Foundation in Business
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Economics Essay. (Great Depression)
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Great Depression was one of the international worst economic depression in the history of United States which lasted from 1929 to 1939 (Kelly, 2017). $12.9 million of stock was sold by trader on a day (Amadeo, 2017). The amount was triple than the usual amount. The Great Depression was not only cause by one event but was caused by many types of event (Kelly, 2017). In the United States, the Great Depression disabled the president who was Herbert Hoover and led Franklin D. Roosevelt election in the year 1932. On the year 1933 was the height of Depression (Amadeo, 2017). The nation?s workforce on unemployment had risen from 3 percent to 25 percent and homelessness increased. 42 percent wages had reduced for those who had work.
Timeline of Great Depression.
On October 24th1929, ?Black Thursday? started. $12.9 million shares of stock had been sold in one day by traders, the amount was triple than the usual (Amadeo, 2017). Life during the Great Depression caused a huge number of famers to suffer the loss of their farms (Amadeo, 2017). On August 1929 to June 1938 was the timeline of Great Depression which occurred approximately ten years (Amadeo, 2017). October 25th and 26th one percent stocks gained on Friday yet one percent was loss on the half day of Saturday (Amadeo, 2017). Black Monday (October 28th) 13 percent of stock prices decreased (Amadeo, 2017). As a result, 16 million shares had been traded and another 12 percent was loss by the market on Black Tuesday (October 29th). Therefore, the stock market continued to decrease (Amadeo, 2017). Consumer spending and investment decreased over the next few years causing unemployment to increase as failing companies unwaged labours (History.com Staff, 2009). Great Depression had touched the lowest point in the year 1933, 15 million American workers were unemployed and 650 of the bank had flopped (Histroy.com Staff, 2017).
Causes of Great Depression.
Economist believe that there are numerous theories that explains the causes of Great Depression. Stock Market Crash of 1929 is the first theory that caused the Great Depression (Kelly, 2017). As mentioned above as the ?October 29th, Black Tuesday?. Five days before Black Tuesday which is on...