1 of 26

Write now Article Tools

It was the greatest economic catastrophe in modern times up until that time. A few years earlier, America was prosperous: jobs and money as well as economic wealth was plentiful. Wild parties, hot Jazz, overflowing champagne, hard liquor and beer, which was actually illegal in most parts of the United States-it was still Prohibition-was also plentiful. It was the Roaring Twenties, and roar indeed it did. Things never looked better.

A few years later, millions were out of work. Men who once had decent, good-paying jobs were now out of work and living on the streets in abject poverty, reduced to selling apples for five cents. In fact entire families were evicted and put out on the street along with their furniture and other personal effects. There were no housing laws designed to protect impoverished families who faced eviction then. People lived in makeshift houses made of wood or cardboard or in entire shantytowns. Ragged men, women and children spiraled around buildings for blocks, waiting for a hot meal which they could no longer provide for themselves. It was the dark period called the Great Depression.

The Great Depression, which developed into a worldwide economic downturn, lasted from 1929 to roughly the late 1930's-early 1940's around the early days of World War II. It was the greatest economic catastrophe of the 20th Century. It originated in the United States on Tuesday, October 29,1929, commonly called "Black Tuesday" by historians because it was a dark day for the financial district, known worldwide as Wall Street, which in time would be a dark time for the whole world. Ironically enough, the New York Times of October 25,1929 reported that the Stock Market never looked brighter. They were tragically mistaken.

There have been differing and conflicting theories on how the Depression actually began, but the general consensus seems to agree that the major reason why America plunged into economic devastation is mainly because of greed and economic mismanagement. Among other factors, many people at the time bought items on credit. Others would put their money on the Stock Market as if they were playing a game; they often put down more than they could afford to lose or spend.

Many at that time knew little or nothing about the Stock Market; most investors were basically common laborers with little or no formal education, not professional businessmen. In effect the Great Depression was an overinvestment of in heavy industry capacity compared to wages and

• 1
• 2
• 3
• next page >>

Add your voice

Know something about American history: The causes of the Great Depression?
We want to hear your view. Write now!