What caused the great depression?
The stock market crashed in 1927. The reason for this is that all of the stocks and bonds crashed - leaving thousands who invested in companies virtually broke. There was an immediate scare on Wall Street, in which all of the people who owned stocks decided to sell at once - which created a massive problem for the stock market. Even the large companies went from their stocks reading 100+ to less than 5 dollars a share. A similar crash happened in the 1980's. This is when computers started being used regularly in the stock market. What happened was that computer programmers had put in a program that would sell all of their stocks when the price hit a certain level. This happened and created a smaller stock market crash (not to the level of the great depression, obviously). Since then, however, the goverment has installed programs that will make it impossible for people to sell stocks when a certain level of sales has been hit, therefore keeping the buying public from selling all of their stocks at once. The 1927 great depression had a trickle down effect throughout the country, especially considering that the stock market largely consisted of companies that were involved in manufacturing of textiles, food, wood, metal, etc. It is not the same stock market today with technology being a main focus. It has also been suggested that the United States used a lot of its manpower and funds on World War I, in which the industries were running quite well. However, when the war was finished, a lot of these industries were not providing work and materials. Another aspect is how the stock market crash trickled down into the farming aspect of life. In the early 1900's still much of the country were farmers. When the stock market crashed, it not only affected the people in large cities, but as well as the farmers who supplied the vast majority of the food for the country. Because of this, a lot of people moved to the West Coast to find new work and a new life - seeing how much of the west coast was not as reliant on the economy as the east coast. However, it was still quite difficult to live during this time period.
What caused the Great Depression?
Apparently it was Republicans. It took a Democrat to get the US out of it. Warren G. Harding (R) 1921-1923 Calvin Coolidge (R) 1923 - 1929 Herbert Hoover (R) 1929 -1933 Franklin D Roosevelt (D) 1933 - 1945 I am an Independent voter btw
Causes of the Great Depression?
These are some questions given to me for a mid-term study guide. Can anyone give me some help? Thanks!!! What were the causes of the Great Depression and how did President Franklin Roosevelt’s New Deal attempt to solve the country’s economic problems? Discuss President Herbert Hoover’s policies after the Crash of 1929, what impact FDR’s election had on the country and which New Deal programs were most important and successful, and which ones failed to achieve their goals.
What were the causes of the Great Depression?
There are tons of possible responses. -Stock market crash was the main one -inequality of people -money supply -deflation from after the war -a few more
What were the 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 1920's, and the extensive stock market speculation that took place during the latter part that same decade. The maldistribution of wealth in the 1920's existed on many levels. Money was distributed disparately between the rich and the middle-class, between industry and agriculture within the United States, and between the U.S. and Europe. This imbalance of wealth created an unstable economy. The excessive speculation in the late 1920's kept the stock market artificially high, but eventually lead to large market crashes. These market crashes, combined with the maldistribution of wealth, caused the American economy to capsize.
What was one cause of the Great Depression?
1. What was one cause of the Great Depression? government's failure to act a banking crisis high tariffs overseas limits on farm production 2. Which was a cause of the stock market crash in 1929? Too few investors were willing to purchase a wide range of stocks. Investors bought stocks on credit because they thought prices would continue rising. Banks refused to lend investors the money they needed to keep buying stocks. Too many investors tried to get in on buying the best stocks. 3. What happened in the farmland of the Great Plains in the 1930s? Soybean crops were smaller than usual. The government bought all the farms. Strong winds and drought created a Dust Bowl. Cotton farmers switched to farming barley. 4. What name was given to the plains farmers who migrated west during the 1930s? Okies Croppers Dusters Callies 5. People lost jobs and suffered from poverty and malnutrition during the Great Depression. What else happened? There was a drop in the number of marriages and births. More people began keeping journals. More people applied for food stamps. People defaulted on their income taxes.