great depression

The Great Depression was one the most important events that ever took place in American history.It was the worst economic bend ever in U.S. history, and one, which spread to virtually the entire world.It lasted for more than a decade and left the country a devastating site.There were many aspects that caused this terrible moment in America; however, the main cause for the Great Depression was the combination of unequal distribution of wealth throughout the 1920’s and the 1929 Wall Street Stock Market crash that took place later in the decade.
The maldistribution of wealth in the 1920’s existed on many levels. Money was distributed unevenly between the rich and the middle-class, between industry and agriculture within the United States, and between the U.S. and Europe. This imbalance of wealth created an unstable economy.Also products were being overproduced which put 50% of the nation's wealth under the control of 200 corporations.This was one of the greatest causes of the start of the Great Depression.
Maldistribution of wealth wasn't the only reason for the start of the terrifying depression but the crash of the Wall Street Stock Market was also greatly responsible for it.Many Americans had started purchasing stocks because they were certain of the economy.Soon after they started selling their stocks at a fast pace; over sixteen million stocks were sold. Numerous stock prices dropped to fraction of their value.Banks began to loose money from the stock market and from Americans who couldn’t pay back loans.Many factories lost money and went out of business because of this great tragedy.
Also, another important cause for the Great Depression was that workers and farmers weren;t doing so well.The pay of workers did not increase at all. Because of this, they couldn’t afford manufactured goods.While the factories were still manufacturing goods, Americans weren’t able to afford them, which c…

x

Hi!
I'm Sandulf

Would you like to get a custom essay? How about receiving a customized one?

Check it out