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What Led Up To The Great Depression

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Before America experienced the golden period of the “roaring twenties”, America faced a time of possibly unequaled financial hardships and mental despair. The stock market crash in 1929 was the dramatic breaking point of the Great Depression. However, the problematic seeds that climaxed up to this point had been planted well before with problems regarding the ill equipped global financial system, overproduction of goods, and uneven wealth distribution. The progression of no national economic planning comes in hand with the speculation and overleverage of malpractices. Laissez- faire, the cautious absence of government regulation, allowed stock markets to have loose protocols. Because none of the presidents attempted to regulate the buying and selling of stocks, the loose regulations permitted investors to buy stocks on margin, as well as manipulate the prices. A major contributing approach towards the Great Depression was the ill equipped global financial system that supported the government to not analyze statistics regarding stock investments, and overproduction of agricultural produce and consumer goods. …show more content…

The boom of new technology resulted in more production to meet the demand. Soon enough, the supply greatly surpassed the demand. As wages remained low and the gap between the rich and poor continued to increase, workers were unable to purchase such luxuries. Subsequently, employers began to lay off workers in high numbers, causing the unemployment rate to skyrocket. The overproductions of goods lead to the unemployment rate reaching a high 25% combined with other factors were roots of the Great

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