The stock market crash is often viewed as the reason the Great Depression happened, but in the Crash Course History Video he clearly states that the stock market was not the cause. The Great Depression occurred to a great variety of things and had been slow progressing since the end of World War I. World War I set the motion to the Great Depression due to the severity of the impact the war had on the world. The lives lost in war caused a great decrease in consumer and work force. The real cause of the Great Depression could still be pinned on America. The reason being is due to the bank system. As it is said in Crash Course History Video, 8:06 “By the end of 1931, 2294 banks had failed”. When the banks couldn’t supply money banks went belly up, then when banks weren’t supplying money, jobs weren’t getting money to pay workers. When jobs didn’t have money they had to lay off workers. The accumulation of fewer jobs, less money, excess supply, and high unemployment caused the depression in America. When America went under the rest of the world was like a domino. World trade came to a halt, other …show more content…
“German unemployment had helped propel him to power” (Kagan, pg. 889). Hitler learned that he could not take control of Germany by force and so decided to do it legally. He rallied supporters from all kinds of people in Germany. With the rising unemployment, Hitler’s support grew. He slowly grew his Nazi faction and used them to take over Germany’s political system. He was able to rally many supporters by using the increasing depression as a pitch. By recruiting enough support in Germany he was able to secure enough votes to have Nazi occupy the political scene and once he rose to Chancellor of Germany he purged Germany of all his enemies. The President died shortly after causing Hitler’s position to be the highest in
The stock market crash of 1929 was one of the main causes of the Great Depression. Before the stock market crash, many people bought on margin, which caused the stock market to become very unbalanced, which led to the crash. Many people had invested heavily in the stock market during the 1920’s. All of these people who invested in the stock market lost all the money they had, since they relied on the stock market so much. The stock market crash also played a more physiological role in causing the Great Depression.
There were many causes for the Great Depression. The first and one of the largest was the stock market crash. Before 1929 the stock market was flourishing and everyone wanted to buy stocks. People were so confident in the stock market that they were buying “on margin”, which meant that brokers would lend them 10% of the money they invested (D1). The problems began when stocks were being over speculated. When people began to realize this, they began selling there shares. On October 29, 1929, 16 million shares were sold (D9). This day became known as “Black Thursday”, the day the stock market crashed (D12). The second reason was the overproduction of goods. Factories had already produced too many goods and now there was no demand for them. The government began to raise tariffs to protect Canadian industries but things only led downhill from there.
Firstly, the stock market crash in the late 1920s was one of the main factors that contributed to the onset of the Great Depression. The common goal of many Canadians in the roaring twenties was to put behind the horrors and doubts of World War I, and focus on what was to come in the near future. However, on October 29, 1929, the Stock Market in New York City experienced one of its worst days of all time. The catastrophic impact that the stock market crash had was enough to shift the world in the direction of an economic downfall. The rapid expansion of the 1920 stock market caused the market to hit an all-time high.
Hitler was superb at convincing people to believe everything he said. He promised the people a roast in every pot, security, and many more things. By promising the people security that meant that he would keep them all safe and that he can do a better job than anyone else. Adolf Hitler increased in support from bankers and industrialists. So, pretty much he had most of the people who had higher power on his side durning this time period. The the united States stock market crasedd in October 1929 unemployment in Germany quickly rose to over six million. This opened another window for Hitler to get more peoplewho thought that they had nothing and their life was over to side with him. President Hindenburg did not want for Hitler to become the chancellor so instead he appointed Von Pappen but, Adolf Hitler did not agree nor did the Nazi's. hitler eventually did become the chancellor on January 30th, 1933 Hitler then banned all political parties. In 1934 the president died and Adolf Hitler forced his way into power. Now that he was the president he can change anyhting that he wants.
There is no doubt that the stock market crash contributed to the great depression, but how? One way that the Crash contributed to the depression was the loss of money it caused to the average man. It is believed that in the first day of the crash almost a billion dollars were lost, this took a large amount out of the pocket of the common man. Without this money people were unable to purchase consumer goods, which the United States economy was based on. Another way the Crash contributed to the depression was the loss of confidence in the market. When t...
There were many reasons that caused the great depression of 1929. The foremost reason has to be the overvalued stocks, which led to the crashing of the stock market. The stock market crash of 1929 was then most significant market crash in U.S. history. though the crash lasted only four days, it led to a catastrophic sell-off. The Dow Average a loss of 90% of its value between its record high close of 381.2 on September 3, 1929, and its following bottom of 41.22 on July 8, 1932. That was the worst market in terms of percentage loss in modern U.S. history. It would be another 25 years before the Dow was able regain its September 3 high.
It is said that the cause of the catastrophic stock market crash known as the great depression was due mostly to uncontrolled political and industrial systems otherwise known as capitalism. However, the timeline leading up to the Great Depression proves that many other factors played a role in the stock market crash that occurred in the decade of the 1930's. So lets take a look at rather four, factors contributing to the great depression that we will further discuss in the following paragraphs. Four of the main causes that led up to the great depression were unequal distribution of wealth, uncontrolled political and industrial systems, high tariffs and war debts.
