...The great depression altered many lives and businesses in a big way. Business owners lost their businesses and many families had a hard time getting food on the table. Some topics that connected to the great depression are what caused the great depression, how the world wars are connected to the great depression, and Black Tuesday. To better understand the great depression it is important to know how the great depression started. Historians have been trying for years to figure out what the real cause of the great depression was but there are multiple reasons and explanations for the crash(Caldwell). During this time in America there was not enough demand for the goods and services companies there providing (Caldwell). America’s economy was thriving before the crash because durable products were being purchased by my many people. Durable goods are worth a lot of money but once they are purchased they are not needed for awhile. “Durable goods are consumer goods that last a long time, such as automobiles, appliances, and home furnishings,”(Caldwell). Because there was not enough demand for goods companies did not need as many raw goods. Companies buy raw goods...
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...Great Depression The Great Depression had a tremendous effect on the people of this Dark Age in the United States. Throughout these tough times people faced many hardships such as increases in crime, the stock market crash and the Dust Bowl. These events were all results of the Great Depression and also had huge impacts on people’s lives. Beginning of the Great Depression The Depression began in the year 1929 and was a result of the ending of the First World War. The United States was sending aid to Europe in recovery but this resulted in an over extension of credit and spending in the 1920’s. This over extension was a direct cause that led to the “most dramatic economic event in United States history”. No other depression had such a devastating impact on the United States society. Throughout the twelve years of the Great Depression, one quarter of the work force were unemployed, 5,500 banks closed and 32,000 businesses went bankrupt (“Great Depression”). Stock Market Crash On the infamous day known as Black Tuesday, October 29, 1929 the stock market crashed. The only thing was that no one was thinking anything could go wrong because a little over a month before the market had reached a 10-year high price. From then on the prices slowly decreased causing confusion, apprehension, and uncertainty began to set into all investors big and small (Galbraith 1). A couple of days before Black Tuesday a day known as Black Thursday was when people really started to notice...
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...The Great Depression1929 Contents 1.Introduction 2.causes of great depression 3.Consequences of the depression. 4.Conclusion Introduction The Great Depression was a severe worldwide economic depression in the decade preceding World War II. The timing of the Great Depression varied across nations, but in most countries it started in about 1929 and lasted until the late 1930s or early 1940s. It was the longest, most widespread, and deepest depression of the 20th century, and is used in the 21stcentury as an example of how far the world's economy can decline. The depression originated in the United States, triggered by the stock market crash of October 29, 1929 (known as Black Tuesday), but quickly spread to almost every country in the world. The Great Depression had devastating effects in virtually every country, rich and poor. Personal income, tax revenue, profits and prices dropped, and international trade plunged by half to two-thirds. Unemployment in the United States rose to 25% , and in some countries rose as high as 33%. Cities all around the world were hit hard, especially those dependent on heavy industry. Construction was virtually halted in many countries. Farming and rural areas suffered as crop prices fell by approximately 60 percent. Facing plummeting demand with few alternate sources of jobs, areas dependent on primary sector industries such as cash cropping, mining and logging suffered the most. Countries...
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...essay discussing the problems created by the Great Depression and actions taken by the federal government to solve these problems The Great Depression was the period of worldwide economic depression which happened from 1929 to about 1941. Although it was a global event, the United States was the country attracting the most attention of people all around the world, which resulted in its great influence to the global economy. Some people said that the Great Depression created problems which weakened the U.S, while others argued that thanks to it, the nation had opportunity to fix itself and experienced a following long prosperous period. My essay will discuss the problems caused by the Great Depression and actions taken by the Federal government and the President to solve these problems. After years by years of optimism, development and prosperity, it was on Tuesday, October 29th,1929 , called “Black Tuesday” when the U.S officially faced the despair of the Great Depression with the Crash of the Stock Market. Though the Falling of the Stock Market was not the only cause of the Great Depression, it was the starting point of a decade of high unemployment, poverty, low profits, deflation, plunging farm incomes, and lost opportunities for economic growth and personal advancement. The main effect was a sudden and loss of confidence in the economic future. What were the problems created by the Great Depression? Years by years from that time, not only...
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...The Great Depression lasted from 1929 to 1939 and furthermore was the worst economic collapse in America’s history. The depression was a domino effect of stock prices appearing much higher than their actual value, people across the nation buying on credit, and unsold goods accumulating. These factors put into consideration swept America from the roaring twenties to the Great Depression. Cinderella Man is a true story that adventures us through boxer James Braddock’s life, and his sojourn through the depression by helping us understand the hardships people faced during those times. Cinderella Man portrayed the harshness of the Great Depression through James Braddock’s trials and those of the people of the Great Depression. Prior to the Depression, there was a time of luxury as well as prosperity known as the Roaring 20s. During the Roaring 20s, our nation’s wealth nearly doubled, women gained the right to vote, the economy appeared to be upwards of flawless. In the onset of the film, Braddox and his wife are distinctly content with their lives, their luxurious clothing, and their extensive house. The early and mid...
