Great Depression

Causes of The Great Depression On Sept 4 1929, the timeworn merchandiseplace hit an all time high. All the banks in the States were heavily sited in stocks, and individual investors borrowed on margin to invest in stocks. On October 29, 1929 the stock commercialize place crashed. This simple viewing case began the worst decade in history, The Great Depression. even so though the stock foodstuff crash was the inception of the with child(p) feeling, there are some(prenominal) events that lead up to it and other factors that c grasshe the economy into a deeper first. Since our country was running on bastard prosperity, it was going to eventually lead up to a depression if it was not fixed. For instance, our country had overdependence on mass production. Consumers were spending more(prenominal) space then they actually had. Another is a lot of companies were strung-out on Welfare capitalism which was providing welfare- standardised services to employee s such(prenominal) as offering higher pay and non-monetary compensation like health care, housing and pensions. Also there was overproduction in textiles, farming was high, and automobile sales was also on the organize as well. The next cause was the events leading up to why the stock market crashed. For example, there was low margin requirements.

At that time you exactly had to put down 10% of the cash to purchase stocks, so if you wanted to buy $10,000 worth of stocks you save had to put down $1000. The next thing that brought the stock market to crash was poor banking structures. There were few federal restri ctions on start-up capital requirements for ! new banks. As a result many banks were pretty much highly insolvent and when they invested heavily in the stock market, the results proved to be devastating once the market crashed. Another factor was the Federal Reserve aggressively elevated interest rates on broker loans to preserve the sawbuck but it didnt work. Instead, this further restricted the availability of capital for businesses causing more bankruptcies. The next cause was the banking...If you want to semen out a full essay, order it on our website: OrderCustomPaper.com

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