What Caused The Great Depression
Causes of the Great Depression
Imagine you live in New York, and wake up and the Morning News tells you that the Ney York Stock Exchange had slowly plummeted over-night. Eventually, you will come to look into your own bank account and see that all of your savings are gone. Not only did the government lose money, citizens lost their own money too. The American people were outraged and knew that that was just the beginning of more disasters to come. The Great Depression of the United States of America, was greatly caused by Stock Market crashes, and bank failures which sooner led to boycotts and new foreign policies across the globe.
The Stock Market Crash of 1929
Black Tuesday had one of the biggest tolls that led to the Great Depression. In hours, the New York stock exchange had lost all of its money gained from that entire year. Over 16.4 million shares were traded, causing the Stock Market to drop by 25%, in just 4 days. This incident had soon to be known as the “Stock Market Crash of 1929”. The U.S Government was extremely quick to think of a way to gain more money back. Eventually the Government invented a way to slowly gather money from other countries, causing the Smoot-Hawley Tariff. …show more content…
In 1930, the Smoot-Hawley Tariff was made. This policy raised the taxes of other foreign countries. Importing companies gained more money by raising the taxes of exporting companies around the world that were giving goods to the U.S. Countries, angered, retaliated against the U.S. and its policy. Although the Government had a way to get money back, the American people needed a way as
Imagine you live in New York, and wake up and the Morning News tells you that the Ney York Stock Exchange had slowly plummeted over-night. Eventually, you will come to look into your own bank account and see that all of your savings are gone. Not only did the government lose money, citizens lost their own money too. The American people were outraged and knew that that was just the beginning of more disasters to come. The Great Depression of the United States of America, was greatly caused by Stock Market crashes, and bank failures which sooner led to boycotts and new foreign policies across the globe.
The Stock Market Crash of 1929
Black Tuesday had one of the biggest tolls that led to the Great Depression. In hours, the New York stock exchange had lost all of its money gained from that entire year. Over 16.4 million shares were traded, causing the Stock Market to drop by 25%, in just 4 days. This incident had soon to be known as the “Stock Market Crash of 1929”. The U.S Government was extremely quick to think of a way to gain more money back. Eventually the Government invented a way to slowly gather money from other countries, causing the Smoot-Hawley Tariff. …show more content…
In 1930, the Smoot-Hawley Tariff was made. This policy raised the taxes of other foreign countries. Importing companies gained more money by raising the taxes of exporting companies around the world that were giving goods to the U.S. Countries, angered, retaliated against the U.S. and its policy. Although the Government had a way to get money back, the American people needed a way as