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The Great Depression: Causes And Events. This Essay Discusses The Causes Of The Great Depression And Details This Historical Event. Works Cited Page Included.

1849 words - 7 pages

Just under seventy-three years ago, the United States of America was hit by the most devastating economic crisis to this day. The Great Depression is not only relevant to the people of that era, but also to us, the people of present day society who currently are experiencing a smaller scale depression of our own. Just as today, we may wonder what has sparked our mini economic depression; the people of the Great Depression shared that sentiment. October 29th, 1929 will in the hearts of many forever live in infamy as "Black Tuesday"; the day that the stock market crashed and the depression began. Although many people believe that was the start of the Great Depression and that the stock market crash was the main cause, there are several sources with theories contrasting that opinion. Within those sources there is yet further controversy as to when and more importantly why and how the Great Depression commenced. Several sources will be critically torn apart, contrasted and compared in order to extrapolate the truth as to the main reasons as to why the Great Depression began.By the late 1920's the stock market was booming and seen as the new gateway to quick, easy wealth. More and more people were jumping into the game of buying and selling stocks. Everything seemed to be going well as the country seemed to be prospering after World War I and seemed to be riding on a true economic high point. The only problem seemed to be the agriculture business, which, was in a bad position, but not many people seemed to notice because most other economic anchors were doing wonderful across the board. The automobile industry was doing well and radios were the hot seller in the entertainment market. Many blue-collar working families were banking on the stock market to help them to afford these new products. Even people who did not put one cent into the stock market were prospering. This was because the market affected everyone whether it was directly through actually buying stock or if it was indirectly through something such as a family who owned a bank or worked for a business that was public. (On the stock market) Therefore, people who did not truly have the monetary resources to afford the gambling game of the stock market were still trying to get in on this seemingly amazing way to "get rich quick". These people managed to do this by buying stocks on margin, which is basically, a means of buying stocks on loaned money. The problem with this method was that if you lose your money in the market, you not only lose all the money that you made but you also have to pay off your loans as well. The sad part of this is that many people lacked the foresight to notice that this could be a monetarily lethal method of stock purchasing. It was later found to be truly lethal as many people committed suicide to escape the huge piles of debt that they had assumed through the practice of buying stocks on margin.In late October of 1929 the stock market dipped very rapidly to...

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