Great Depression Dbq

What Caused the Great Depression?

The Great Depression was a devastating tragedy that changed our economy. In the U.S, the Great Depression shortly happened after the stock market crash in 1929. This sent Wall Street into a great panic and wiped out millions of investors. Over the years, consumer spending and investments decreased. This caused declines in industrial output and raised unemployment as failing companies laid off workers. By 1933, 13 to 15 million Americans were unemployed and half the country’s banks had failed. However, the economy did not fully turn around until after 1939 during World War II. The three main causes of the Great Depression were the stock market crash, overs spending, and the overproduction of goods. In 1929,

For example, In Document five it states that in 1929, a collapse of the American Prosperity happen. Which means people was putting a lot of their money into securities hoping to the make the stocks rise. People began gambling which made a lot of them go into debt (Harry J. Carman and Harold C. Syrett, A History of the American People, 1952). Also a lot of people were speculating, meaning investors was putting money towards stocks hoping to gain, but risking a loss. By 1931, six million Americans could not find work. Industrial production dropped by half, breadlines, soup kitchens, and the homeless shelters became popular in America’s town and cities. In Document six, it explains how consumers have to reduce purchases and cut back on spending habits and how farmers struggled not being able to afford to harvest their crops( William E. Leuchtenburg, The Perils of Prosperity, 1914-1932, 1958). Also in Document seven, and eight it states that, people and families have to stretch and makes ends meet on what they have and also finding a way to make things cheaper (Paul Blanshard, “How to Live on Forty-six Cents a Day,” The Nation, 1929/ Fortune, February

The overproduction of goods is caused by products not being brought, businesses not cutting back on making products, businesses laid off workers, and unemployment. For example, if someone is unemployed than he or she cannot buy products that were being produced. If nothing is being brought than businesses had to lay off workers. Since people were getting laid off family income was getting lower and lower. According to Document one, banks panics began when investors demanded their deposits in cash (AmeriTrust Co. Cleveland). This swept throughout the U.S and by early 1933 thousands of banks closed. In Document ten and eleven Americans were getting caught up with financial problems and could not manage it all and they only brought what they could afford only (Elmer Davis, “If Hoover Fails,” Harpers Monthly, March