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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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Due to the stock market crash, families became unable to pay for anything, allowing for the Great Depression

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Which lead people to gain money and mortgages that they couldn’t afford causing steep amounts of debt. With low levels of employment it made it far much more difficult to pay off their debts(Document

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Consumers’ demands for goods were dropping in the tight economy, together with employers unable to borrow money from banks to pay their workers lead to businesses laying off more and more workers to cut costs. The vastly unemployed working class of the country could not afford to buy goods that would have fueled businesses, so inventories continue to build up and prices dropped even further, killing more

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People were working so much it affected their health this system of stretched hours for little people let unemployment continue. Unemployment is a significant part of the great depression. According to document K 60 percent of people lived under the poverty line during the depression. Part of the reason for all the poverty was because there was a huge gap between the rich and the poor. Most people during this era needed help from the top percentage of wealthy people but they didn't receive help due to income maldistribution.

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History). As corporate profits increased, companies hired additional factory workers to keep up with the demand of production. Unemployment at this time remained very low, averaging around 3 percent. In turn, low unemployment slowed the growth of organized labor. Union membership dropped as employers expanded to welfare capitalism programs.

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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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One of the major economic causes of the Great Depression was a long-term unequal distribution of wealth. John Galbraith, a present-day economist, explains the problem of this maldistribution in his article, “What Caused the Depression?” by saying, “This highly unequal distribution of income meant that the economy was dependent on a high level of investment or a high level of luxury consumer spending or both.” Simply put, workers didn’t experience the increase in wages and profit that management did, which resulted in a growing gap between the rich and the poor, and an economic reliance on the rich. As Galbraith states, the economy was dependent on investment and spending, and when the rich were pessimistic due to a bear market or weren't spending their money, the economy was severely damaged and weakened.

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This loss of profit caused companies to lay off workers and lower wages. Lower wages contributed to further low products demands. This was a cycle which kept furthering the

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severe downfall of the American economy in the 1930’s known as the Great Depression was the result of speculation and installment buying, income maldistribution, and overproduction throughout America. After the roaring 20’s, speculation and installment buying drastically increased

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This also caused people to lose money and investments which in turn, was hurting the economy. Some of the economic factors that led to

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The Great Depression was a period of severe economic recession that flogged the American people. It was primarily caused by the overproduction of goods and the massive unequal distribution of wealth. America during the years leading up to the depression had an abundance of production coming off the recent World War, but since wages hadn’t increased, no one was able to buy the products. Also, by 1927, nearly forty percent of all the nations wealth was controlled by the top five percent, and this caused an extremely unstable economy. Similarly, the failure of the Hawley-Smoot Tariff and the closing of banks were both minor causes of the Great Depression.

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This is what led to the rising percentage of unemployed people, and the drop of 8.7 million employed people in 1929. By 1933, when the Great Depression was at its peak, 13-15 million Americans had been laid off. Along with this, almost half of the country’s

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The American stock market during The Great Depression, had been booming regularly upward for almost a decade; crashed, revealing the country into its most severe economic downturn yet. Speculators lost their shirts, had bank fails, the nation’s money supply go lower; and companies went bankrupt and began to fire their workers in large gatherings. By 1932, one of the bleakest years of the Great Depression, at least one-quarter of the American workforce was unemployed. When President Franklin Roosevelt took office in 1933, he quickly maintained the economy and provided jobs and support to the people who were suffering. About eight years later, the government came up with a series of momentary programs, known as the New Deal, that intended to

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The Great Depression was a very bad stock market crash that happened on Black Tuesday of October 29, 1929, and happened to end just about twelve years later which was just about on December 7, 1941. The great stock market crash is known to actually be considered to really start on October 24, 1929, a few days before the crash really went downhill. It actually happens to be known as the worst stock market crash to ever happen in history and even to present day. The Great Depression was a very long, suffering, and economically bad time for the people of the United States of America. It is said that it took twenty-two years to finally recover fully from the stock market crash, which was until the year of 1954.

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Buy locally. If you know the neighborhood well, you'll be able to sell it faster. It will also let you keep an eye on your property, which gives you much needed control. The best way to control your real estate investment is to live nearby so you can manage things on your own. Play nice with others.

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