The Great Depression And Its Effect On The World Essay examples
It was the deepest and longest-lasting economic downturn in the history of the western industrialized world. In the United States, it began soon after the stock market crash of October 1929, which sent Wall Street into panic and wiped out millions of investors. It completely dominated the social and political landscape of American life and dramatically altered the relationship between the nation’s government and the people (Staff). The Great Depression had a long-lasting affect on the world because of the stock market crash, President Hoover, Roosevelt’s reaction, and the way that it affected the people.
Stock prices had risen more than fourfold from the low in 1929 to the peak in 1929. In 1928 and 1929, the Federal Reserve had raised interest rates in hopes of slowing the rapid rise in the stock prices (Great Depression). The stock market was on a bullish- or upward- trend, providing handsome profits to investors. In fact, the stock market had become a popular investment vehicle, despite its inherent risks (The Great Depression). In September 1929, the stock prices began to fall, and on October 29, it collapsed completely.
After the day- which is remembered as “Black Tuesday”- shares were worth only a fraction of their original value and stocks lost billions of dollars of value in a single day (Great Depression). The economy underwent deflation- a condition in which depressed demand pushes prices downward (The Great Depression). By 1932 about 12 to 13…