Causes of the Great Depression Essay

The Great Depression started in 1929 and lasted up until 1939. It happens to be the worst economic downturn for the United States and the the rest of the world. It caused companies and corporations to eventually go bankrupt as well as workers to be laid off. Another effect of The Great Depression is that factory production was reduced, and the banks started to shut down. In the lowest point of The Great Depression in 1933 nearly 15 million workers in America were unemployed and one half of the banks started shutting down.

Also that sales of vegetables and fruits went to bankruptcies, also a president did not want anyone to enter their

The “Roaring 20s” was a time of joy and excitement. Despite the prohibition law that banned all alcohol, America was at its peak. The first radio commercial had been broadcasted, Babe Ruth had hit 60 home runs, and almost everybody was dancing the Charleston. Nobody expected that such a “grand” era would lead to one of America’s worst economic downfalls, known as the Great Depression. How could America’s peak lead to such a dreadful economic trough? Most people probably think that the stock market crash of 1929 is the only cause of the Great Depression, but in fact, several factors had contributed to the Great Depression. The Great Depression was caused by speculation and installment buying, international payment problems, and uneven income distribution.

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 by American policymakers of the time.

Agriculture was the worst form in American economy. The recession during 1920-1925 was hit hard and farmers were still recovering from that made it worse because the mortgage experience throughout the war years and all the farming equipment was so expensive. Farmers were not making enough money since the prices were falling, they had to risk closing down. Textiles, mining, railroad and lumbering industry was also affected. Textiles industry suffered from the decreasing request and large amounts of excess in clothes made. Railroad industry wasn’t making enough revenue because of the loss of passengers. Mining and lumbering industries were making more than what was being sold.

Since the beginning of the Industrial Revolution early in the nineteenth century the United States ad experienced recessions or panics at least every twenty years. But none was as severe or lasted as long as the Great Depression. Only as the economy shifted toward a war mobilization in the late 1930s did the grip of the depression finally ease.

In 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 “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 of the Second World War. The three causes of the Great Depression are installment buying, uneven distribution of wealth and the irrational behavior in the stock market.

The United States (U.S) experienced its worst depression for roughly 10 years after a tragic Tuesday in 1929. The roaring 20’s was abruptly halted as millions of people across the country lost everything they owned in just a single short day. Black Tuesday, as this day is referred to in history, was the day that triggered the Great Depression and caused one of the worst economic collapses ever seen (Lecture Notes, March 30, 2016). Tuesday October 29, 1929 will be a day etched in people’s minds forever. Since this day’s aftermath caused widespread devastation throughout the country, Black Tuesday is the single most important event that occurred in the U.S between World War I and World War II.

Prices for goods fell as farmers grew too much crops and livestock more than the country needed at that time. Of course when, “at least one quarter of the American workforce was

Many people think that the Great Depression was caused solely by the stock market crash. Anybody who tells you this probably didn’t pass U.S. History in high school. The fact is, the Great Depression was caused many different factors. Four of which were overproduction, uneven distribution of wealth, protective tariffs, and the four “sick industries” of the 1920’s.

Many people speculate that the stock market crash of 1929 was the main cause of The Great Depression. In fact, The Great Depression was caused by a series of factors, and the effects of the depression were felt for many years after the stock market crash of 1929. By looking at the stock market crash of 1929, bank failures, reduction of purchasing, American economic policy with Europe, and drought conditions, it becomes apparent that The Great Depression was caused by more than just the stock market crash. The effects were detrimental beyond the financial crisis experienced during this time period.

There are various factors that led to the Great Depression. To begin, the lack of bank regulation was a big factor. The Federal Reserve Act which made banks have money on reserve, was not enforced. Another big factor was easy credit, Easy credit made it easy for people to get money out the bank without having the money to pay it back. Furthermore, the reduction in purchasing across the board can easily be said to be another key factor. With the stock market being down many people within every social class stop purchasing items. Which would cause a decreased not only the number of items being purchased but also the loss of people jobs. Many people had thing on layaway, so usually they would just pay for it monthly. However once they lost their

Before the Great Depression, the United States was facing the era called "The Roaring Twenties." This was the era of when the nation's wealth doubled. People and banks invested a tremendous amount of money. The stock market became very popular and was a way for people to make a profit, like buying low and selling high. The system seemed to be working as people were buying goods that they did not have the money to pay for. On October 24th ,1929 a stock market crashed in New York City which began "The Great Depression." Americans began to panic and a bank run occurred when a large amount of the banks customers withdrew cash from their accounts. Unfortunately, the banks did not have the money to fund the people. A hundred thousand people became

“A guy needs somebody to be near him. A guy goes nuts if he ain't got nobody. Don't make no difference who the guy is, long’s he's with you. I tell ya, a guy gets too lonely an’ he gets sick” (Steinbeck 72-73). The 1930’s were a time of unrest and poverty, for on October 29, 1929, the stock market crashed- causing billions of dollars to be lost. This epidemic was the start of a downward spiral, leading into what would be “the worst economic downturn in the history of the industrialized world”, known to many as, “The Great Depression”. Unfortunately for the people of that time, the depression lasted until 1939, leaving most of the world in an economic strain for at least ten years. Because of this stock market crash, many Americans were left unemployed; and people had to find jobs anywhere someone would take them. Many of the unemployed people resorted to migrant working: going from job to job, traveling to find work. This was considered one of the loneliest jobs, since you weren't in a permanent place, it was hard to get close to others. Most of the time, migrant workers would travel alone, less mouths to feed, less people to look after. Loneliness wasn't contained to simply migrant workers, however, for discrimination was very present, and left many feeling alone, or of lesser importance to those discriminated against. The theme of loneliness is presented in the novella Of Mice and Men through the isolation subjected to Candy, Crooks, and Curley’s wife.

The American economic crash of 1929 spiraled into disaster leading into the Great Depression of the 1930s. What caused the Great Depression has been an ongoing debate where economists, historians and even politicians cant agree on. One of the causes argued is the overproduction of goods by American manufactures. This can be seen as accurate to an extent however many arguments have been put forward to counteract this. Economists such as Milton Friedman and Anna Schwartz, historians such as Michael Bernstein and perspectives from Roosevelt's and Hoover's Government all portray different cause of the Great Depression. These perspectives on the cause of the Great Depression will be discussed through out on.