The Great Depression Essay - 1716 Words

Most everyone has at least heard of the Great Depression that hit America by storm in the early twentieth century. Even though people are taught about the Great Depression, I personally think that a lot of people do not understand the severity that it caused and the livelihoods that it forever changed. The Great Depression, which lasted over a period of ten years, resulted in a lot of heartache for many nations worldwide (Fraser, 2010). As for the United States, the worst of the Great Depression harbored between 1929 through 1933 (Fraser, 2010). The Great Depression went down into history as being the worst traumatic economic moment for the United States (Paul Evans). It is still recognized for being the longest and severe depression that†¦show more content†¦The decline of economic output was mainly due to a decline in aggregate demand (Bernstein). One of the main causes that contributed to the Great Depression’s radical decline of economic output was the New York st ock market crash of 1929 (Romer). Leading up to the great crash of 1929, was the steady increase of stock prices between 1921 through 1929. In order to slow the growing prices of the stock market, the Federal Reserve stepped in and increased interest rates. With the increase of interest rates people stopped purchasing as much, especially in areas such as manufacturing, which in turn reduced production (James, Spring 2010). By the fall of 1929, stock prices reached an overwhelming low, and people started panicking. This lead to what we now refer to as â€Å"Black Thursday†, which occurred on October 24, 1929. On the following Tuesday, stock process hit an all time low which will forever be remembered as â€Å"Black Tuesday† (Romer). Since many of the stocks had been purchased on margin by using loans secured by only a small fraction of the stock’s actual value, the overwhelming price decline forced many to liquidate their holdings (James, Spring 2010). During thi s time, the stock prices for the United States declined a devastating thirty-three percent (Paul Evans). This terrified people, which unsurprisingly lead them to not purchasing items like they had originally. When people stopped spending like they normally did, this caused a chain reactionShow MoreRelatedThe Depression Of The Great Depression1223 Words   |  5 Pagesfar-reaching consequences as the Great Depression. This experience was the most extended and severe depression of the Western world. It was an economic downturn that began in 1929 and lasted until 1939. A large amount of America’s labor force lost their jobs and suffered during this crisis. During the nation’s financial disaster, Franklin Delano Roosevelt became president and made extensive changes to America’s political structure. The effects of the Great Depression had lasting consequences that areRead MoreThe Depression Of The Great Depression1232 Words   |  5 Pagespeople think that the stoc k crash was to blame for the Great Depression but that is not correct. Both the crash and depression were the result of problems with the economy that were still underneath society s minds. The depression affected people in a series of ways: poverty is spreading causing farm distress, unemployment, health, family stresses and unfortunately, discrimination increases. America tended to blame Hoover for the depression and all the problems. When the 1932 election came peopleRead MoreThe Great Depression Essay1390 Words   |  6 PagesIntroduction: The world had faced two main economic problems. The first one was the Great Depression in the early of 20th Century. 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You would think the United States would have learned from their mistakes but it seems we are going down the same road once again without even taking a step back and realizing it. When people talk about the Great Depression not a single person will have anything good to say about it. It caused families a great deal of pain that they will never forget. WithRead MoreThe Great Depression1368 Words   |  6 PagesAfter WW1 the Great Depression had a very late impact on the major film companies in France, when it did, it unfortunately caused several film studios to go bankrupt, then in the late 1920’s to 1930’s many small film companies and groups emerged giving birth to the tendency called poetic realism. Because the large companies who made films with a focus on making money were gone the filmmakers and artists were able to concern themselves with the art of film, they often took poetic innovations thatRead MoreThe Great Depression1133 Words   |  5 Pagesâ€Å"The only thing we have to fear is fear itself,† is a famous quote once said during the Great Depression by Franklin D. Roosevelt. After one world war, great financial fallout, and another world war to follow, the twentieth century was already shaping out to be a handful. When the Great Depression was coming to an end and the economy was trying to turn around, jobs started opening up and a new wave of imm igrants came into New York, the Puerto Ricans. For some the American dream was to come to