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...Black Tuesday. On one desolate Tuesday in 1929, the stock market crashed, resulting in the start of the Great Depression. This period in time was an all-time low in America's history. Lost jobs, little money, and business failure made a lonesome backdrop for this once proud nation. A profound effect emerged from this tragedy, a revolution in music. The Great Depression was the cause of both setbacks and innovations in the music industry, particularly the jazz style. In the early stages of the Depression, the music industry was hit hard. Many musicians lost their jobs. All over the nation, jobs became few and far between, because many businesses couldn't afford to hire employees. Buddy Bolden, Jelly Roll Morton, and Sidney Bechet are just some of the musicians whose...
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...1.Calvin Coolidge- The 30th president elected in 1923 was Calvin Coolidge, who was also born on Independence Day. President Coolidge was noted as one of the most negatives presidents when it came to big issues but was noted as a president who was well worthy of the title. President Coolidge was the president right before the Great Depression, he questioned what has changed over time how did society turn out the way it was. 2.Charles Lindbergh- As the times developed so did the technology and ability to travel. In 1927 Charles Lindbergh was the first pilot to fly in a plane from New York to Paris nonstop alone. This flight is considered transatlantic crossing, which although had been done before never completed alone. A 35 hour flight from...
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...THE GREAT DEPRESSION AND THE STOCK MARKET CRASH An Introduction The stock market crash The stock market was created on 1792 to allow stocks and bonds to be traded “bought and sold”. A “stock market crash” is the steep fall of the prices of stocks due to widespread financial panic. America experienced an era of great peace and prosperity during the 1920s. After World War I, the so-called “Roaring Twenties” economic and cultural boom was fueled by industrialization and the popularization of new technologies such as radio and the automobile. Air flight was becoming common as well. The Dow stock average soared throughout the Roaring Twenties and many investors aggressively purchased shares, comforted by the fact that stocks were thought to be extremely safe by most economists due to the country’s powerful economic boom. Investors soon purchased stocks on margin, which is the borrowing of stock for the purpose of gaining financial leverage. For every dollar invested, a margin user would borrow nine dollars worth of stock. The use of leverage meant that if a stock went up 1%, the investor would make 10%. Unfortunately, leverage also works the other way around and amplifies even minor losses. In 1929, the Federal Reserve raised interest rates several times in an attempt to cool the overheated economy and stock market. On Thursday, October 24th 1929, a spate of panic selling occurred as investors began to realize that the stock boom was...
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...There were five main reasons that America got in to the great depressions. The largest factor causing the great depressions was the stock market crash of 1929. The stock market crash was when there was a huge decline in stock market values. The reason that the stock market crashed was because it had a large expansion in the 1920’s. so many people invested their money in the stock market. People became so obsessed with putting their money into the stock market that they would mortgage their houses and invest all that money. This obsession to buy shares lasted until the prices on the stock market began to decrease. People began to get worried because they had so much invested in it. The biggest issue was that people would borrow money from banks...
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...The Great Depression The great depression was a dramatic, world wide economic downturn beginning in some countries as early as 1928. The beginning of the great depression in the United States is associated with the stock market crash in October 29, 1929, known as Black Tuesday and the end is associated with the onset of the war economy of World War II, beginning around 1939. The depression had devastating effects in both the industrialized countries and those which exported raw materials. International trade decline, personal incomes, tax revenues, prices and profits. Cities all around the world were hit hard. Construction was really slow and so was farming and rural areas suffered as crop prices fell by 40 to 60 percent. The great depression ended at different times in different countries. The great depression was not a sudden total collapse. The stock markets turn upward in the early 1930’s. Together government and business actually spent more in the first half on 1930 than the previous year. Consumers, many of those whom had suffered severe losses in the stock market the prior year cut back on there expenses by 10 percent. In the 1930, credit was available at low rates. People did not want to add new debt by barrowing. By May 1930, auto sales began to decline to below levels of 1928. Prices in general began to decline. Although wages were held for the moment they began to drop in 1931. Conditions were worse in the farming areas. By late 1930 a steady decline...
