Overview of Stock Market Crash 4. How people bought products on margin 5. How trouble came up 6. Causes of the Great Depression i. World-wide and domestic factors 6. Summary of the effects of Great Depression 7. The great depression is an immense tragedy that took millions of people in the United States from work. After almost a decade of prosperity and optimism, the US was now exposed to a period of despair.
The day when this happened is referred to as Black Tuesday, and it is the day when the stock market crashed. That was the official date when the Great Depression started. The stock market prices crashed to an extent that there was no hope for them to rise again. A long period of panic struck, and there was darkness in terms of stock market prices.
Many people tried as they could to sell their stock, but, unfortunately, no one was ready to buy. The stock market that had for long been viewed as a path to wealth and richness was now a sure path to bankruptcy Martin Failure of the stock market.
The stock market was not the only one that was affected; actually, that was just but the beginning of the Great Depression. In effect, it was unfavorable for the clients whose money was already in the markets for investment: It was also a double loss in that though the clients lost their money, the banks were forced to close down.
This is because they directly depended on the stock market. When this happened, it caused much panic even to other people, and this is what made them go to the other banks that were open to withdraw their money.
This kind of massive withdrawal had a major effect in that it caused the banks to close too. What is more, it was a disadvantage to those who did not withdraw their money because of not reaching the bank on time. After the banks closed, people went bankrupt and could not claim anything whosoever. Business and industry failure. Industries and businesses were highly affected too. This is because they were also working hand in hand with the stock market.
Since the stock market had closed down, this meant that their savings and capital were lost. This affected the labor in the businesses since they had to cut on the number of workers who worked in the corresponding companies. The stock market issue also affected the customers in that they stopped buying and spending on luxurious goods. This influenced greatly the companies that produced these commodities in terms of sales and also getting profit. The companies too had to close down Martin The Great Depression affected the farmers in a very adverse way.
Though they always survived other depressions that they encountered, this one was a big challenge to them. Most of the farmers were situated at the Great Plains before the Great Depression took place. The territory was affected so badly by drought and dust storms which were horrendous in nature. They created a situation that was referred to as the Dust Bowl.
The farmers were used to overgrazing, and now this had to combine with the effects of drought leading to a blow to the farmers. The latter were even left without food and crops for their animals. This is because the grass that the animals could feed on had already dried up and disappeared in the long run. The loose dirt was picked by the whirled wind, and topsoil got exposed.
The farmers were left without crops as the wind picked up everything on its way Martin Small scale farmers disadvantaged.
Small scale farmers were more disadvantaged than the large scale farmers. They turned out to have a small piece of land on which they had to get their daily bread. Some of these farmers asked for tractors from their respective governments, and thus, they were made to pay some amount to cater for those.
The hit that the farmers went through could not enable them to pay their debts. They could also not make it to feed their families, not mentioning themselves.
Some of the farmers had also capitalized on the stock market and bank. Since the stock market was affected, and as a result, the banks too, the farmers suffered as well. Losing their investments and crops influenced greatly the way they related with each other and had an impact on their contribution to the economy of the land. Many people lost their jobs during this time of the Great Depression.
Having lost their jobs, it was very difficult for people to bring food on the table. Families were even forced to sell their houses and move to apartments. Others were made to move in together since the standard of living was going down day by day. Paying rent was now a very hard thing to achieve. It was even complicated for people to separate or divorce. This was the time when the rate of separation and divorce went down.
This is because everyone needed the other to contribute, especially in paying the rent. Due to ego, men who had already lost their jobs felt ashamed even to walk in the cities, and, therefore, they were forced to stay in their homes. If at all the wives and the children were working, they felt that their status was challenged. Even in this situation, the two categories aforementioned were forced to go looking for jobs. As a matter of fact, it was hard to get jobs locally because every part of the country had been affected.
Many people were seen on the roads looking for jobs. Many people could not afford luxurious goods like cars, and thus, very few cars were seen on the roads.
A lot of the cars were on sale since maintenance costs were unaffordable. The majority of teenagers were affected as they were the people who were seen on the roads walking up and down looking to get some job Martin Older men, women, and families at large were on the rails too. They would be seen boarding trains just to cross and see whether they could get some occupation. Those who could not get the job would end up living in shanty towns which were outside the town. The houses in such places were made of affordable cheap materials like newspapers, wood, mud, cardboard, and iron sheets.
Farmers who could no longer afford their previous lives would be found in western California. This is because of the agricultural opportunity rumors that came from that area. It is true that there were periods of agricultural opportunities.
The farmers were nicknamed as Okies and Arkies. The citizens always blamed the governing President, though he always talked about optimism. Some of the shanty towns which were far from big cities were named after him — for instance, Hoovervilles. Interestingly, newspapers used to cover people sleeping in the streets were called Hoover Blankets. What is more, even bad looking broken cars were referred to as Hoover Wagons Martin The Great Depression had a huge impact in that it caused human suffering.
It took a very short time, and the levels of living went down drastically. The economy continued to fall almost every month. At first the stock market was an important but not the dominant influence.
But however, by the market became the symbol of the nation's prosperity and an icon of American business culture. Everything was going great; the stock prices reached what looked to be a permanently high plateau. In September of that year the market began to slide, but people ignored the sign. But on October 29, , "Black Tuesday", the stock market took a huge fall.
More than 16 million shares changed hands in frantic trading. Investors soon realized they were heavily in debt so they started to sell their stocks, which led to others doing the same. That was the start of all the panic, everyone started selling but most of them couldn't find buyers. The impact of "Black Tuesday" led to bank failures because speculators who had borrowed from banks to buy their stocks could not repay the loans because they could not sell their stocks.
This was the main start of the depression, because it not only wiped out the savings of thousands of Americans, it hurt commercial banks that had invested in the corporate stocks. Many of the middle class It also changed life as it was known.
During the depression of the thirties, For example, at one In eight pages this paper discusses the to Great Depression in America in a consideration of its causes. In eight pages this paper discusses the stock market crash in a consideration of the Great Depression, its causes and its imp Economic growth could not occur until consumers began spend In a paper of three pages, the writer looks at the Great Depression. A review of literature explores macroeconomic causes.
Causes Of The Great Depression Many factors played a role in bringing about the depression; however, the main cause for the Great Depression was the combination of the greatly unequal distribution of wealth throughout the 's and 30's, and the extensive stock market speculation that .
Causes and Effects of the Great Depression The Great Depression was a dark period in the history of theUnitedStates,affecting all the socio-economic sectors of the Americans’ lifestyle. It suppressedgreatly the economic status of the UnitedStates.
Essay on The Causes and Consequences of the Great Depression Home \ Free Essay Sample Papers \ The Great Depression was a long-lasting economic crisis in the global economy which started in the U.S. in , and later involved other countries. 6. Causes of the Great Depression i. World-wide and domestic factors 6. Summary of the effects of Great Depression 7. Conclusion 8. Works Cited. The Great Depression. Background. The great depression is an immense tragedy that took millions of people in the United States from work.
Causes of the Great Depression Essay - Causes of the Great Depression The Great Depression also called Depression of , or Slump of , began in and lasted until It was the longest and most severe depression ever experienced by the industrialized world. The Cause and Effects of the Great Depression Essay Words Jan 17th, 6 Pages Many people speculate that the stock market crash of was the main cause of The Great Depression.