Causes Of The Great Depression
In the words of former President Calvin Coolidge in 1932 "In other periods of
depression, it has always been possible to see some things which were solid and
upon which you could base hope, but as the I look about, I now see nothing to give
ground to hope—nothing of man." The amount of sheer poverty and homelessness
that stuck the United States in 1929 through 1939 was incomparable to any other
economic downfall in American history. Ever since these dark days in American
history economists have been studying the events which led up to the sudden
plunge of the stock market in 1929. The amount of unemployed citizens was only to
be solved by the start of World War II, which employed men to fight over seas and
women to help the …show more content…
What was initially a normal recession became an abnormal monetary decline
on October 29, 1929. In one trading day more than 16,410,030 shares were sold in a
single day, sending the stock market into a panic (History.com). It was only two
months after this so called ‘Black Tuesday’ that investors lost a total north of 40
2Swafford
billion dollars (600 Billion in modern day) in assets within two months. One of the
initial causes of The Great Depression began in the summer of 1929 when investors
began to liquidate their holdings in order to pay off their debt being called for. This
scenario is very applicable to modern times in which a bubble was created, leading
to an economic crash when loans can no longer be paid off. In 2008 America was hit
with yet another recession due to the fact the banks were willing to loan money to
nearly any living man, despite their credit or collateral, much like the preceding
years before 1929. Banks were allowing clients to take out loans which were far
beyond their ability to pay off, sending the debtors into panic attempting to pay …show more content…
Lastly, the horrendous agricultural conditions added to the already tough
American society. Throughout the Mississippi Valley and the Midwest bread basket
the lack of rain along side of poor agricultural practice created the infamous dust
bowl read about in The Grapes of Wrath by John Steinbeck. Dust clouds were
rumored to drift as far as New York City during the strong east winds off the plains.
The lack of ideal farming conditions sent the supply of food below average, yet again
causing the delicate principle of supply and demand to fall askew. Although the lack
of food and drastic drought was not the primary cause of The Great Depression, it
largely contributed to the failure of the America economy in the 1930’s.
The crash of the stock market in 1929, the nationwide failure of nearly half
4Swafford
the banks in America, along side the poor agricultural conditions allowed a typical
recession to evolve into The Great Depression. As investors over reacted and
depression, it has always been possible to see some things which were solid and
upon which you could base hope, but as the I look about, I now see nothing to give
ground to hope—nothing of man." The amount of sheer poverty and homelessness
that stuck the United States in 1929 through 1939 was incomparable to any other
economic downfall in American history. Ever since these dark days in American
history economists have been studying the events which led up to the sudden
plunge of the stock market in 1929. The amount of unemployed citizens was only to
be solved by the start of World War II, which employed men to fight over seas and
women to help the …show more content…
What was initially a normal recession became an abnormal monetary decline
on October 29, 1929. In one trading day more than 16,410,030 shares were sold in a
single day, sending the stock market into a panic (History.com). It was only two
months after this so called ‘Black Tuesday’ that investors lost a total north of 40
2Swafford
billion dollars (600 Billion in modern day) in assets within two months. One of the
initial causes of The Great Depression began in the summer of 1929 when investors
began to liquidate their holdings in order to pay off their debt being called for. This
scenario is very applicable to modern times in which a bubble was created, leading
to an economic crash when loans can no longer be paid off. In 2008 America was hit
with yet another recession due to the fact the banks were willing to loan money to
nearly any living man, despite their credit or collateral, much like the preceding
years before 1929. Banks were allowing clients to take out loans which were far
beyond their ability to pay off, sending the debtors into panic attempting to pay …show more content…
Lastly, the horrendous agricultural conditions added to the already tough
American society. Throughout the Mississippi Valley and the Midwest bread basket
the lack of rain along side of poor agricultural practice created the infamous dust
bowl read about in The Grapes of Wrath by John Steinbeck. Dust clouds were
rumored to drift as far as New York City during the strong east winds off the plains.
The lack of ideal farming conditions sent the supply of food below average, yet again
causing the delicate principle of supply and demand to fall askew. Although the lack
of food and drastic drought was not the primary cause of The Great Depression, it
largely contributed to the failure of the America economy in the 1930’s.
The crash of the stock market in 1929, the nationwide failure of nearly half
4Swafford
the banks in America, along side the poor agricultural conditions allowed a typical
recession to evolve into The Great Depression. As investors over reacted and