The Great Depression : A Long Term Cause Essay

1565 Words Jan 28th, 2016 7 Pages
The Great Depression was a time period of suffering for many Americans that began after the stock market crashed in 1929. During this time the unemployment rate increased for both white americans of 25% as well as for people of African American descent of up to 50%. Farms began to fail during this time period because there was overproduction from WWI as well as the Dust Bowl. Since farms couldn’t be used during the Dust Bowl many lost their farms and homes which left them homeless as well as unemployed. Many felt hopeless due to not be able to work so they began to starve and lose their homes. The stock market crash of 1929 became a long term cause because previously they allowed buying on margin which formed a lot debt which also caused a lot of speculation. Additionally, many rumors spread about the stop market being rigged which lead to panic and quick sales of stock. When people lost trust in the stock market there was no money invested which lead to the stock market crash. The banking system also became a long term cause because banks foreclosed due to no money circulation, no loans, and credit which resulted mass withdrawal and the loss of saving of thousands. Since people could no longer trust the banks they felt scared which lead to mass withdrawal which resulted in the banks foreclosing. During the 1928 Presidential Election Hoover was elected as new president. While in office Hoover believed in Rugged Individualism which meant people could fend for themselves.…

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