The Great Depression Essay

The Great Depression

The Great Depression of the 1930’s plunged the American people into an economic crisis unlike any endured in the country before or since. This time period of limited economic growth was caused by a few main factors. Because these certain factors happened, american life was vastly changed until the recovery in the late 1930’s. Though economists are not completely sure why the Great Depression happened, a few key factors do stand out as specifically influencing the economy 's great downturn. The stock market, the buying and selling of stocks precisely know as Wall Street, altered American life greatly and some even claim caused the entire depression. During the 1920’s people wished to make quick money with the stock market. They did this by either over speculation or buying on margin. Over Speculation involves buying high risk stock so when you sell you make an extremely large profit, this is also known as the get rich quick plan. Buying on margin involves buying shares of stock with borrowed money, which is repaid when the shares are sold. Many people were involved in the stock market, so when the crash known as Black Tuesday happened in
…show more content…
This was one of the first steps for Americas recovery. Fiscal Policy began to stimulate the recovering states. Franklin Roosevelt implemented the New Deal in early 1933 and created 43 government programs. These programs were aimed to give people relief, providing food, shelter and work. For example, the Works Progress Administration (WPA) hired the unemployed to work on government building projects, and the Tennessee Valley Authority (TVA) constructed dams and power plants in a particularly depressed area. These programs also helped prevent future economic disasters, through reform and new regulations. These new regulations and programs helped the country back to it’s

Related Documents