Essay on The Causes of the Great Depression - 697 Words

The Causes of The Great Depression History Imagine waking up one morning, only to find out that all your investments and savings are gone. So if your bank that you invested all your money in collapsed, you didn’t get any money back. This is what happened to millions of Americans during the 1930s. This era was called the great depression. The great depression was one of the worst economy issues we have ever had in history. It was a hard time for everyone. The great depression started in 1929 till 1939. Tons of banks closed down and about 9 million savings accounts were lost. Tons of companies and factories went under. About 15 million people were unemployed. There are many causes of the great depression. One main cause was the†¦show more content†¦It got so bad due to a misunderstanding of a slump by American policymakers. This became a problem. In the 1920’s the U.S. economy was booming. The value of stocks were rising and being bought. People were buying tons of stocks. They put as little as ten perce nt in. Then everything started tumbling down and people lost about ten times as much as they put in. Tons of people saw the stocks falling, literally. People were trying to hurry and get rid of their stocks they bought to try and save some of their money. When more and more people were getting rid of their stocks it just made the situation worst. J.P. Morgan tried to save the economy by putting billions of dollars in certain banks. This became the stock market crash. This day, October 24, 1929, became known as Black Tuesday. In the crash, people lost ten times as much as they put in. After all that everyone lost there trust in the economy. Many people wanted to take their money out of the bank. Banks were running out of money. Because of the cash shortage many banks got closed down. Now all the companies are having troubles. With the economy falling companies couldn’t pay their loans off. Many companies had to combine together in order to cover their loans. Companies stopped hiring people and began to lay off people. Because nobody could afford to hire anyone the unemployment rate got extremely high. Prices also rose by companies to try and make some profit off theShow MoreRelatedCauses Of The Great Depression1319 Words   |  6 Pageshaving classic satisfying life concluded when the Great Depression ushered in the negative trend that would impact the U.S. economy in 1929. Therefore, what happened? In this essay, we will discuss what the Great Depression was for the Americans, the causes of the Great Depression, and the U.S.’s recovery from the Great Depression. The Great Depression One of the terrifying times in the U.S. history is the Great Depression. The Great Depression is an economic phenomenon, which according to theRead MoreGreat Depression and Its Causes1256 Words   |  6 PagesThe causes of the Great Depression of the 1920s and 1930s has been argued about for generations. Most people agree on several key topics and that it was the severity and length of time the Depression lasted that was actually the most remarkable. Hoover made many noteworthy attempts to try and solve this crisis, yet in the end it was President Roosevelt and his New Deal, that brought many Americans hope for the future. The first factor in the start of the Depression was the lack of diversityRead MoreCauses of the Great Depression2012 Words   |  9 Pages The causes of the Great Depression in the early 20th century is a matter of active debate between economists. 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People began to fear that the boom was going toRead MoreCauses of the Great Depression Essay1108 Words   |  5 PagesThe United States has experienced recessions about every twenty years (give or take) since the beginning of the Industrial Revolution. Nothing that had happened before was quite this serious, chaotic, or as long lasting as the Great Depression. The crash was felt far beyond those on the trading floors. Speculators who borrowed money from the banks to buy their stocks could not repay the loans because they could not sell stocks, because no one else would buy them. This caused many banks to fail,Read MoreCauses of The Great Depression Essay701 Words   |  3 Pages Imagine a society where over 25% of the population was unemployed. That is what it reached during The Great Depression (â€Å"The Great Depression†). During the depression unemployment rates were the highest they have ever been. It is highly speculated to this day on what exactly caused The Great Depression. Most historians agree it was a chain of events, one after another, that brought our country into chaos. Some events were more impactful than others. These events caused pandemonium amongRead More The Cause of the Great Depression Essay552 Words   |  3 PagesThe Cause of the Great Depression The economic expansion of the 1920’s, with its increased production of goods and high profits, culminated in immense consumer speculation that collapsed with disastrous results in 1929 causing America’s Great Depression. There were a number or contributing factors to the depression, with the largest and most important one being a general loss of confidence in the American economy. The reason it escalated was a general misunderstanding of recessions byRead MoreCauses Of The Great Depression And The Great Recession2292 Words   |  10 Pages1. Examine the causes of the Great Depression of the 1930s and consider what similarities and differences can be drawn with the problems from the financial and economic crisis which began in 2008. Introduction 2007-2009 in America has often been described as the worst economic crisis since the Great Depression in 1929. There was lots of debate whether the economy was slipping back to double dip recession but there is considerable evidence that the economic crisis in 2008 is worse than the crisisRead MoreCauses of the Great Depression Essay651 Words   |  3 PagesIn the 1920s, American economy had a great time. The vast majority of Americans in 1929 foresaw a continuation of the dizzying economic growth that had taken place in most of the decade. However, the prices of stock crested in early September of 1929. The price of stock fell gradually during most of September and early October. On â€Å"Black Tuesday† 29 October 1929, the stock market fell by forty points. After that, a historically great and long economic depression started and lasted until the start ofRead More Causes of the Great Depression Essay743 Words   |  3 PagesCauses of the Great Depression The Great Depression also called Depression of 1929, or Slump of 1929, began in 1929 and lasted until 1939. It was the longest and most severe depression ever experienced by the industrialized world. Though the United States economy had gone into depression six months earlier, the Great Depression may said to have begun with a catastrophic collapse of the stock market prices on the New York Stock Exchange in October 1929 call the Stock Market Crash of 1929.