The Great Depression Of 1929 Essay
Proceeding the Great Depression the world had found itself in an economic boom. The 1920’s, referred to as the Roaring Twenties the economy was in a state of technological achievement and growth. “Things such as electricity, radio, telephone and cars were being produced for the masses” (DeGrace). Many people had decided to move into cites to more easily surround themselves with these technologies and to find jobs in manufacturing. Citizens had begun to invest money into stocks and deposit savings into banks, which along with the manufacturing growth, caused many countries to have money supply increase. Unfortunately many countries could not handle the growth which lead to the stock market crash of 1929 referred by Historians as Black Tuesday (Frank & Bernanke).
There are 4 main conditions that have been attributed to causing the Great Depression. In the 1920’s the stock market rapidly expanded and peaked on August 1929. Unemployment was on the rise and production was declining. As the months went by stock prices started to decline and starting on October 18, 1929 the panic set in and the fall started. Many people started to sell their stocks and on October 29, 1929 the market crashed, wiping out thousands of investors and costing billions of dollars.
The second cause that led to the Great Depression was the bank failures. Many banks failed and lost the money that people had invested in them. The…