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What Was The Cause Of The Great Depression

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The Great Depression is one of the biggest and ugly downfalls in American history. The Great Depression had started when the stock market crashed in a big way to where Wall Street just went down in the a panic and a lot of investors went out business because of it. Over the years, all the investments and the consumers had fallen in a deep drought of employment. Companies had lost their workers by the late 1920s. The has reached it lowest point of time in that period of time. The cause of the Great Depression was how a lot of millionaires used their tycoons to cooks to janitors where it just went down in their savings. That’s when the stock market had crashed. A lot of banks had failed during the late 1920s and that is also a reason to why the stock market had crashed in the first place. …show more content…

The confidence of Wall Street was destroyed in there Street markets to where it led the Great Depression. It also crashed when Herbert Hoover was the president during that time. Then, he created the “Hoover bull market” and it went high in there savings in there securities and profits. Billions of dollars were getting drawn from their banks to Wall Street for what was happening to their downfall of money. It was on that day were the real panic of the Great Depression was about to happen. On October 24, a lot of investors were losing a lot of money that rushed them to a salvage point in their time. This day was known as Black Thursday. A lot of banks was closing because of this a lot of banks in their stocks was in panic of how their market had

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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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Buying on credit, overproduction, and income inequality were just some of the leading factors to the great depression. It began when installment buying was introduced people didn’t view debts as shameful and bought things at a faster rate than they could pay. People were also investing a lot in the stock market one day it crashed. October 29, 1929 (now known as black tuesday) was the day the stock market crashed. It caused great panic in America since many peoples entire life savings were lost in one day.

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The Great depression sent it affects all through the world. Though millions of Americans lost their jobs and homes. Soon “Hoovervilles” started to take over all over the country which were shacks of improvised housing for people who lost everything. When F.D.R came into office in 1932 he helped Americans and America start to recover with the passing of many laws and regulations . One change was the creating of the FDIC, which insured the peoples savings stayed in the bank.

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Because the stock market crashed, thousands of individual investors lost their jobs. The decline in the value of assets also greatly strained banks and other financial institutions, especially the ones holding stocks. By 1933, nearly half of America's banks had shut down. Unemployment was going sky high. 15 million people were without jobs.

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The Great Depression was a difficult time in American history. Many families and businesses suffered due to the stock market crash. Despite the stock market crash being a contributor to the Great Depression, the Depression did not happen because of it. There were causes that led up to the crash such as the get rich quick mentality, the Smoot Hawley Tariff, and the bank failures that led to the stock market crash and contributed to the Great Depression. Wall Street was seen as a “money trust” and “a place where insiders fleeced small investors” (Give Me Liberty, Eric Foner, pg 786).

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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.

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Did you know the Great Depression was the deepest and longest economic downturn in the history of the western industrialized world?The lowest point for America where the economy was at a severe downfall. The Great Depression started on October 29,1929, ended in 1939.How America was able to overcome the Great Depression was because of World War II and big government military spending that finally broke the depression’s back (Doc.5). In these hard times for America it; was able to sustain itself over the downslide of falling stock prices and when the stock market crashed. The Great depression was one the most difficult time for Americans where there were people in severe poverty and often jobless. The causes of the Great Depression was speculation,

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The Great Depression was a period in the 1930s where America suffered a major economic crisis. People had trouble having enough money to survive the day, and had to take food shifts. It was a very rough period in our history, and historians have been debating for years over one question: What caused the Great Depression? Some argue it was the banking crisis where people couldn’t pay back their loans, making the banks broke.

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There began to be a gradual decline in prices and the stock market ruptured. On October 24, 1929, the infamous “Black Thursday” took place, where stock holders went on a panic selling spree. Things then went from bad to worse, stock prices went down 33 percent. People stopped purchasing goods and business investments decreased after the crash. In the fall of 1930, the first of four major waves

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The Great Depression was the worst economic downturn in the history, which lasted from 1929 to 1939. It began after the stock market crash of October 1929, which sent Wall Street into a panic and wiped out millions of investors. Spending began to drop, and it caused declines in employment and some companies began to lay off workers. By 1933, the Great Depression reached its lowest point and millions of Americans were unemployed. The 1920s consisted of dramatic social and political change.

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