The Economic Causes Of The Great Depression

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The period of the great depression is one of the most trying socioeconomic challenges ever experienced in the United States. The crashing of the stock market, the failure of numerous banks, and massive loss of jobs marked the Great Depression. During this period, many Americans struggled to meet their daily needs and it often became common to see American citizens begging for food and money in the streets. The Great Depression had a significant impact on the lives of the majority of Americans who either lost their jobs, savings, and even possessions. Various theories exist about the causes of the Great Depression, including the stock market crash and government inaction. While many of these are often thought as theories it is often assumed that the Great Depression was a result of several factors that cumulated into the economic slowdown.
Moreover, the Great Depression in the United States began at the end of the 1920’s with a backdrop of a flourishing economy. The 1920’s were a remarkable
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According to Rothbard, “in October the stock market crash made everyone realize that depression has truly arrived” (163). The crash of the stock market was attributed to a series of events that cumulated to what is known as ‘Black Tuesday’. The stock market had soured throughout most of the decade and the more the market improved its performance the more people became eager to invest their money. The market reached its peak in August 1929 and then the prices began to decline. On Thursday, October 24, 1929, panic ensued and about 12 million stocks were traded. On Tuesday, October 29, 1929, further panic led to about 16 million stocks being traded, which lead to the crumbling of prices and the collapse of the stock market. This marked the beginning of about a decade of depression in America (The Library of Congress; The History of the Stock

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