The Wall Street Crash and the Great Depression Essay Example

realized their shares were becoming worthless and would soon be worth less than what they paid for them. This realization led them to sell their shares, causing a rush of panicked selling. The lack of demand for shares resulted in continuously falling prices. The stock market crashed in just 10 days, with over 50 million shares changing hands. During this time, shareholders sold their shares at any price rather than having nothing; resulting in a loss of $8 million by the end of October. To worsen the situation, mass overproduction caused prices of goods to drop rapidly, resulting in less profit due to declining demand.

This resulted in companies having to dismiss employees and reduce salaries, leading to a decrease in demand and further job losses. By the conclusion of 1929, more than 60 million individuals were jobless and surviving on a yearly income of $2000. This left many individuals starving and incapable of purchasing necessities, causing families to undergo anguish and near destitution.

The Great Depression, a period of economic downturn in the United States from 1929 to 1941, intensified and drew attention to the issue of unemployment which had already been a concern since 1926. The situation significantly worsened during this time with far-reaching effects on the country's economy.

In 1932, the economy suffered a significant downturn resulting in approximately 20,000 businesses going bankrupt. Additionally, unemployment rates increased from 1.5 million to 12.8 million. Farmers were hit particularly hard as their income plummeted by 50% and they struggled to make mortgage payments which ultimately led to land loss.

During the Great Depression, charities provided food and soup to families who were left homeless and impoverished due to

job loss. In 1932, suicide rates dramatically increased with 23,000 individuals affected, leading those dissatisfied with the president at that time - whom they held responsible for their struggles - to name shanty towns "Hooversville". However, that same year saw Franklin D. Roosevelt elected as president with his New Deal program aimed at restoring public trust in government and revitalizing America from depression. Roosevelt's leadership brought hope for people.

In conclusion, I hold the view that the United States could have experienced a period of depression regardless of the occurrence of the crash, due to inherent fragility in its economy. Despite not being universally prosperous and with unemployment figures already on an upward trend since 1926, it was ultimately the weakened state of the economy which acted as the main catalyst for this downturn. Although not solely accountable for this event, the impact of the crash certainly served to intensify its severity beyond what may have been expected otherwise.