The Great Depression

Cause & Effect 1

The Great Depression Cause & Effect Essay

The Great Depression was most definitely a turning point in American history. It was the single most devastating period of time that this country has had to face. The economy collapsed due to the rise and fall of shares in the stock market. Some of the main events that led to Great Depression include the New York Stock Exchange, and the “Black Days”. It’s safe to say that the United States was in its worst financial condition to date.

Cause & Effect 3
      The Great Depression started in 1929. It was the result of a failing economy. Basically, the economy of the world suffered an enormous drop in output and an outrageous increase in unemployment. The economy continued to suffer in a downward spiral until 1932. At that point it hit bottom at 50% of its 1929 level. Needless to say, unemployment elevated in the United States. In 1933 it peaked at 24.9%. The Great Depression had the worst and longest period of unemployment ever recorded to date. As a result of a failing economy, all labor institutions reduced their labor force to the minimum amount, several stores closed, and small businesses failed to exist. Since its’ inception in the 1700’s, the Unites States has experienced quite a few short periods of depression, but the Great Depression of the1930’s was by far the worst.

      As far as the roots of the great depression are concerned, they can be traced back all the way to the New York Stock Exchange that took place in the year 1929. During this particular period of time private individuals, also known as brokers, banks, and businesses were conformed to buying stocks that rose in value because they thought they were a good buy. They would then buy more than one share of an individual stock. As this process continued, the share prices soared above the real value in terms of the dividends they might produce. In 1928, Montgomery Ward stock jumped from $117 to $140. Sadly, while the...