What Caused The Great Depression Essay
The Causes of the Great Depression
The Great Depression was a rough time in history for the U.S. in the 1930’s. Poverty was everywhere during this time, people were losing everything from homes to cars to personal belongings. Jobs were very scarce, just to get one you had to stand outside of a factory or an establishment and the owners will pick a certain amount of people to go work. Banks were failing and were losing money rapidly, people who had money in the bank went to go and take it out their money but their accounts were empty.(the market crashes) There were many causes to the Great Depression. Life during this October 24, 1929. That’s when traders sold 12.9 billion shares of stock in one day. It was triple the usual amount.(amedeo) It was boom time for the stock holder, stock prices soared to record levels. Millionaires were made overnight.(the market crashes) The stock market was the scene of NYC where everyone from millionaires tycoons to cooks and janitors put all their savings into stocks, the stock expanded and reached it’s peak.(history.com) Stock prices began to rise and by the fall of that year stocks had reached stratospheric. On October …show more content…
29 1929, as nervous investors began selling overpriced shares en masse, over the next four days, stock prices dropped 23%.(amedeo) Millions of shares ended up worthless, and those investors who had bought stock “on margin” were wiped out completely.(the market crashes) Another reason for the Great Depression was bank failure.
According to Ben Bernanke, the past chairman of the federal reserve, the Central Bank helped create the depression. Nine thousand banks failed during the months following the crash. Banks operated without guarantees to their customers, creating a climate of panic when times got tough.(amedeo) Some investors even lost confidence in the solvency of their banks. A few regulations were placed on banks and they lent money to those who speculated recklessly in stocks. Once the stock market crashed, fearful that banks would fail millions of americans began to withdraw their money. (the great depression causes)In the fall of 1930, the first four waves on banking panics began. Bank runs swept the U.S. again in spring of 1931 and the fall of 1932.
(history.com)
Over the next several years, consumer spending and investments dropped. Many ended up homeless or “hobos”. Thousands of unemployed workers looked for work in call. By then, unemployment had risen from 3% to 25% of the nation’s workforce. (Amedeo) Wages for those who still had jobs fell 42%. (The market crashes) The richest one percent of Americans owned over a third of all american assets. The wealthy tended to save money, the middle class americans had money already stretched their debt capacities by purchasing automobiles and household appliances or installment plans. When president Hoover was inaugurated, the American economy was a house of cards. The economy shrank with each successive year of his presidency, unable to provide the proper relief from hard times, his popularity decresed. His minimalist approached as more and more americans lost their jobs (the market crashes)
There were many causes of the great depression, some worse than others. This time of history is pretty cool to learn about, people think it won’t happen again. Do you think we would be able to get through it if it happened again?
The Great Depression was a rough time in history for the U.S. in the 1930’s. Poverty was everywhere during this time, people were losing everything from homes to cars to personal belongings. Jobs were very scarce, just to get one you had to stand outside of a factory or an establishment and the owners will pick a certain amount of people to go work. Banks were failing and were losing money rapidly, people who had money in the bank went to go and take it out their money but their accounts were empty.(the market crashes) There were many causes to the Great Depression. Life during this October 24, 1929. That’s when traders sold 12.9 billion shares of stock in one day. It was triple the usual amount.(amedeo) It was boom time for the stock holder, stock prices soared to record levels. Millionaires were made overnight.(the market crashes) The stock market was the scene of NYC where everyone from millionaires tycoons to cooks and janitors put all their savings into stocks, the stock expanded and reached it’s peak.(history.com) Stock prices began to rise and by the fall of that year stocks had reached stratospheric. On October …show more content…
29 1929, as nervous investors began selling overpriced shares en masse, over the next four days, stock prices dropped 23%.(amedeo) Millions of shares ended up worthless, and those investors who had bought stock “on margin” were wiped out completely.(the market crashes) Another reason for the Great Depression was bank failure.
According to Ben Bernanke, the past chairman of the federal reserve, the Central Bank helped create the depression. Nine thousand banks failed during the months following the crash. Banks operated without guarantees to their customers, creating a climate of panic when times got tough.(amedeo) Some investors even lost confidence in the solvency of their banks. A few regulations were placed on banks and they lent money to those who speculated recklessly in stocks. Once the stock market crashed, fearful that banks would fail millions of americans began to withdraw their money. (the great depression causes)In the fall of 1930, the first four waves on banking panics began. Bank runs swept the U.S. again in spring of 1931 and the fall of 1932.
(history.com)
Over the next several years, consumer spending and investments dropped. Many ended up homeless or “hobos”. Thousands of unemployed workers looked for work in call. By then, unemployment had risen from 3% to 25% of the nation’s workforce. (Amedeo) Wages for those who still had jobs fell 42%. (The market crashes) The richest one percent of Americans owned over a third of all american assets. The wealthy tended to save money, the middle class americans had money already stretched their debt capacities by purchasing automobiles and household appliances or installment plans. When president Hoover was inaugurated, the American economy was a house of cards. The economy shrank with each successive year of his presidency, unable to provide the proper relief from hard times, his popularity decresed. His minimalist approached as more and more americans lost their jobs (the market crashes)
There were many causes of the great depression, some worse than others. This time of history is pretty cool to learn about, people think it won’t happen again. Do you think we would be able to get through it if it happened again?