The Great Depression: The Economic Crisis Of The 1930's
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4 Pages
One of the most researched topics in American history is the economic crisis of the 1930’s, we know it as the Great depression. In most places it started in 1929 and lasted well into the 1930’s and it was one of the deepest, most wide spread, and longest depressions in the 20th century. This depression wasn’t just a local thing, it was going on throughout the world it was especially a big issue with places that were dependent on heavy industries. Areas other than industry dependent cities were effected, Farming communities and rural areas were affected because the falling crop prices. When crop prices fell, it left farmers making little profit off of their crops and leaving them with little money. This however was only the start to the Great Depression, there
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Before the crash, exchanging stocks was the best new thing and it was a great way to invest your money. Around 1970, the stocks values started rising and soon found its way to Wall Street. During this time people were able to get stock on a margin, which is when they only pay 10% of the stock’s value and borrow the rest from a broker. If the buyer couldn’t provide cash to the brokers after the price fell, the broker would sell the stocks to cover the loan. The Stock Market Crash happened on Tuesday October 29th, 1929, they called this day Black Tuesday. This was one of the worst days on Wall Street, shareholders traded 16.4 million shares and lost $14 billion on the New York Stock Exchange. A few months later, the Crash had caused around $40 billion dollars’ worth of losses. After losing a huge amount of money it would be extremely hard to make up for what has been lost. Even though the stock market had a huge effect on the Great Depression, it didn’t cause the depression itself. However the Stock Market Crash did reveal some of the major defects in the economy and in government policies. One thing that had a huge effect on the economy was the purchase and productions of goods. Producers
Before the crash, exchanging stocks was the best new thing and it was a great way to invest your money. Around 1970, the stocks values started rising and soon found its way to Wall Street. During this time people were able to get stock on a margin, which is when they only pay 10% of the stock’s value and borrow the rest from a broker. If the buyer couldn’t provide cash to the brokers after the price fell, the broker would sell the stocks to cover the loan. The Stock Market Crash happened on Tuesday October 29th, 1929, they called this day Black Tuesday. This was one of the worst days on Wall Street, shareholders traded 16.4 million shares and lost $14 billion on the New York Stock Exchange. A few months later, the Crash had caused around $40 billion dollars’ worth of losses. After losing a huge amount of money it would be extremely hard to make up for what has been lost. Even though the stock market had a huge effect on the Great Depression, it didn’t cause the depression itself. However the Stock Market Crash did reveal some of the major defects in the economy and in government policies. One thing that had a huge effect on the economy was the purchase and productions of goods. Producers