The Rise Of The Great Depression Essay

1031 Words Jan 28th, 2016 5 Pages
The Great Depression was when the stock market crashed in America and made many investors and businesses lose their money. It started in 1929 till 1939. One long-term cause that caused the Great Depression was the decline in industry. An example of the industry declining is when the railroad industry closed because cars and buses were being produced and becoming popular. This led to the railroad industry laying off workers and eventually shut down. If workers get laid off, they won’t have any money to feed themselves. Another long-term factor that caused the Great Depression was because people were buying on margin (borrowing money to buy a stock) in the stock market and using the method speculation. Speculation was buying a stock and hoping to gain money but a risky move. Since people were buying and margin and speculating, this led to the market crashing because the stock prices shot up and margin buyers couldn’t pay their debt. Herbert Hoover was elected as president in 1928. He believed that the economy has cycles, and he believed in voluntary cooperation, and last but not least, he believed in rugged individualism. His beliefs prolonged the Great Depression because he wouldn’t help the citizens of America and instead, he let the citizens help themselves. Franklin D. Roosevelt was elected in 1932 when the Great Depression started not to long ago and he came up with the New Deal. The New Deal was a bunch of programs and laws that were planned to contribute to the Great…

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