How Did The Great Depression Affect The Economy

The Great Depression first started as early as 1928, but did not affect the United States until 1929. The Great Stock Market crash started the event of the Depression here in America, but was not the main cause to why it happened. During the early stages of the depression, President Hoover failed to help the economy and continued with his belief system of giving people the least help they needed, so they can earn themselves a rightful spot with pride, not with government’s help. The Great Depression was a very intense experience for us, even until today, the

The Great Depression was caused by the stock market crash in 1929. The Great Depression was very sad time for Americans, who faced many adversities which ultimately changed the way they lived. During this period of time unemployment rose to nearly 25% of the population, those who did not lost their job saw a dramatic decrease in their pay.

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.

Second cause of the great depression is the uneven distribution of wealth. Business owners made huge profit from the beginning of the Roaring Twenties. These business owners did not deal with the low wages of their workers. As a result, the workers were not able to afford goods as these companies produced them. Also, after the world war one, the European nations owed America billions of dollars. The economy of these European countries was devastating; thus, there was no way for these countries to repay.

A document which supports why bank failures were a cause of the Great Depression is document 4 which states, "First of all let me state the simple fact that when you deposit money in a bank the bank does not put the money into a safe deposit vault. It invests your money in many different forms of credit-bonds, commercial paper, mortgages and many other kinds of loans.'' (Doc. 4 Franklin D. Roosevelt). From this it is shown that the president at that time, Roosevelt, clearly states that the banks were "playing" with the money of the U.S. citizens. This comes to support the prior information because the banks were in fact not keeping the lifesavings of the public safe but instead investing it for their own benefit.

The Great Depression was a horrible event for all the countries that were affected. It had many reason it caused a downfall to the economies worldwide. One of the reason was the Stock Market Crash of 1929 that made that led to the Great Depression into losing more than $40 billion dollars. Bank Failures -was another reason. Americans in that time suffered greatly due to the financial crisis to have economic support.

The bank’s collapse was not the only reason for the great depression the country lost over 26,000 businesses and those businesses that were left had to lay-off workers. With all of these people out of work no one was spending, so the lost revenue just continued to reduce the need for companies to produce products. People blamed themselves and then the government. President Herbert Hoover’s response was uncaring and not adequate to support the American people. President Hoover’s advisers said that there was no need for the federal

How did the great depression affect the united states? The great depression affected the united states in many ways, but one of the major factors that affected the united states during the great depression was the economy plummeting. The Great Depression was caused by investing in stocks, The stock market crashing and unemployment rates. One of the reasons why the Great Depression was caused is because of investing in stocks. "Suppose a man marries at the age of 23 and begins a regular saving of fifteen dollars a month and almost anyone who is employed can do that if he tries. if he invests in good common stocks and allows the dividends to accumulate, he will a the end of 20 years have at least eighty thousand dollars and an income from

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.

     The Great Depression was a huge economic downfall in North America and involved many other industrialized countries of the world. The Depression began in 1929 and lasted for about ten years. Millions of people lost their jobs along with many businesses going bankrupt. The common misconception of the Great Depression is people think that the stock market crash was the main cause for it. There were many causes for the Depression; unequal distribution of money during the 1920’s was the main cause of the Depression. This unequal distribution happened on many different classes of people. The imbalance of money is what created such an unstable economy. The stock market was doing much worse than people thought

In one word, it took 25 years to recover stock markets. All these facts sound horrible and terrify you. However, it is not always true that the Great Depression degenerated the country and ruined people’s life. The Great Depression helped America to step forward into a more stable and developed country just like rainstorm washing away all the dirts on the land and making it into a more productive land.

     In conclusion, the Great Depression can’t be attributed to just one cause. However, among overproduction; uneven distribution of wealth; protective tariffs; and the struggling of America’s leading industries, the largest contributor to causing the depression, in my opinion, was the unequal distribution of income. I believe this because if congress attempted to redistribute money to the consumers, people would have been able to purchase

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.

The Great Depression is a defining moment in time for not only American, but world history. This was a time that caused political, economical, and social unrest. Not only did the Great Depression cause a world wide panic, it also caused a world wide crisis unlike any before it. This paper will analyze both the causes and the effects of the Great Depression in the United States of America.

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.