The Economic Causes: The Downfall Of The Great Depression

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The economic downfall known as the Great Depression began in the 1930’s. This was a period in history that came without warning. Folks thought they were financially stable and all at once stocks declined, jobs were lost and supply and demand disappeared. The one question that is constantly wondered is, what caused this tragic event? The top resources that caused the Great Depression were speculation and installment because of the fast decrease in stock, income maldistribution due to no money and job problems and overproduction of products due to the fact no one was buying any product, making a business go broke. Speculation and installment took a great part in the effect of the Great Depression because of how fast the stock declined and caused…show more content…
Many began gambling on stocks in much the same fashion that gamblers wagered on roulette or horse races. Security was gaining more of a profit than businesses because of the outcast of behavior from everyone losing money so fast.That was because speculation and installment have everything to do with the stock. It goes along with investing in a risky stock to paying the debt of a stock. The whole point of a stock is to take a risk in a company and many found taking that risk was a poor risk that caused them to lose a large amount of money. As the New York Times discussed in an article, people began to realize they put too many eggs in one basket and without warning many were losing more money than they had to begin with( Doc 3). A stock investment that once seemed a great idea, ended up to be one of the worst mistakes made. The thought of losing money became such a tough subject that people began…show more content…
This was a subject that affected the jobs. Not enough money was being made, by parents due to the fact no business needed the help or could afford the extra help. As Paul Blanshard discussed these huge families could not get enough of food on the table because the parent couldn't afford all these expenses. As Mr. Blanshard explained the father, who is a stripper in a cardin’ room only gets $12.85 a week and the money only receives $9.95 a week as a weaving room. With all the other expenses in their life, they just about have enough to put food on the table. This is sacrifices many families had to face. The fact that some days some people in the family might have to give up their food to allow their kids to eat. The thought not having enough money to feed a family feared many. This then caused more people to be poor than rich. The ability to make more money was not even in thought during the Great Depression. This relates to the Great Depression because this was a time when people had to make sacrifices to help support their family due to the fact the parents couldn’t bring enough money home. No one buying goods from business causing the wage of the parents to go lower and lower until the business starts making a good profit again. Most people were forced to go into poverty, many never saw this day coming. As the data showed, in 1929

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