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Who Is To Blame For The Great Depression

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The Great Depression The Great Depression was the time period in which the deepest and longest-lasting economic downturn in the history of the Western industrialized world took place. The Great Depression started on October 29, 1929 and lasted until 1939. In the United States, the Great Depression began soon after the stock market crashed, which sent the stock market into a panic and also wiped out millions of investors. The loss was very shocking yet it was just a portion of the loss that was in the next 3 years. The big businesses, the wealthy Americans, and banks are to blame for America’s financial standing at the end of 1932. The big businesses made big mistakes that lead to the Great Depression. The big businesses overproduced agricultural …show more content…

By the end of the 1920s, the richest one percent of Americans owned one third of all American wealth, all of this wealth was in the hands of a few, which limited economic growth. The rich Americans had a habit of not spending money, instead they saved. Which wasn’t good because, when the money was spent, the money would have been put back into the economy and would be spread among the middle and lower classes. Also the middle and lower class would purchase goods/services, which would fuel the economy and keep it running. But because the middle class didn’t have enough wealth, the middle class purchased automobiles and household appliances on installment plans, thus causing their debt to increase. Installment plans allowed people to buy things that they could not afford or pay for. The company that owns the product, would give the product to the buyer first, and then every month the customer would have to pay a certain amount of money until the item was paid off. Once the lower and middle class stopped spending money, the limited spending by the one percent of rich Americans was not enough to keep the economy running. Which made the Great Depression take

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The businesses starting to rely on stocks, overproduction, and purchasing of their own stocks led to businesses collapsing and the Great Depression

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During the 1920s, the United States was leading the world in economic growth. However, during Herbert Hoover Presidency the United States experienced the largest and longest economic crisis in history, which was referred to as the Great Depression. There were many explanations and arguments to what caused the Great Depression to take place. Some economists argued that the fall back of the agricultural sector contributed to the Great Depression. Some blamed the decrease in taxes and absent of government regulations, which supported the belief that markets were self-regulating.

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This adversity was soon overcome by the rise of a new system in America by name of Instalment Buying. This system allowed people to buy products that they would normally be unable to buy. Banks would buy products for people on the condition that the people would pay the bank back in payments over a course of time (Doc 6). This system was the the second cause of The Great Depression after income inequality because if people became unable to pay the bank its loans back, millions of dollars would simply disappear. That was exactly what happened on October 29, 1929 (Doc

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To begin, the Great Depression took a great toll on the typical American man. Many got fired from their jobs causing unemployment. It was almost impossible to get another job so they were stuck living with no money at all. Not having money caused most men to struggle with bills. Because they couldn’t pay bills they went into debt.

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The American people were relying heavily upon credit, and businesses were busy producing too many goods. The Great Depression is the result of many occurrences that weakened the economy in different ways, the three main

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The Great Depression was an enormous economic downfall in the history of the United States and was also a very hard time for many Americans. People had lost jobs, markets went bad, banks had shut down, and unemployment rate has gone up. It had lasted from 1929-1939. During the next several years, buyer spending and investment had dropped, causing a decline in industrial output and raising the unemployment level. It began with the stock market crash on October 29 1929, which had lost millions of investors, markets had lost $30 billion dollars in two days, making it ten times more than the annual budget the U.S had spent for WWI, and prices were dropping until the end of November.

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Farmers and manufacturers could not do their jobs when they kept losing money by doing their jobs. The more they spent on items or food, the more their business suffered. The Great Depression was a lose lose situation for factories and farms since they lost money by overproducing and by dropping prices to fix the

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Now the rich people couldn’t even buy the luxury things they used to before like a 35,000 boat (Doc. 8) because they now had to precisely manage their businesses so they wouldn’t fall into this bottomless pit. Not many faced this problem though because the rich were scarce in this time period. Only two percent of the US’s population of families was making over ten thousand dollars a year (Doc. 9). All-in-all overproduction was a really big cause of the Great Depression but it didn’t have a biggest negative

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The Great Depression was a complex event caused by a variety of factors. The six factors of the Run on the Banks, the Stock Market crash, the uneven distribution of wealth, problems for business and industry, problems for farmers, and the overuse of credit all played a role in the start of the Great Depression. All of these factors were an important factor in helping start the Great Depression. However, the overuse of credit was the most important factor of them all because it led to people relying on loans, too many payments for the consumer to adequately keep up with, and the economy eventually drying up once the influx of money stopped.

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Since people bought everything they could afford through this method, they stopped buying on everything else and purchases slowed throughout (Doc 10). Installment buying kept people on debt which caused most to stop purchasing on other material. The halt of purchases allowed the economy to fall into a pit. Everyone thought it was necessary to reduce purchases on the Installment Plan because the cutback in buying would “sap the whole economy” (Doc

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In brief, the Great Depression started in 1929. The Great Depression was one of the major disasters of the modern era, the worst economic disaster in history. The Depression had to do with the stock market crash. Americans were were in a cycle. Americans bought goods, the companies gained money, the companies shared less with employees, companies bought stock, employees couldn’t buy products, companies made less money because the Americans couldn’t afford anything.

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The Great Depression was a worldwide economic downturn that began in 1929 and lasted until 1939. It was one of the most severe and longest lasting depressions ever and significantly impacted the lives of millions of Americans. It was an extremely hard time for many, as factories were shut down, farms and homes were lost to foreclosure, mills and mines were abandoned, and people went hungry. The resulting lower incomes meant the further inability of the people to spend or to save their way out of the crisis. The New Deal, with multiple programs assembled by President Franklin D. Roosevelt, included new constraints and safeguards on the banking industry and efforts to re-inflate the economy after prices had fallen sharply.

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The Great Depression The Great Depression had multiple causes and forced the United States into many problems in the workforce, schooling, and home life. In the 1920’s, the United States switched to consumer goods which caused an increase in the amount of goods people were buying. Due to people making more purchases, the economy grew stronger. The stock market also began to grow and get stronger because of people, corporations, and banks investing money in stocks.

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The Great Depression was a severe economic downturn in the United States lasting from 1929 to 1939. During the time of the Great Depression, stock prices plummeted, and unemployment had risen. Since millions of individuals lost their jobs, poverty and homelessness became so widespread as investors lost significant amounts of money resulting in a widespread panic and a decline in consumer spending. Because of this, the agricultural sector also suffered due to falling crop prices, leaving many struggling to meet basic needs. Although this period caused an economic downturn and unemployment, several ideas and developments such as New Deal Programs, labor movements, technological advancements, and social security.

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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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