Causes Of The Great Depression Essay

The Great Depression

What all caused the worst economic downfall in U.S history?... It was not just one factor, but instead a combination of things. There is no agreed upon list of all of the things that really happened but these are some of the common reasons of how this all came about. Although the United states had experienced many depressions before the stock market crash of 1929, none had been as harsh or as long lasting before “Black Thursday.” or “Black Tuesday.”Which struck Wall Street. At first many thought it was just some wild bump. By 1933 the depression greatly worsened.

During the 1920’s before the great depression often called the Roaring Twenties, the U.S. economy had an economic boom. Things such as electricity, radio, telephone and cars were being produced.

Bank deposits were not being accepted and as banks failed people simply lost every last bit of their savings. Surviving banks, unsure of the economic situation and only concerned about their survival, stopped creating new loans. Two months after the original crash in October, stockholders had lost more than forty billion dollars. Even though the stock market began to regain some of the things it lost by the end of 1930 it was not enough and America entered what was called The Great Depression

There was a mass production in manufacturing, telecommunications, movie and chemical sectors. Most of the population moved into the cities to apply for new jobs. Americans found themselves with enormous amounts of money to spend which was then invested in the stock market and deposited to banks. With the supply of money growing rapidly, banks were opening up at the rate of four to five per day.

Many believed that the Causes of the Great Depression included poor purchasing power among the middle class and the working class to sustain high levels of production, and falling crop prices . The timing and severity of the Great Depression varied across