The Great Depression Essay

1108 Words May 17th, 2016 5 Pages
The Great Depression was arguably the most severe and influential economic crisis of 20th century America. Historians and economists have speculated as to the causation of the Depression since its occurrence. While it could be argued that the crash of the New York City Stock Exchange (NYCSE) on October 19, 1929 was the main contributing cause of the great depression, it can be seen that the crash was “more of a symptom than a cause” and that combined factors such as government mismanagement, failure in agriculture, and failure in manufacturing were the leading cause to a greater extent.

The crash of the NYCSE on October 19, 1929 is often considered to have ended the age of the “Roaring Twenties” and plunged America into the Great Depression. Between October 24 and 29, 1929, the stock market lost between 8 and 9 million dollars. By November 1929 the Dow Jones had sunken from 400 points to 145 points, and by the end of November 16 billion dollars worth of market capitalization had been lost from NYCE stocks. Part of the reason that the crash had such a large effect on the economy was that millions of people and businesses were heavily participating in and therefore financially tied to the stock market. Massive loans were taken out to buy stock from the wildly expanding market in hopes of making huge returns. However, when the market crashed, the population suffered massive financial losses and often went bankrupt. Because so many people and businesses had lost their…

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