The Great Depression was the longest American slump in the economy to ever occur. The Great Depression lasted for about a decade between 1929 and 1939, the dates of the Stock Market Crash of 1929 and the starting of World War II. A number of factors actually caused the Great Depression. One commonly known factor said to have caused the Great Depression is the Stock Market Crash of 1929, although this is not directly correct. The market crash was only a symptom of, as well as a transition into, the Great Depression. Other symptoms and causes includes, wealth inequality, overproduction, stock speculation, excess loaning, deflation, unemployment, and no profits.
The Stock Market Crash of 1929 was the most devastating crash in U.S. history. It started on October 24, 1929 and the downfall ended in July 1932. I always wondered what caused this calamity. Before starting this report, I knew basic idea about the crash. It was a time of decline and huge fortunes were lost. Now I can figure out just why.
Most Americans began to live a better life from 1922-1929 otherwise known as the seven fat years. This was due to the government’s relaxed approach towards the economy. The laissez-faire system was encouraged because there was little intervention from the state. Businessmen didn’t have to listen to government they could make their own decisions in order to produce profit and wealth. Government’s approach was pro-industry and anti-labour which meant that there was no protection for the workers thus leading to inequality, long working hours and not a enough pay for the workers to really feel happy or satisfied. Powerful monopolies were able to grow unchecked. Although the laissez is a reason for the crash it isn’t the only one reason. It can be argued that the economic isolationism, loans to Germany and other countries and unequal wealth and income etc. were the causes of the crash because America had many more influences than government not intervening and they were involved with a lot of things and people and would come out on the other side biting more than they could chew during the depression.
During the years of 1914-1918 was “the greatest wars to end all wars” known as World War I that jumpstarted our journey towards the Great Depression. In this war it involved fighting in between nations, alliances, imperialism, militarism, nationalism, and assassinations. After all this fighting came the Roaring 20s. The Roaring 20s was a time period when many people defied prohibition, indulged into new styles and art, and the economy was at an all time high. Now imagine having a luxurious mansion and you leaving your family at home to go to work at your fancy job. Then you come home that evening and you’re all of a sudden broke. Unreal right? Well this was what happened to many families on October 29, 1929 when the stock market crashed and the Great Depression started. United States economy took a turn for the worst and brought about devastation which resulted into problems for the American people/government and them having to deal with it in different ways.
Adolf Hitler came to power on February 28, 1933 (Rossel). He rose to power using inflammatory speeches and inspiring hope for the defeated Germans. He constructed a system to empower the German people and allow them to thrive in the period after the Great Depression (Noakes). Using keen acumen and decisive moves, he was able to turn Germany into a war machine bent on the creation of an Aryan utopian society, at the cost of all inferior races, especially the Jews ("The Period between 1933 and 1939"). At this time Germany was a defeated country. They had recently had numerous humiliating defeats in WWI, and the Germans no longer had the pride they once had celebrated (Laurita). Augmented by the fact that the Great Depression had ravaged the country and left many in a state of penury and impoverished, the Germans were desperate. As well, Germany was currently a country without any source of stability without a generally supported constitution. When Hitler promised a utopian society filled with hope and where the Germans would be exalted as the superior race, the Germans listened and obeyed his every word (Noakes). Hitler fed on the desperation and hopelessness of these German people to make a society driven by fear; this state of pity allowed Hitler to convince the Germans that he could provide a better future.
There have been many issues that caused the stock market to crash. One major effect on the Great Depression was the current state of agriculture. The effect from both the Dust Bowl drought and the Great Depression made it hard on farmers in the early 1900’s; it was hard for farmers to produce crops (“The Ultimate AP US History”). Farmers with small businesses were forced to end their profession because of the new economic climate. As the farmers left the business of agriculture, there was less crop to sell the country (Pettinger). With the drop in prices after the war, it was difficult for farmers to stay current with loan payments (Romer and Pells).
The stock market crash of 1929 was the primary event that led to the collapse of stability in the nation and ultimately paved the road to the Great Depression. The crash was a wide range of causes that varied throughout the prosperous times of the 1920’s. There were consumers buying on margin, too much faith in businesses and government, and most felt there were large expansions in the stock market. Because of all these positive views that the people of the American society possessed, people hardly looked at the crises in front of them.... ...
The Great Depression was a period of first-time decline in economic movement. It occurred between the years 1929 and 1939. It was the worst and longest economic breakdown in history. The Wall Street stock market crash started the Great Depression; it had terrible effects on the country (United States of America). When the stock market started failing many factories closed production of all types of good. Businesses and banks started closing down and farmers fell into bankruptcy. Many people lost everything, their jobs, their savings, and homes. More than thirteen million people were unemployed.