What Caused The Great Depression Essay
In the 1930s Americans life’s drastically changed for the worst. During this time period an economic crisis occurred putting citizens into a panic. This period of time was known as the Great Depression.
Many problems cause the US to go into this crisis, one of them was the crash of the Stock Market. On October 29, 1929 (Black Thursday) the stocks fell rapidly due to the lack of investors putting money into stocks. The dramatic decline in market did cost the US to lose 10-15 billions dollars in value during this time. But the Stock Market was not the full reason of the United States downfall but it did show the United States economy is not able to undergo its other problems resulting in the economy getting weak.
Another problem that led us into the Great Depression was the high rates of unemployment due to the thousands of bank closures. After the Stock Market crashed Americans were put into a hepatic panic and withdrew all their money from banks nationwide. Also, with many not being able to repay their loans and banks losing lots and lots of money in stocks, banks began to fail. By 1933, 40,000 banks were closed leaving …show more content…
In 1932 Franklin D. Roosevelt won again Herbert Hoover when running for president. FDR came up with 15 acts to help this economic crisis, this is known as “The New Deal.” This gave Americans a stronger sense of stability and security.Some of the deals that were into place was the AAA, CCC, and the FDIC, Also, even though there were many deals were put into place there was a couple that seemed to be the most important to the solution. One of the was the SEC (Securities and Exchange Commission) this was used to regulate the Stock Market and prevent fraud. The main help was to make sure the stock market doesn't crash again. Another was the SSA (Social Security Administration) this was used to help people who are 65+ years of age and are retired, aid if needed. It also gave welfare benefits for those in
Many problems cause the US to go into this crisis, one of them was the crash of the Stock Market. On October 29, 1929 (Black Thursday) the stocks fell rapidly due to the lack of investors putting money into stocks. The dramatic decline in market did cost the US to lose 10-15 billions dollars in value during this time. But the Stock Market was not the full reason of the United States downfall but it did show the United States economy is not able to undergo its other problems resulting in the economy getting weak.
Another problem that led us into the Great Depression was the high rates of unemployment due to the thousands of bank closures. After the Stock Market crashed Americans were put into a hepatic panic and withdrew all their money from banks nationwide. Also, with many not being able to repay their loans and banks losing lots and lots of money in stocks, banks began to fail. By 1933, 40,000 banks were closed leaving …show more content…
In 1932 Franklin D. Roosevelt won again Herbert Hoover when running for president. FDR came up with 15 acts to help this economic crisis, this is known as “The New Deal.” This gave Americans a stronger sense of stability and security.Some of the deals that were into place was the AAA, CCC, and the FDIC, Also, even though there were many deals were put into place there was a couple that seemed to be the most important to the solution. One of the was the SEC (Securities and Exchange Commission) this was used to regulate the Stock Market and prevent fraud. The main help was to make sure the stock market doesn't crash again. Another was the SSA (Social Security Administration) this was used to help people who are 65+ years of age and are retired, aid if needed. It also gave welfare benefits for those in