The Great Depression Was An Event That Let The World Essay

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The Great Depression was an event that let the world realize how the world’s economy can suffer a severe downfall. The Great Depression was a harsh worldwide economic depression that lasted till 1940. There were several important events that happened during the Great Depression which lead to the decline of the world’s economy. The Great Depression was the worst economic depression in the United States. The Stock Market, bank runs and bank failures, and the uneven distribution of income are some of the main causes of the Great Depression. The Stock Market was one of the major causes that lead to the Great Depression. Operating banks made numerous loans available for stock speculation. This allowed for the buying and selling of stock without serious regard of its actual value or the strength of the individual company. On October 29, 1929, now known as Black Tuesday, is when the Stock Market crashed. On that same day, 16.4 million shares were sold, and prices plunged. People who had bought on credit, which was mostly everyone, were stuck with huge debts. Additionally, two months after the Stock Market crashed, stockholders had lost more than $40 billion dollars. However, the crash alone did not cause the Great Depression, but it did precipitate its arrival. Stocks were overpriced, because of speculation. Massive fraud and illegal activities happened due to a lack of rules and regulations. People began to use margin buying. The Stock Market crash was due because the market…

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