Preview

The Great Depression was an economic downturn of unprecedented proportions

Good Essays
Open Document
Open Document
756 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
The Great Depression was an economic downturn of unprecedented proportions
The Great Depression was an economic downturn of unprecedented proportions. The stock market crashed, unemployment soared, banks closed their doors, spending.

.
The Great Depression was an economic event of unprecedented dimensions. There had been no downturn of its magnitude or duration before, and there has been none of its like since.
Gross domestic product fell by 27 percent from 1929 to 1933. Simultaneously, prices fell about one-quarter. Gross investment fell by 98 percent. “The impact of this depression was not confined to the United States, although it took the brunt of the effects” (“Great Depression,” 2005). Trade also dropped with an even greater magnitude (“Great Depression,” 2005). Most explanations with regard to the causes of the Great Depression point to weaknesses in credit markets, both internationally and within the United States. Many also argue that the U.S. economy had become too productive. “Rapid technological gains, because of innovations such as electricity and the internal combustion engine, had brought unprecedented productivity gains in agriculture and industry during the 1920s. It has been said that the gains made the economy so productive that consumers could not purchase at that rate of production, which resulted in unsold inventory and widespread layoffs” (“Great Depression,” 2005). It is, however, important to note that in later history, it has been seen that production increases have almost always been accompanied by increased demand by consumers. The stock market crash also contributed to this decline. Stock prices kept an upward trend between 1926 to September 1929 . It then took a downward spiral with a loss of 36 % in value in the following year. (“Great Depression,” 2005).

Declines in consumer spending in 1930 significantly impacted the economy. American households shouldered a large amount of debt during this time, which also doubled as a second income. Much of this included revolving credit tied to the

You May Also Find These Documents Helpful

  • Powerful Essays

    Final Paper Mgt 330

    • 3319 Words
    • 14 Pages

    Great depression was a worldwide economic crisis, and during Great Depression the unemployment rate rose to record high in the United States. In 1930s unemployment rate was soared by 20 percents. Stock price was declined by 89 percents, and industrial production and construction were almost halt. Unemployment was rising and wages fell for those who were working, business failed, millions of people were homeless, banks were out of business. Farmers were caught in a depression because of the collapse of food prices with the loss of exports markets after World War I. Farmers also lost their lands.…

    • 3319 Words
    • 14 Pages
    Powerful Essays
  • Satisfactory Essays

    The Great Depression had a significant impact in history. It was one of the most memorable events in history due to its economic impact and its influence on society. It began as a stock market crash, but soon turned into the deepest economic depression in history. Businesses cut production, consumers reduced purchases, and the stock market continued to decline. It began in 1929, lasting for several years. Its impact can still be seen today, as the country continues to learn of its effects.…

    • 449 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    DBQ Fdr's New Deal

    • 874 Words
    • 4 Pages

    The Great Depression was the worst economic depression the US had ever faced in history. Set in motion after the crash of the stock market in 1929, the Depression led to the dramatic rise in unemployment rates, the vast migration of people, especially farmers, looking for jobs, food shortages, and an increasing hatred towards Hoover’s advocacy for laissez-faire and polices for reform. The years from 1929-1932 reflected a dark era in which Americans were afraid and unsure of what was to come next. With the nomination of Franklin D. Roosevelt as president, a feeling of hope emerged with the thought that this problem could be solved. With FDR’s New Deal, the nation was able to revitalize itself to the way it once was. Although WW II ultimately…

    • 874 Words
    • 4 Pages
    Good Essays
  • Good Essays

    The Great Depression was the largest economic crisis in the history of the United States. During this time there was an outbreak of poverty that swept the nation. There were many economic, social, and political changes during this time. Although this was a difficult time, the government was able to create job opportunities and projects to end the Depression.…

    • 576 Words
    • 3 Pages
    Good Essays
  • Good Essays

    The Great Depression Dbq

    • 451 Words
    • 2 Pages

    The Great Depression was a huge piece of our history here in the United States. It was a time of hope, struggle, and poverty. Some of the vital factors that contributed to the formation of the Great Depression include the rapid purchasing of stocks and the stock market crash, weak banking structure, and the care free spending among wealthy Americans. The Depression was not at all the outcome of one problem, rather multiple problems.…

