What Are The Causes Of The Great Depression
Great Depression
The early 1920’s was first known as the roaring twenties. Everything in America seemed to be going great. There was new inventions, more factories and industrialization! People were using credit, stock prices were rising it seemed as if nothing could go wrong. That was until the late 1920’s and everything started to slowly fall apart and then the economy all fell all at once.
Americans all had smiles on their faces except for farmers. Farmers had purchased land when the war was taking place and they had expected to pay it off, but with all the factories and new business being built they were being forgotten and they had all these crops and nobody was buying them. Therefore the farmers went in debt. Some couldn't provide for …show more content…
Then Stock prices began to fall and investors and depositors began to develop fear. This fear resulted in the stock market crash. The stock market crashing led to people losing all of their saving and investments. Some banks went bankrupt!
One big and well-known day that walked America into the great depression was October 24th, 1929 leading to black Tuesday. Black Tuesday took place on wall street in New York, the machinery couldn't handle all the trading, causing stock tickers to run hours behind and billions of dollars were lost for thousands of investors.Investment companies and leading bankers attempted to stabilize the market by buying up great blocks of stock and it didn't work because by Tuesday stock prices collapsed completely across America.
The collapse of the unstable economy led to bank, farm, and business failures that led to massive unemployment. Families across the country struggled to eat. The drought in mississippi valley in 1930 caused families to not be able to afford taxes and they lost their farmland and made no profit for themselves. The government had created Smoot-Hawley Tariff in 1930 to help protect American companies. This charged a high tax for imports thereby leading to less trade between America and foreign countries along with some economic
The early 1920’s was first known as the roaring twenties. Everything in America seemed to be going great. There was new inventions, more factories and industrialization! People were using credit, stock prices were rising it seemed as if nothing could go wrong. That was until the late 1920’s and everything started to slowly fall apart and then the economy all fell all at once.
Americans all had smiles on their faces except for farmers. Farmers had purchased land when the war was taking place and they had expected to pay it off, but with all the factories and new business being built they were being forgotten and they had all these crops and nobody was buying them. Therefore the farmers went in debt. Some couldn't provide for …show more content…
Then Stock prices began to fall and investors and depositors began to develop fear. This fear resulted in the stock market crash. The stock market crashing led to people losing all of their saving and investments. Some banks went bankrupt!
One big and well-known day that walked America into the great depression was October 24th, 1929 leading to black Tuesday. Black Tuesday took place on wall street in New York, the machinery couldn't handle all the trading, causing stock tickers to run hours behind and billions of dollars were lost for thousands of investors.Investment companies and leading bankers attempted to stabilize the market by buying up great blocks of stock and it didn't work because by Tuesday stock prices collapsed completely across America.
The collapse of the unstable economy led to bank, farm, and business failures that led to massive unemployment. Families across the country struggled to eat. The drought in mississippi valley in 1930 caused families to not be able to afford taxes and they lost their farmland and made no profit for themselves. The government had created Smoot-Hawley Tariff in 1930 to help protect American companies. This charged a high tax for imports thereby leading to less trade between America and foreign countries along with some economic