The Causes of the Great Depression Essay - 707 Words

In the 1920’s the problems that led to the Great Depression were dispersed over a time of maldistribution of wealth, and what was called a bull market.

What were the causes of the Great Depression

The Cause and Effects of the Great Depression Essay

What were the causes of the great depression essay

On Thursday, October 24, the market plunged at the opening bell, causing a panic. Though investors managed to halt the slide, just five days later on "Black Tuesday" the market crashed, losing 12 percent of its value and wiping out $14 billion of investments. Two months later, stockholders had lost more than $40 billion dollars. Even though the stock market regained some of its losses by the end of 1930, the economy was devastated. America truly entered what is called the Great Depression.

Great causes essay the the of what were depression

The effects of the Great Depression were more severe in America but were felt across all world economies. Investors in the stock market could not pay their loans. These included real estate companies. People demanded their deposits from banks in panic and as a result, there was less money in circulation. Government’s efforts to reverse the resultant deflation did not yield results. Companies closed down because of deflation and low demand while some laid down thousands of their workers. Consequently, unemployment levels increased. Real estate properties that were once priced possessions lost value. Investors in real estate could not pay their mortgages. Banks repossessed their properties, which were worthless because no one could afford to buy them. Over nine thousands failed closed down. Nations had to implement major changes in their macroeconomic policies and institutions to recover from the Great Depression.


Economics Essays: Causes of Great Depression

Thus, the statement of the first paragraph above, that Roosevelt's policies "have rescued the nation from the Great Depression," is also false; and its falsehood obscures the reality that many people were angry and hostile to Roosevelt, not just because the policies were socialistic or involved bigger goverment, but because they actually had not worked.

Causes of the Great Depression i

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