    • 451 Words
    • 2 Pages
    Good Essays
  • Good Essays

    The Great Depression was one of the most traumatic times of American history. When the stock market crashed in 1929, countless banks were forced to shut down resulting in the loss of investments, business production, and millions of jobs. During the early years of the Great Depression the government did not intervene because they believed that the responsibility lied within the industries. The country was in a dire need of change that they elected a president that promised government intervention. When Franklin D. Roosevelt proposed the New Deal, it introduced diverse programs that focused on relieving the current economic status.…

    • 283 Words
    • 2 Pages
    Good Essays
  • Good Essays

    The Great Depression affected so many people on many different ways. The economy crashed completely, businesses had to shut down, unemployment rates…

    • 1014 Words
    • 5 Pages
    Good Essays
  • Good Essays

    The Great Depression was a time of great suffering in American history. Remarkably it was a time that marked the American people and the country was able to emerge shining and stronger than ever. The Great Depression began in 1929 when in the month of October the stock market crashed and fourteen billion dollars were lost. In just one week, thirty billion dollars were gone. This loss was so monumental because it was ten times the average annual budget of the United States.…

    • 717 Words
    • 3 Pages
    Good Essays
  • Better Essays

    Great Depression Dbq

    • 1432 Words
    • 6 Pages

    The Great Depression was the deepest and longest-lasting economic downturn in the history of the world. After the stock market crash of 1929, the American economy plummeted. This was devastating for many families. Thousands of people were out of their jobs, and left to starve on the streets. Many were forced to simplify their wardrobes, problems in the education systems arose, and the banking system was destroyed. People turned to the government to help them out of their problems. Hoover and FDR worked to pass relief acts that would boost the American economy.…

    • 1432 Words
    • 6 Pages
    Better Essays
  • Good Essays

    The Great Depression was an event that affected everyone from young to old. This severely changed numerous of lives. Many people found themselves out of work and searching for a better life. Funding for education was low and children rather worked. Plus, teenagers and their parents were traveling to search for a new life.…

    • 849 Words
    • 4 Pages
    Good Essays
  • Satisfactory Essays

    The Great Depression was one of the worst economic downturn in the world's history. It started in 1929 when the markets crashed in October. When this happened, Wall Street began to panic. People stopped buying the things that they used too. Which caused unemployment because there were failing companies that were forced to lay off workers. The stock prices started to decline at a rapid rate. Nearly 25% of people were laid off, and banks were failing. [The depression effected the poor and the wealthy]. Also, the farmers were hit hard. The crop prices dropped 60%. Things decreased in prices, and people with jobs were paid very little.…

    • 225 Words
    • 1 Page
    Satisfactory Essays
  • Good Essays

    Starting in the year 1929 and lasting throughout the 1930’s, what would soon be known as The Great Depression, which was a time were many Americans were unemployed, homeless, and even starving to death. Consequently, these events were deprived from phenomenons during the 1920s like the stock market crash, over production, and business failures.…

    • 420 Words
    • 2 Pages
    Good Essays
  • Good Essays

    The Great Depression was a long, severe, recession in the economy market that caused the stock market to crash. Millions of people lost their jobs and banks closed because so many people were in deptt but didn’t have the money to pay the bank back because they were unemployed. Therefore, the banks closed and all of their saved income was gone. The Great Depression had very big impacts on American society both socially and economically.…

    • 410 Words
    • 2 Pages
    Good Essays
  • Good Essays

    The Great Depression changed the way everybody saw and thought of the world. It made people more conservative. It also made people more humble because they knew want real loss…

    • 653 Words
    • 3 Pages
    Good Essays
  • Good Essays

    The Great Depression presented the people of the United States of America Trial upon trial in almost every aspect of life. The Great Depression, while getting its name from the economic cycle, was truly a depression in every sense of the word. Times were tough for almost every single family if not worse. This was exceptionally difficult after the prosperous 20’s that was surely an economic expansion and then boom. The final months of the 1920s were spent in rapid contraction and recession that morphed into a true and well great depression. The dramatic catalyst of The Great Depression was the stock market crash of 1929. This caused an enormous amount of panic amongst the general population as it had been very…

    • 607 Words
    • 3 Pages
    Good Essays