Essay On The Causes And Effects Of The Great Depression

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“The overall size of the American economy, measured by gross domestic product, sharply declined following the crash on Wall Street—from $103.6 billion in 1929 to $66 billion in 1934 (Great Depression). The Stock Crash of 1929 had many effects to the World and how it changed overtime. There were many long and short term effects, like social, political, economic and cultural, that the Stock Crash of 1929 contributed to how The Federal Deposit Insurance Corporation was created. Also how banks began to fail by 1932 and 1933. The 1929 depression was so wide and deep because of the international economic system. It ushered a protracted period of economic decline in much of Europe, North America, and Asia. The stock market crash made a sharp decline in U.S. stock market values of October 24th, called Black Thursday of 1929 (Stock Market Crash Of 1929). Which lasted about ten years. This also contributed to the Great Depression of the 30’s. It all began in the mid 1920’s…show more content…
After the crash, the banks could only honor ten cent to each dollar (Causes and Effects of the 1929 Stock Market Crash). The reason for this is because they used depositors savings without their consent to purchase stocks. Another cause that led to The Great Depression (Causes and Effects of the 1929 Stock Market Crash). This was a short and economic effect to the crash. The banks began to fail by 1932 and 1933. President Roosevelt closed all the banks in the United States for three days (“Stock Market Crash”) . Depositors had 140 billion taken from their accounts when the banks failed , then checks became worthless (“Stock Market Crash”). Some banks cautiously reopened again but had strict limits on withdrawals (“Stock Market Crash”). Soon bank systems went back to full throttle (“Stock Market Crash”). This effect was a short economic and social effect to the

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