Great Depression 1
A Look at The Great Depression
Student Name
School
Great Depression 2
The Great Depression was one of the worse economic times in US history. It
lasted from 1929 until the start of World War II in 1945. During this time people were
faced with unemployment, homelessness and starvation. There are five main causes of
the Great Depression. The first cause is the false sense of prosperity people had and the
way they chose to live in the years leading up to the Great Depression. Then there was
the stock market crash and the banking crisis. This was followed by mass unemployment.
Finally, the Republican Party, led by President Herbert Hoover contributed to the Great
Depression by doing nothing, which also led to him becoming so unpopular. The faces of
The Great Depression included the families living in Hoovervilles, the people standing in
breadlines, and riding the trains around looking for jobs.
The first cause of The Great Depression started years before The Great
Depression. The era known as the Roaring 20s was a time of great prosperity for most
people. Many people had become wealthy with the stock market following the end of
World War I. In widespread use of electricity in homes led to the sale of electrical
appliances, which people bought up quickly. The Ford Motor company mass produced
the first cars. Overall industrial production increased 25% during this era (Money-Zine
2007). The buying fenzy was further encouraged by banks loosening their credit terms,
and allowing people to borrow much more than they could afford (Money-Zine 2007).
When The Great Depression finally hit, many people and businesses were already
significantly in debt due to the years of overspending.
The second main cause of The Great Depression was the Stock Market Crash of
1929. This is known as the kick-off of The Great Depression. The Stock Market crashed
Great Depression 3
References
Faux, M., & Miller, M. (Eds.). American History Desk Reference. (1997). New York:
McMillian
Lesueur, Meridel. “Women on the Breadlines” (1932). Retrieved on Sept. 6, 2009
from: http://grossmont.edu/veronica.bale
Schoenherr. “Causes of the Great Depression.” (2002). Retrieved on Sept. 6, 2009 from:
http://history.sandiego.edu/gen/20th/1930s/depression-causes.html
“Stock Market Crash of 1929.” (2007). Retrieved on Sept. 6, 2009 from Money-Zine:
http://www.money-zine.com/Investing/Stocks/Stock-Market-Crash-of-1929/
Rothbard, Murray. America’s Great Depression. (2008). Retrieved on Sept. 6, 2009 from:
http://www.lewrockwell.com/rothbard/rothbard184.html