The Great Depression

The Great Depression

A tragic melancholy era, known as “the great depression,” spread worldwide to several locations and affected much of the world population. It had extreme causes, responses, and resolutions. Much was formulated through a new lifestyle of recovery and hard work.
The stock market crash on October 24, 1929 was “Black Thursday.” Causes of the depression were numerous. Stock prices rose to unrealistic levels on account of the crash, and inflation spread nationwide. The American industry over-expanded its production facilities, creating more products than consumers were able to purchase. As the economy grew worse, the Federal Reserve Bank insisted on collateral before offering any help. Credit served as a key factor for the American people to owe oversized debt. International trade decreased because of the previous World War I expenses, which impaired Europe’s economy. Hence they were unable to purchase as many products. Tariffs hindered t...