Paper 3

14. Analyse the causes of the Great Depression in one country in the Americas
David Walker
Question 14
I. Thesis: In the United States during the 1920’s the economy for the most part was alive and well, which gave it the name “The Roaring Twenties”, but it would not last forever. There were many different factors that led to the Great Depression in America but the main factor that caused it all was the Stock Market Crash in October of 1929. From this one event banks failed and people lost jobs.
II. Stock Market Crash:
A. Brokers were allowing people to buy stock on a 10% margin which meant that someone could buy $100 of stock and actually be getting $1,000 of stock.
B. This allowed the middle class citizens to play the market and have them the chance to make a good deal of money.
C. When the market crashed though it wasn’t just a few people losing money, it was a whole class of people, a good portion of whom had put most of their money into it, were left penniless.
III. Failing Banks:
A. As a result of many losing close to everything in the Stock Market Crash people were rushing to get the money they still had out of the banks. The problem was that the banks didn’t have the money because the money put into the banks was like a pool of money and whoever cashed out first got the money but if you were too late then you couldn’t get any money.
B. Therefore, the people had nothing to support them and eventually job lose occurred because businesses and industries were going through the same thing as the individuals and couldn’t pay their workers.
IV. Job Lose:
A. From the failing banks people were losing their jobs
B. The situation just kept getting worse because there was no money circulating through the economy.
C. This ended up destroying the economy and causing the Great Depression.
V. Restate Thesis

Anna N-D
#14) Analyse the causes of the Great Depression in one country in the Americas. (The US)

1) Introduction
A) Thesis: The Great Depression was caused by a number of factors, most important being the build of economic tension throughout the twenties that became clear in the stock market crash of 1929.
2) Stock market Crash of 1929
A) October 24, 1929
3) Farmers in the 1920’s
A) WWI had a high demand for farmers who began to increase production (therefore invested money). Once the war ended the demand drastically dropped, causing farmers to become in debt and have little to support themselves with for the whole of the booming twenties.
4) Building economic tensions
A) Superficial economic success
i) Booming twenties- rapid overspending that caused a drastic dip in economic investment before and after October 1929.
B) Living on credit
i) “Buy now, pay later”
C) Uneven distribution of income

Paper 3
Eli Hungerford
14. Analyse the causes of the Great Depression in one country in the Americas.
I. Introduction
The great depression in the United States was caused by several different factors, but the main event cited in common knowledge and by historians is the crash of the stock market in October of 1929. This along with bad brokering and spending processes led to widespread poverty which caused a chain reaction. It led to banks closing and to massive unemployment. Another theory is that the massive economic boom in the 1920s caused a natural recession, but because the boom was so big, the bust was big too.
II. The Stock Market Crash
A. The Stock Market Crashed on October 29, 1929. It is often referred to as Black Tuesday.
1. This caused people to lose all of their investments, going from wealthy on paper to poverty stricken.
B. Caused banks to close because people wanted to get their money out.
1. Many people lost money even though they didn’t have anything to do with the stock market because of the closing of the banks.
C. Also caused corporations to lose a lot of money which made them lay off workers.
1. This greatly raised unemployment.
III. Poor brokering practices
A. Borrowing on credit
1. People would pay for more stocks than they had money for with the money they planned on earning with those stocks.
2. This practice worked ok, but only if every stock only went up.
3. Because the stock market crashed, this practice made people much more in debt than they would have been with better brokering practices.
IV. Poor Leadership
A. President Hoover
1. President Hoover thought that all economic crises work themselves out in the end
2. Because of this philosophy, he didn’t do anything, which made things even worse.
B. Roosevelt
1. President Roosevelt put into practice the New Deal, which helped moral and the economy some, but could have helped a lot more if implemented under Hoovers Administration.
V. Conclusion

Paper 3
14. Analyze the causes of the Great Depression in one country in the Americas. (USA)
Alisha Virani

Background & Causes:
- The world- wide economic disorder following World War I
- WWI had caused vast destruction of property, loss of millions of lives, disruption of trade; U.S. Depression was part of a world-wide depression
- This resulted in a decline in demand for American goods in international trade
- US agriculture in depression before the 1929 crash
- Excessive borrowing of money during 1920s due to easy credit
- Lack of diversification in American economy—prosperity of 1920s largely a result of expansion of construction and automobile industries
- Unemployment – one in every five American workers were unemployed during depression years
- America had huge war debt and the government decided to put a high tariff on the American businesses
- Domino theory – one country after the other was doomed to fall into depression

Stock market crash in 1929:
- Over speculation in stocks caused stock prices to rise higher and higher during 1927-1929
- Then in late October 1929 investors panicked and began to sell stock in huge quantities, thus causing stock prices to fall sharply. The value of stocks fell so fast that banks, businesses and private investors lost fortunes; by mid-November 1929, stockholders had lost $30 billion.
- Due to lassiez faire and trickle down, the stock market was largely unregulated by the government
- Stockholders panicked, and millions tried to sell their stocks at once, this drove prices down even further

Depression in the United States
Thesis: After the stock market crash in 1929, the United States fell into a major economic slump. There were many causes to this downfall, including the range in wealth distribution, pressure on the growing stock market, and poor economy after WWI.

Wealth Distribution
- Caused an unstable economy
- Uneven between:
- Higher and lower classes in America
- Globally, between the U.S and Europe
- Between different sectors in the economy like agriculture and industry
- Caused the stock market to show a falsely high reading

Poor economy after WWI
- worldwide
- trade suffered
- domino effect, once one country began to experience a poor economy, other countries suffered as well
- throughout the country
- families were losing their homes
- death toll was large

Stock Market Crash
- In the 1920's the stock market was showing high readings, giving false hope
- People began to realize the actual situation the U.S. economy was facing and began to sell stocks and this led to a panic among Americans.
- Values of stocks decreased
- No one wanted to buy
- By the end of the market crash, the total loss was in the billions
- Everyone was panic, people went from wealthy to poor in a matter of days, losing their life savings.
- Jobs were taken away, work places were closed down, and the economy was destroyed

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