Great Depression Essay

632 words - 3 pages

The Great Depression The Great Depression is said to have been the worst economic slump ever in the history of the United States of America. The depression began in the year 1929 and ended roughly around 1939. There were many causes that brought about the depression in the United States. The wealthy people got wealthier, while the poor got poorer. This disparity of wealth created an unstable economy, which in turn ignited a depression. This depression brought about one of the worst stock market crashes ever. There were many factors that caused this depression. Great improvements in productive methods during and after the war raised the output of industry beyond the purchasing capacity of U.S. farmers and wage earners. This increase in production was too much for the people. As the production of goods increased, consumer spending decreased. The cost of production decreased and wages slowly increased, but the cost of products stayed the same. Thus, profit increased tremendously, which increased the gap between the rich and middle class. 60 % of the population earned less than the $2000 poverty minimum and the top 5% of the population earned 33% of the income. A factor that led to this depression was the crash of the stock market. People wanted to get rich fast and they believed that investing in stocks was the easiest way of doing so. So a person finds a company that is doing well and buys a share, a portion, of the company. A person must have money to buy that share, but if he does not have the money he borrows this money from the bank. This is called buying stocks on margin. After making money off the stock, that person must then pay back the bank. As that...

Find Another Essay On Great Depression

Great Depression Essay

889 words - 4 pages The Great Depression did not just happen in America, it was born. In the 1930's a sequence of key events and problems led to the fall of America's economy. These included speculation, depressed farms and industries, wealth distribution, low money supply, no safeguards, overproduction, unemployment, and decline in foreign trade.Speculation was a way of gambling with short term investments. Speculators bought low stocks, which they thought, would

Great Depression Essay

1045 words - 4 pages Economists' fascination with the description and interpretation of the severity and duration of the Great Depression has not flagged in the seven decades since its onset. What began as an investigation centering on the U.S. Depression experience has broadened in recent years to cover the experience of countries around the world.At least five of the nine essays that Bernanke has collected in this volume (some with coauthors, and only one not

great depression

665 words - 3 pages The United States faced numerous problems including financial,economical and political during the Great Depression The Great Depression first began on October 29,1929 .The Great Depression was not an event that happened just instantly but was made of a chain reaction of events that happened though out the ‘’Roaring Twenties’’.The infamous day that resulted of the collection of events is widely known

Great Depression

1469 words - 6 pages The Great Depression was a difficult time for all the American people. It was a time of unemployment, falling wages, and hope for recovery (“Chapter 27”). Some of the causes of the Great Depression were government policies, economic factors, and the gold standard (“Chapter 27”). Other reasons included the fall of the stock market, overseas investments, and the investments in Florida real estate (Farless). The president at the time of this

Great Depression - 580 words

580 words - 3 pages In the late 1920’s, the United States was embedded in the Great Depression by their economic problems. During this devastating event, American lives were affected. President Herbert Hoover and President Franklin D. Roosevelt would develop solutions to affect America’s economy. By their strategies, they hoped to overcome the impacts of the Great Depression. They hoped America’s economy would prosper again. In 1929, the stock market had crashed

Great Depression

1974 words - 8 pages Great Depression In the United States between 1929 and 1933, one hundred thousand businesses were unsuccessful. Corporate profits plummeted by nine billion dollars. Americans’ deposits were vanishing behind the closed doors of the banks. At the beginning of 1930 those without jobs totaled four million; however, by the end of 1930 that number had rose to six million (Norton 696). All of these events characterizing the Great Depression were

Great depression

1593 words - 6 pages The 1930's An Age of Depression The Great Depression was started on October 24th also known as "Black Thursday" when the Stock Market crashed. When this happened many thousands of banks failed, sending millions of people to the unemployment line. Also at the time there was an extensive drought in the United States of America.The Hindenberg was another disaster that happened in the 1930's, the Hindenberg was the length of three football fields

The Great Depression Essay

1279 words - 5 pages Many adolescents, In the Great Depression, received the full affects and suffered. Some were left hungry, impoverished, and hopeless, how are adolescents today compared? The 30’s were a time of great distress for many Americans. Events such as the stock market crash, an economy suffering from being inflated, overuse of credit, a farming crisis, and other events led America to the economic downfall known as the Great Depression. During the great

The Great Depression

902 words - 4 pages Two books by different historians paint a largely similar picture of the Great Depression of the 1930s, but have quite different attitudes about this period. The Age of Extremes, The Short Twentieth Century 1914 - 1991, written by Eric Hobsbawm, who experienced the depression first hand, exaggerates somewhat the social suffering of this period. Whereas Britain in the Depression: Society and Politics 1929 - 1939 was written by two much younger

The Great Depression( Canada)

1013 words - 4 pages The great depression, a time that was hard for almost all Canadian citizens. A time where Canadians looked towards there government for some form of decisive action that would end the great depression but unfortunately, Canadians only received relief efforts and attempts at protecting our economy both of which where horrible inadequate. As a result, Canadians during this time faced a series of hardships which worsened the human condition

The Great Depression( Canada)

1013 words - 4 pages The great depression, a time that was hard for almost all Canadian citizens. A time where Canadians looked towards there government for some form of decisive action that would end the great depression but unfortunately, Canadians only received relief efforts and attempts at protecting our economy both of which where horrible inadequate. As a result, Canadians during this time faced a series of hardships which worsened the human condition

Similar Essays

Great Depression Essay

819 words - 3 pages What caused the Great Depression?There are many down falls in America's economy, but there is one that over powers them all - The Great Depression. After Black Tuesday, the U.S went into an economic crisis known as the Great Depression. (Doc. D) The period preceding the depression saw stocks traded on the New York Stock Exchange on new highs. (B.E) However during the depression the political, economic, and social institutions in the U.S were in

Great Depression Essay

1417 words - 6 pages Ashley Vogel09 October 2012Essay 1Today, we all know, or have learned something about the great depression and the effects it had on the United States. There are a list of issues the created the great depression, but have we actually thought about it, and tried to understand it before? In the 1920's the American economy was going strong, for the most part, and the vast majority of Americans had witnessed economic growth, however, stock prices

Great Depression Essay

1417 words - 6 pages Ashley Vogel09 October 2012Essay 1Today, we all know, or have learned something about the great depression and the effects it had on the United States. There are a list of issues the created the great depression, but have we actually thought about it, and tried to understand it before? In the 1920's the American economy was going strong, for the most part, and the vast majority of Americans had witnessed economic growth, however, stock prices

Great Depression Essay 2011 Words

2011 words - 8 pages 6What were the causes of the Great Depression?Can you imagine waking up one morning and suddenly realizing that all your investments and savings have disappeared? Keep in mind that at that time there was no federal deposit insurance system, which means that if your bank fail, you lose all your savings and there was no possible way to ever get your money back. However, this is not just a bad scenario, but the reality for millions of Americans