The Great Depression
- Submitted by: krenea1
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- Category: History: American
- Date Submitted: 08/21/2011 09:04 AM
- Pages: 7
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The great depression was one of the most catastrophic times of our economic history. It was such a significant event that it changed the political and economic landscape of the United States and was felt across the world. Many people lost their jobs and savings during this time and soon found their selves in a destitute situation. The Great Depression lasted around 10 years in the United States, but the length of the depression varied across the world. There are many theories as to when it actually began and what caused it; however, it is most often linked to Black Tuesday.
The roaring 20’s appeared to be great. Businesses were booming, investing in stocks was the new get rich quick solution and times were looking up. Industrialization was on the rise and allowed for new innovations in the market to take root. The banking industry made it easy for people and companies to conduct business. People were using credit from the banks to invest in stocks, purchase farms, seeds and the next new household appliance. However, the economy was producing more than it consumed, there were many inequalities in the work force and a blanket of prosperity had fallen over many eyes. According to Livingston (2009):
The underlying cause of that economic disaster was a fundamental shift of income shares away from wages and consumption to corporate profits that produced a tidal wave of surplus capital that could not be profitably invested in goods production—and, in fact, was not invested in goods production. (p. 4)
The stock market crash that occurred on October 29, 1929 and commonly referred to as Black Tuesday can be found in almost every American history book. In the days before the crash, the stock market appeared to be riding a grade 4 river in an inflatable raft. There were highs and lows throughout. As investors got nervous, stocks started selling at an alarming rate. Fear spread like wild fire throughout the market and it soon bottomed out. This event not only shocked and...
The roaring 20’s appeared to be great. Businesses were booming, investing in stocks was the new get rich quick solution and times were looking up. Industrialization was on the rise and allowed for new innovations in the market to take root. The banking industry made it easy for people and companies to conduct business. People were using credit from the banks to invest in stocks, purchase farms, seeds and the next new household appliance. However, the economy was producing more than it consumed, there were many inequalities in the work force and a blanket of prosperity had fallen over many eyes. According to Livingston (2009):
The underlying cause of that economic disaster was a fundamental shift of income shares away from wages and consumption to corporate profits that produced a tidal wave of surplus capital that could not be profitably invested in goods production—and, in fact, was not invested in goods production. (p. 4)
The stock market crash that occurred on October 29, 1929 and commonly referred to as Black Tuesday can be found in almost every American history book. In the days before the crash, the stock market appeared to be riding a grade 4 river in an inflatable raft. There were highs and lows throughout. As investors got nervous, stocks started selling at an alarming rate. Fear spread like wild fire throughout the market and it soon bottomed out. This event not only shocked and...