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...Loren Pilon Paventi SUNY US History March 11th, 2013 Birth of the Great Depression: Causes of the Stock Market Crash of 1929 It was a time of great economic growth in the United States after World War I. The economy was growing rapidly, fueled by industrialization and the rapid development of new technologies such as the automobile, electricity, telephone, aviation and radio. Many people and businesses began investing in the stock market at this time. The stock market is the organized trading of stocks. The owning of stocks gave people partial ownership of a company while infusing cash into the company. In return, people earned money on their investment as the company grew. The stock market provides financial support required by large business to establish and expand their enterprises. This in turn allows companies to grow and increase employment, provide a community tax base, and other financial benefits for the people and the economy. In the 1920’s the stock market boomed. During the 1920’s people were enthusiastic and more willing to take risks. They brought this attitude to the stock market, causing stock prices to increase exponentially. However, the severely overpriced and unaffordable stocks and willingness of the people to carelessly invest their money lead to one of the darkest days in U.S. history: October 29th, 1929. This is the day the stock market crashed, known in infamy as Black Tuesday. The stock market crash of 1929 was caused by numerous flaws in economic...
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...ANNOTATED BIBLIOGRAPHY Research Question: How the credit system and market speculation lead to the infamous Wall Street crashes of 1929 and how they were the main causes of the Great Depression. The Sources: 1. Bierman, Jr., Harold. "Great Crash of 1929." Grolier Multimedia Encyclopedia. 2010. Grolier Online. 21 Feb. 2010 . * This database source gives a brief overview of the Great Crash of 1929, its causes, its effects and the various statistics and figures associated with the Great Crash. This is a secondary source and is reliable as it is written by a professor of Business Administration at Cornell University who has cited credible sources. The source has a non-partisan view point as it details more facts than individual perspective; however any biases that existed would eventually be counterbalanced by other sources. The main limitation of this source is that it is a brief overview of the causes of the Great Crash. The facts presented in this source which will further substantiate my argument in the research paper. 2. Coolidge, Calvin. Address. State of the Union. Capitol Hill, Washington D.C. 4 Dec. 1928. State of the Union Address Library. 4 Mar. 2009. Web. 16 Mar. 2010. . * This speech was given by President Calvin Coolidge on Dec 5, 1928. This speech almost a year before the Great Crash of 1929. He addresses the American public and praises them for their virtues and also glorifies the extent of prosperity in America by claiming that it is something...
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...Credit in the 1920s Leads to the Great Depression in the 1930s The citizens of the United States started buying on credit in the 1920s all over the United States because there was a great economic boom. When the United States citizens started buying on credit they did not know that it was going to take a turn for the worst. In the 1920s the economy was booming with new industries and new methods of production. America was able to use a large supply of raw materials to produce chemicals, steel, glass, and machinery in which it became the structure of a massive boom in products. Stores started to sell lots of goods which made the value of stocks rise. Therefore many United States citizens started to invest in the stock market with borrowed money assuming that they would make a fast profit. Thinking they could pay the loans off when they sold the stock. There was more people invested into the stock market in the 1920s then there ever was before. They started buying cars, refrigerators, and other luxury items with money they did not have. The economy eventually quit booming and people could no longer buy things because they had spent all their money into paying off their credit. This left millions of people in debt and many people ended up losing their jobs. The stock market crashed and the economy started to collapse inflammation started and the United States entered the Great Depression. Supply and demand helped lengthen the Great Depression. American farms and factories produced...
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...were the causes of the Great Depression? What was the scale of the great depression? What was the Dust Bowl? What was Hoover's strategy for dealing with the situation? ============================================ *Increased Mexican Immigration in 1920s Agricultural Development Cotton - Texas & Arizona Fruit & Vegetables - California Urban populations grew rapidly San Antonio Los Angeles *Xenophobia - Fear of immigrants *Labor & Aids Organization Workers Unions 1929 League of United Latin American Citizens (LULAC) Provided benefits and Civil Right for the Mexicans. Herbert Hoover 1929-1933 The Great Engineer Philanthropist Food Administration WWI Secretary of Commerce *Cause of Depression Lack of Diversity in the Economy Older industries (mining, lumber, and steel) not strong enough to sustain prosperity New industries (electronics, chemicals, and petroleum) also not strong enough. Automobiles and construction strongest industries in transition from heavy industry to consumer economy. 1926-27 market for cars and homes saturated. Limited Purchasing Power Not enough buying power (domestic markets) 1/3 of wealth held by 5%% of population Many already scraping by in 1929 International Debt Treaty of Versailles German Repayment Speculation Stock Market crash Investment Schemes *The Crash (Start of Depression) Thursday, October 24, 1929 Recorded 16 Million shares were sold Black Tuesday...
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...On October 29, 1929 the stock market crashed and that triggered the Great Depression. That day was known as Black Tuesday and investors realized their shares were overpriced and they tried to to sell them all at once. Many investors lost all their savings and went bankrupt. The cause for the depression dependence on exports of natural resources, optimism, dependence on credit, high tariffs, and low income. Canada’s economy depended on exporting natural resources. Investor thought there will be nothing bad happening in the future, so they didn’t prepare on backup plans. People were depending more on credit as it was efficient because they didn’t have the cash. Many business began to overproduce which was bad because there wasn’t a high enough...
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