The purpose of this research assignment is to determine to what extent the Wall Street Crash (1929) caused the Great Depression in America in the 1930s . In addition to the Wall Street crash, there were economic, social, and political problems in America that played a role in causing the Great Depression, such as unequal distribution of wealth, agricultural problems, unemployment, U.S. tariffs, and loans owed to the United States. to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an Original Essay The unequal distribution of wealth eventually led to unemployment and was a contributing factor to the collapse of the U.S. economy known as the Great Depression. Groups such as African Americans, Native Americans, and workers did not experience the same benefits of the economic boom of the early 1920s as other Americans such as upper- or middle-class Americans. Many workers were exploited, resulting in low wages and an inadequate lifestyle. Many African Americans and Native Americans were discriminated against and had a mediocre standard of living. Many individuals in these groups lived in poverty and this meant that they were too poor to purchase the goods they produced. Demand for goods fell because people didn't have the money to buy them, and the decreased demand caused factories to produce fewer goods. The reduction in goods produced in factories meant that not as many workers were needed in factories, so people lost their jobs. However, the stock market crash contributed to the Great Depression because it increased unemployment and caused many individuals to lose their bank savings (Bottaro et al., 2012). Stock prices rose steadily throughout the 1920s, but stocks eventually sold for more than they were worth. Investors began selling shares to get their money and this resulted in an oversupply of shares as demand for the shares decreased. The decrease in demand for shares has greatly reduced the value of shares. Stocks no longer had value and people stopped investing their money in stocks. Those who still owned shares were unable to repay their loans to the banks because they lost their money by investing in worthless shares, resulting in bank failures and a further loss of money for people who kept their life savings in the banks at collapse. People could no longer afford goods as banks lost their life savings. The stock market crash caused a decrease in demand for goods because people could no longer afford them. Production in factories had to decline because fewer people could afford the goods produced; resulting in many workers losing their jobs. Furthermore, living standards plummeted as people became unemployed and could no longer afford basic necessities. The unemployed could no longer pay their rent and had to be evicted. Many people were left homeless and traveled from place to place in search of work. Agricultural problems eventually led to unemployment for many, and this contributed to the economic recession because people were no longer earning money to live. The agricultural industry in America was booming during World War I because food was in high demand from Europe. American farmers produced a lot of food due to high demands and this high demand brought them a lot of profits during the war, but the end of the war caused a decrease in demand for food. The decrease in demand has resulted in a.
tags