Causes of the great depression, and the reaction of the surrounding countries.

The Great Depression was a terrible event and caused massive unemployment. Some stock purchasers went into gigantic debt, some were even so bad that people committed suicide because they believed they would never be able to pay off the money that they owed. The Day was October 24th, 1929 when the stock market crashed, and is also know as "Black Thursday". The black part means that the stocks went into the negatives, and when stock prices are in negatives they are colored black.

$ 7.5
$ 5.4
$ 2.6
$ 0.8
Medical Care
$ 2.9
$ 1.9
$ 1.2
$ 0.8
Value of shares on the NYSE

Another cause of the Great Depression was the increasing amount of bank failures, which were caused because of people depositing uninsured checks. Because of this banks stopped lending as much money, which caused people to not be able to buy as many things. People started to lose jobs because of the reduction in items that were being produced. More unemployment led to less spending, which started this cycle all over again.


Three problems of the Weimer Republic that categorized it as a weak democracy were:

  • The Weimer Republic was categorized as a weak democracy because of the Weimar Germans getting defeated in World War 1
  • The Constitution did not provide a system of checks and balances like America did, therefore it started a dictatorship in Germany
  • Leading moderate parties did not cooperate well with each other, which caused people to revolt

What event marked the beginning of The Great Depression?

The event that marked the beginning of the Great Depression was the crash of the stock market, which was also was called Black Thursday(Schenk). An event leading up to Black Thursday was that almost 13 million shared of stocks were traded(Schenk). On Black Thursday the stocks were dropping so quickly that the ticker could not keep up with it. At the end of the day it was lagging and it was not able to show the most recent data. It was one of the worst days ever for all those who owned stocks. Even though the over all prices only went down about 2.5 percent, the New York Times measured it by an index of 50 stocks, which caused the market to hit the bottom on July 7, 1932(Schenk). Capital is the tools needed to produce things of value out of raw materials. Some common examples of capital are factories and buildings. Most of the capital in the United States was represented by stocks. Corporations owned capital, and owner ship of the companies took the form of stocks. Every one thought that the stocks were a sure thing until 1929, when stocks started down till about 1932 when they hit the bottom. Demand for goods went down because the people thought that they were poor cause of there loss in stocks. No one could create new investments through the sail of stocks because no one would buy the stocks. In the banking system the banks tried to collect the loans made to the stock market investors but their holdings were worth little to nothing at all. President Franklin D. Roosevelt closed all of the banks in the United States for three days. He did this till the people regained their confidence in the banking system and to give the banks a break until he felt that they were once again able to perform their function in society.

Two events that lead to the stock market crash of 1929

1) In the 1920’s, the stock market started to soar and citizens all started to purchase stock. This caused the market to dramatically increase in value. Because of all the purchases, the stocks started being sold for more then they were actually worth. In other words, people who bought stock, were losing money. In 1929 the stocks got up to the 452 point mark (Ohio History Central).

2) At the peak of the inflation in stock, the big investors who owned lots of stock realized the inflation and backed out because they realized they didn’t stand to make a profit. This caused the market to drop 31 points in one day (Ohio History Central). The stock market dropped so much that it caused the people who bought stock to go into debt and many killed themselves because they thought they would never be able to pay off their debt. This started the Great Depression and caused America to change dramatically.

external image stock-market-crash.jpg external image stock_market_crash.jpg

What were Britain, France, US, and Germany's response to The Depression?

The Great Depression took part not only in the U.S, but it also had effect on many other countries in the world.
Now that
America didn't have as much money to trade, it caused other countries to decline because of the
lack of trade. This caused other countries to lose money, not letting them trade with not only America, but
also many other countries in the world. This caused their
banks to collapse and causes massive amounts of
poverty. All these concepts made these countries feel weak and powerless.
britain-flag.gifexternal image Flagbig.GIFgermany-large-flag-gm.gifflag3.jpg
Dark colors: Unemployment(in thousands) Light colors:Decline in production by over 30%

How and Why The Great Depression Ended

During WW1 Germany seemed to have more power than any other country, that is until the American economy began to boost itself back up again by making supplies for other countries. These countries paid America massive amounts of money so they could have good guns and other war necessities. Soon after making supplies for other neighboring countries, America eventually entered the war. War jobs became very common such as women becoming nurses and men going into the military, which helped some of the 17 million people living in poverty. Because people were getting jobs, it became easier for people to buy things, which helped more people gain jobs at stores and 000 other places. Soon the economy was boosted back up again.

Multiple choice
-What is capital?
A- Raw materials
B- Tools used to produce products out of raw materials
C- The main city of a state
D- A term used to talk about shares of stock

Work Cited
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Roosevelt Papers. Eleanor Roosevelt National Historic Site, 5/7/10. Web. 7 May 2010.

Eyck, Erich. "Fall of the Weimar Republic." A history of the Weimar
Republic. N.p., n.d. Web. 11 May 2010.

"Great Depression and New Deal, 1929-1940s."
HIST 1302 Online
United States History. HIST 1302 Online, n.d. Web. 12 May 2010.

Kelly, Martin. "Top 5 Causes of the Great Depression." American
History., 2010. Web. 11 May 2010.

Lamb, Annette, and Larry Johnson. "Words 2 Explore." The Great
Depression. N.p., 9/02. Web. 7 May 2010.

Nelson, Cary. "The Great Depression." M dern American Poetry. N.p.,
n.d. Web. 11 May 2010.

Schenk, Robert. "A Case of Unemployment." The Great Depression. New
York Times, 2007. Web. 6 May 2010.

"Stock Market Crash of 1929." Ohio History Central. N.p., 1 1 2005. Web. 11 May 2010.

"Stock Market Crash." The First Measured Century. PBS, n.d. Web. 7
May 2010.

Hanes, Sharon, and Richard Hanes.
The Great Depression and New
Deal Almanac. Minnesota: Thompson Gale, 2003. Print.

Hanes, Sharon, and Richard Hanes.
The Great Depression and New
Deal Biographies. Minnesota: Thompson Gale, 2003. Print.

Hanes, Sharon, and Richard Hanes.
The Great Depression and New
Deal Primary Sources. Minnesota: Thompson Gale, 2003. Print.