 Words | 3 Pages

The first cause of Great Depression was bank failure. It was one of the main causes of the Great Depression. Throughout the 1930s over 9000 banks failed. In 1920s there were a lot of banks.

Read More

More about What Caused The Great Depression Essay

Related Topics

Open Document