recession. Its kickoff was “Black Thursday‚" October 24‚ 1929 when traders sold 12.9 million shares of stock in one day‚ tripling the usual figures. Over the next few days‚ stock prices fell 23 percent causing the famed “Stock Market crash” which sent Wall Street into a panic and wiped out millions of investors. However‚ it is far too simplistic to view the stock market crash as the single cause of the Great Depression. A healthy economy can recover from such a contraction. Long-term underlying causes
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The Great Depression was triggered by the Wall Street Crash of October 1929. It meant that companies throughout Germany went bankrupt and workers were laid off in their millions. Unemployment affected nearly every German family (by 1929 1‚320‚000 were unemployed) meaning that the public was in a state of distress and wanted change desperately. This gave Hitler an opportunity to put his message across and take advantage of Germany’s desperation. He manipulated the ruling elite (who thought that they
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years‚ from 1929-1939‚ which is the longest and widest depression in western history. A depression in economics is‚ “A sustained‚ long-term downturn in economic activity in one or more economies.” -According to wikipedia. On October 29‚ 1929‚ Wall Street crashed which led onto more than 10 years of The Great Depression. This day was called‚ “Black Tuesday”. Black Tuesday was caused by consumers getting scared
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continue for some time. The Great Depression was one of the most severe depressions in modern times. A depression can be situational‚ regional or even global. The Great Depression is considered to have begun in 1929 after the stock market crash in Wall Street. 8 The effects of this depression were felt around the entire world. This caused a ripple effect onto the rest of the world due to the large dependence on the American economy. Australia had already been in a bad economic situation with high government
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The Great Depression in the United States brought an end to a long era of economic expansion and social progress which had been in full bloom since the 1890s (Mitchell 1947). There had been monetary recessions in 1907‚ 1913 and 1921‚ but these reversals were never severe enough or long enough to shake the deeply rooted confidence in the American economic system or to generate any widespread national discontent. Many history books tell of the depression of the ’30s; they often begin with the stock
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shambles. Unemployment was at an unprecedented high and poverty ran rampant throughout all races and social classes. With many Americans investing all of their finances into the stock market‚ its crash led to the crushing of people’s livelihoods. Wall Street was the center of life of the country and with it crippled‚ all other aspects of life fell apart consequently. Unemployment reached over 25% and there was no work to be found. Almost no money flowing in and in some cases “there were whole towns
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stock market bubble finally burst‚ as investors began dumping shares. A total of 12.9 million shares were traded that day‚ known as “Black Thursday.” Five days later‚ on “Black Tuesday” about 16 million shares were traded after more panic swept Wall Street. Millions of shares ended up worthless. Those investors who had bought stocks “on margin” (with borrowed money) were wiped out completely. The downturn in spending and investment led factories and other businesses to slow down production and construction
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ECO2013 "A short history of the Great Depression‚ from the stock market crash of 1929 to World War II" The great depression was a worldwide event characterized by an economic slum which spanned North America‚ Europe and other industrialized countries from 1929 to 1939. The incident sparked a catastrophic crash of the stock market on the New York stock exchange in America during October 1929‚ while the effects lingered‚ as stocks continued to fall dramatically for the next three years until
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fluctuations in market prices‚ as oppose to the fairest method of reaping profits through long term capital gain‚ dividends earned or accrued interest. The stock market was open to other forces of manipulation as well. Industrialist‚ bankers‚ and Wall Street tycoons manipulated the media to influence the public to purchase stocks that they would immediately sale once market prices peaked. This tactic would leave the unknowing public to suffer serious financial losses. It was the culmination of no market
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worth roughly $185 billion today‚ were lost. The stock market dropped 25% and lost another $30 billion‚ worth roughly $1.3 trillion today‚ over the next four days. The stock market reached its lowest point on November 13th‚ 1929. In addition to the Wall Street Crash‚ banks all over the country began to fail. Deposits were uninsured‚ so that once the bank failed‚ all the money in it would be lost. Families who lost everything were faced with problems that included homelessness and poverty. Surviving banks
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