By 1933, almost half of those banks had failed. Two economists of the 1920s, Waddell Catchings and William Trufant Foster, popularized a theory that influenced many policy makers, including Herbert Hoover, Henry A. Wallace. It held the economy produced more than it consumed, because the consumers did not have enough income. Thus the unequal distribution of wealth throughout the 1920s caused the Great Depression. According to this view, the root cause of the Great Depression was a global over-investment in heavy industry capacity compared to wages and earnings from independent businesses, such as farms.
Farming and rural areas suffered as crop prices fell by approximately 60%. There were many causes of the Great Depression, ranging from poor spending and over production to banks failing and the stock market crashing. Paragraph 2: Due to the Roaring 20’s, people were overconfident due to the information given by bad leaders, which led to poor spending. Doc A+B: According to the business cycle, there was going to be a 5 year growth for everyone in the US. -They would all become rich and poverty would just go away (Words of President Calvin Coolidge) Doc C: John T. Raskob, a well-known economist, told people to buy more stocks and in invest in banks and you’ll become a millionaire.
The event that started the Great Depression was “Black Tuesday.” On this day, the stock market crashed. The so called “bubble” had burst. The roaring twenties were over. Banks were forced to close, as they had no more money for the massive amount of people that were making withdrawals. Many lost their jobs, and were forced to look for work elsewhere.
The Depression started with the market crash of 1929. Unemployment was on a rise, businesses were failing. The reason of that is because the stock market was doing badly, there were overproduction and a crash which is stock prices go down. Many people lost their jobs and those that were still working had to take major pay cuts, and people who were trying to get a job couldn't because the employees couldn't pay them.
The great depression meant that many of the families had lost their savings; it was horrible to know that all the money that they had saved throughout the years has just vanished so quickly. They were also afraid of the growing communist party; they wanted to abolish private companies, land and businesses. If this happened many of the middle class would lose their job where they were able to make money. Therefore because of this they saw Hitler as a strong leader who could help their country recover and
The depression made people bankrupt and lose their jobs; Hitler and the Nazis promised people that they would get them jobs and solve unemployment. By 1930, the number of people unemployed was at 3,217,000 and the Nazis votes had gone up by 18.3%. Another reason why people would agree was that the ‘Wall Street Crash’ not only caused unemployment but also caused farmers to get evicted, have bad harvests, and
Roosevelt had to provide America’s faith in the economy and government by providing relief to the people. One way he helped restore it was by creating the Bank Holiday. The Bank Holiday closed the banks down for a short period of time, so congress was able to discuss the banking reforms. By shutting the banks down for a short period of time, it would help stabilize them, and help reassure American’s that things would get better. After the banks had been closed for a little while, the Emergency Bank Relief Act came into effect.
When did the Great Depression occur? The Great Depression occurred October 29, 1929, known as black Tuesday. The end of the depression is the United States is as associated with the war economy of World War II, beginning around 1939. Why did the Great Depression occur? The Great Depression occurred because a stock market mart had been an important source of funding for industry.
The Great Depression The 1920’s were a decade often referred to as “the roaring twenties,” an era when successful businessmen were national heroes, land values were flourishing, and the hems on women's skirts were getting shorter than ever before! This was a period when the traditional morals of rural America were challenged - women were voting, driving cars, and gaining employment. The average American was busy buying vehicles, household appliances, and playing in the stock market, where big money could be made. On Black Tuesday, 29 October 1929, the stock market crashed, initiating the Great Depression, the worst economic downfall in the history of the modern industrial world. Banks failed, over 100,000 businesses closed, and more than
The stock market crashed rapidly, and took a big hit to the U.S. economy. Many investors put almost all their money into the stock markets. This made the Great Depression. On January 7th, 1953 Herbert Hoover sent a message out to the world and said please take out all of your money before you go broke and start working again. And before you go broke and don’t know what to do with your life.