The Cause And Effects Of The Great Depression

The Great Crash of 1929 brought American to the great depression that was the longest, deepest and the greatest widespread economic depression of the 20th century. Before “Black Tuesday” America’s economic and production was at an all-time high. The prices of the stock exchange continued to increase upward, which created a sense of security related to the profits. There were a few warning signs of disaster, nevertheless, it was not bold enough to overcome the “chatter of the ticker-tape machine”. On October 29, 1929 the stock market had a catastrophic crash, which sent the American economy to swirl downwards. One of the causes of the crash was triggered the British. The British raised interest rates in an effort to bring back investment that was lured away from American
Numerous other foreign investors soon followed, which resulted in 16,410,030 shares of stocks that were sold. Wall Street that was once booming is now replaced by gloom and doom. Numerous stockholders lost billions and suicide rate intensifies. The stock market collapse foreshadowed a business and domestic despair which began the Great Depression. The Great Depression was caused by overproduction of product of farm and factory. The production exceeds the capacity to consume, not enough demands and payments. There was also consumer’s debt with overexpansion of credit since credit gave the means to purchase products an easy terms. However, this caused several consumers to spend beyond their needs and income. About 4 million people in the United States were jobless, by the end of 1930; however that number tripled