The Main Causes Of The Great Depression Of 1929-39

1068 Words 5 Pages
Begging for food, financially unstable, mentally falling apart, and overall just fighting to live every day were all due to the Great Depression from 1929-39. Herbert Hoover was president during a business thriving time and less than eight months into his presidency, the depression began (Hoover believed the crash was part of a passing recession.) These years were the longest-lasting economic downturn in the history of the Western industrialized world. Manufacturing/production, business profits and investments in the stock market all grew and increased at this time period until the stock market crash began which started the travesty. After the stock market crash of October 1929, panic and confusion filled the minds of many in Wall Street. …show more content…
When hell broke lose with the crash, that had a snowball effect and created more problems because of it. The sense that one can borrow encouraged speculation. While people would buy on the margin (take a loan to invest in the stock market) they indefinitely screwed themselves over because if one’s stock was to decrease, the person would come to be double in debt. More and more people were drilling into a hole that couldn’t be filled back up, especially on the day Wall Street sprouted which was October 29th (Black Tuesday). Near over a month earlier the stock market prices peaked on September 3rd, so interesting to say how the change in finances can be so quick. Another cause of the depression, speaking of the banks were many Bank Failures, which wiped out savings. During prosperity, people deposit extra money in banks so banks then shared out the money and charged interest. However, when banks lost their money, there was no protection for investors. Businesses that had put money in are now struggling so another cause unravelled, overproduction. Cutbacks and layoffs boomed and then sadly sales were hurt because of it. From high tariffs in foreign sales to under-consumption, anywhere one would go was essentially falling apart as if a domino effect …show more content…
One cannot just let this problem “consume” (pun sorry) their emotions and take over their life. So as a reaction, some effects were in place. Creditors demanded their loans be repaid because of the decrease of money in their pockets. Men grew angry over the sense nobility, when one puts in a great sum and gets nothing bad, the people will react in an aggressive/forward way. Justified that they want the money back as soon as possible because the more time without money, more problems will be faced. In turn, most investors could not sell stocks anymore. The reputation drastically alters, now seen as these barren/negative sheets which lead to your demise (wealth). In time where stocks fail, an exponential decrease of ‘the need’ for them vanishes. Although Americans need for stocks disappeared, most people started to sell belongings in order to be more financially stable. Individuals had to sell everything they owned, give up certain benefits, cut down on certain foods and drinks, an overall turn for the worst. Nonetheless, it was a turn for the worst, people had to do something about

Related Documents