The Causes And Solutions Of The Great Depression

March 4, 2000 The Causes and Solutions of the Great Depression The collapse of the stock market began on October 24, 1924. Approximately thirteen billion shares were sold. The collapse was devastating and long-term. On Tuesday, October 29th, more damage was d wizard. It became known as Black Tuesday, and roughly sixteen million more shares were sold. Many businesses closed, and millions of people were left field unemployed. Wages for the employed dropped drastically. The value of cash fell as the demand of goods decreased.

In John Kenneth Galbraiths book, The Great Crash 1929, one of the most renowned attempts to explain the damage of the 1929 crash was made. He claims there are five important factors: 1)         The consumer gods market was limit by an inadequate dispersal of cash flow. Peoples incomes were non elevated enough to purchase the goods being manufactured.

2)         Corruption and fraud was uncontrol direct in big business and in the stock market. palisade Street was depending on useless paper that had no money behind it.

3)         The banking structure collapsed after making too loans that could not be called in, resulting in a loss of peoples savings.

4)         The linked States was enjoin in further debt when loans of large amounts of money to foreign nations could not be repaid.



High trade barriers in the United States led to the damage of foreign markets because they were not able to send their exports to the United States.

5)         In the years prior to the Stock mart Crash, discipline about the economy was not nearly as lucubrate and profound as it is today. Economists of the day were not able to scream economic trends in industry, investment, consumer spending, and other factors that would have allowed them to identify a potential crisis. This is known today as The Stick Market Crash...

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