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The Great Depression was the worst economic downturn in the history of the industrialized world, lasting from 1929 to 1939. It began after the stock market crash of October 1929 and it sent Wall Street into a panic and wiped million of investors.

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How did The Great Depression change history?

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How did The Great Depression change history?

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The Great Depression of 1929 ruin the U.S. economy. One unemployment rose to 25%, a third of all banks failed, and homeless increased. 2 housing prices plummeted 67%, international trade collapsed by 65% and deflation soared above 10%.  Production had already declined and unemployment had risen, leaving stock prices much higher than their actual value. The agricultural sector of the economy was struggling due to drought and falling food prices.

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What caused The Great Depression to happen?

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What caused The Great Depression to happen?

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There was multiple reason for The Great Depression to happen. Some of the major events include World War 1, Black Tuesday, bank failures, farm failures, and Dust bowls. Bank failures occurred right after Black Tuesday and over 4year span , about 9,000 banks were under/failed. The farm failures were caused by the loss of money within the United States. Black Tuesday was noted as the beginning of the Great Depression, this was the day that the stock market had crashed and where the banks gone under.

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When did The Great Depression happen? & When did it end?

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When did The Great Depression happen? & When did it end?

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The Great Depression started in 1929 lasting to 1939. Unfortunately during The Great Depression there was a drought that blew the poorly deserved soil that was left there by the over farming and over organized. The Great Depression was one of America’s darkest times at an economic stand point.

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During the first five years of the Great Depression, the economy shrank 50%. In 1929, economic output was 105$ billion. The economy began shrinking in August 1929. By the end of the year, 650 banks had failed. In 1930 the economy shrank another 8.5%. Total bank deposits dropped from 15 billion in 1929 to 2.3 billion in 1933. After the loss of money, businesses couldn’t pay employees and employees couldn’t buy goods for themselves. There was a tighter credit, and less money to pay employees, which cause the employees/families to not afford the life necessities.

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Overall the Dust bowls had caused migration for 400,000 people into urban cities leaving those people homeless until they could find jobs. The government had also spent its war economy investing in heavily in the manufacturing sector for the next decade further on. They had also loaned money to Britain and France for reconstruction, but the European banks couldn’t pay the money back. This spending money had contributed to the debt the US had gone through and later, Th Great Depression.