The Great Depression Of The 1930 ' S Essay

786 Words Mar 22nd, 2015 4 Pages
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 October 1929, the economy took a massive downturn. Investors sold off all their stock without buying more, causing a massive loss of money. After this massive crash, people who used the methods had a difficult time paying debts. Business practices of the 1930’s were also to blame, industries were producing more goods…

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