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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

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