It began on October 24,and was the most devastating stock market crash in the history of the United States. Much of the stock market crash can be attributed to exuberance and false expectations. In the years leading up tothe rising stock market prices had created vast sums of wealth for those invested, in turn encouraging borrowing to further buy more stock.
It started in the United States in and lasted for about a decade. It led to poverty, hunger and unemployment all over the world. It was a time of rebuilding after a great war. They had to pay a lot back to the USA because the Americans helped to win the war.
Above all, Germany was weak because it had lost the war. At the same time industries started producing many goods.
Stock market crash Many people also bought stocks. For a few years the value of stocks went up quickly. This made people invest even more money because they thought they would become rich very quickly. However, in September stock prices began to fall and on October 29, they completely collapsed.
This day is known as Black Tuesday, the day the stock market crashed.
After this day stocks were worth very little, sometimes even nothing at all. Many Americans lost all the money they had. Banks collapsed too because the people who had borrowed money were not able to pay it back.
Factories and companies had to close because a large part of the population could not buy goods any more. They had to send most of their workers home.
By about 13 million Americans, one fourth of all workers, were out of work. Those who kept their jobs had to work for little pay. At that time the USA had no system to help the poor.
There was no money for the unemployed and most of them had to wait in breadlines to get food. Unemployed march during the Great Depression Global effects of the economic crisis The crisis in the USA quickly spread to other countries around the world.
Many European countries that traded with America tried to protect their own economy. They put taxes on imports which made foreign goods more expensive.
In their book A Monetary History of the United States, –, Milton Friedman and Anna Schwartz laid out their case for a different explanation of the Great Depression. Essentially, the Great Depression, in their view, was caused by the fall of the money supply. The Great Depression began in the United States of America and quickly spread worldwide. It had severe effects in countries both rich and poor. Personal income, consumption, industrial output, tax revenue, profits and prices dropped, while international trade plunged by more than 50%. The Great Depression plunged the American people into an economic crisis unlike any endured in this country before or since. The worst and longest downturn in our economic history threw millions of hardworking individuals into poverty, and for more than a decade, neither the free market nor the.
They wanted people to buy the goods that their own country produced. Roosevelta Democrat. He created a new programme to help America and called it The New Deal.
The government started creating jobs and brought many people back to work. In Europe the people of many countries were also looking for new leaders. They promised people work and gave them jobs, especially by making more and more weapons. The depression in Germany ended by After the attack on Pearl Harbour inAmerica entered the war.Great Depression - Causes of the decline: The fundamental cause of the Great Depression in the United States was a decline in spending (sometimes referred to as aggregate demand), which led to a decline in production as manufacturers and merchandisers noticed an unintended rise in inventories.
The Great Depression began in August , when the United States economy first went into an economic leslutinsduphoenix.comgh the country spent two months with declining GDP, it was not until the Wall Street Crash in October that the effects of a declining economy were felt, and a major worldwide economic downturn ensued.
The market crash marked the beginning of a decade of high . And between and the Great Depression and World War II utterly redefined the role of government in American society and catapulted the United States from an isolated, peripheral state into the world’s hegemonic superpower.
The Great Depression is often called a “defining moment” in the twentieth-century history of the United States. Its most lasting effect was a transformation of the role of the federal government in the economy.
This investigation will be conducted by first analyzing the involvement of the United States in their economy a decade before the Great Depression in order to provide an understanding of the state of the United States prior to the Great Depression.
The Great Depression plunged the American people into an economic crisis unlike any endured in this country before or since. The worst and longest downturn in our economic history threw millions of hardworking individuals into poverty, and for more than a decade, neither the free market nor the.