Great Depression

Causes of The Great Depression On Sept 4 1929, the old-hat merchandiseplace hit an all time high. All the banks in the States were firmly sited in stocks, and individual investors borrowed on margin to invest in stocks. On October 29, 1929 the stock food market place place crashed. This simple vaunt case began the worst decade in history, The Great Depression. however though the stock market crash was the inception of the heavy(p) feeling, there are some(prenominal) events that lead up to it and other factors that c grasshe the economy into a deeper imprint. Since our country was running on role player 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) attribute then they actually had. Another is a lot of companies were dependant on Welfare capitalism which was providing welfare- standardised services to employee s such as offering higher pay and non-monetary compensation corresponding health care, housing and pensions. Also there was overproduction in textiles, farming was high, and automobile sales was also on the germinate 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 gold to purchase stocks, so if you wanted to buy $10,000 worth of stocks you completely had to put down $1000. The next thing that brought the stock market to crash was poor banking structures. There were few federal restrictions on start-up capital re! quirements for new banks. As a result legion(predicate) 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 raised interest rates on broker loans to preserve the horse but it didnt work. Instead, this further restricted the availability of money for businesses causing more bankruptcies. The next cause was the banking...If you want to tally out a full essay, order it on our website: OrderCustomPaper.com

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