The great depression was the worst economic slump ever in Canada's history, and one that spread to virtually the entire industrialized world. The depression began in early 1930 and lasted for about a decade. Many factors played a role in bringing about the depression; however, the main cause for the Great Depression was the combination of the greatly unequal distribution of wealth throughout the 1920's, and the extensive stock market speculation that took place during the later part that same decade. In my following essay I would discuss about the effect of the great depression and how people dealt with it.
The stock market crash was one of many roots of the depression. The market crash cause many people to slide into the life of depression. The world in 1920 was really rocking. During this boom period, wages increased along with consumer spending, and stock prices began to rise as well.
English: Crowd gathering on Wall Street after the ...
A solemn crowd gathers outside the Stock Exchange ...
Great Depression Food LineBillions of dollars were invested in the stock market as people began speculating on the rising stock prices and buying on margin. Economists believing that the up rise would continue. The enormous amount of uncountable consumer debt created by this speculation left the stock market basically off-balance. Many investors, caught up in the race to make bundles of money, invested their life savings, mortgaged their homes, and cashed in life saving investments such as treasury bonds and bank accounts. The demand of stock now was over supply, and the market was artificially high, it was the matter of time until the balloon burst. Finally, in October 1929, the buying break began to decrease, and was followed by a savage selling craze. On Thursday, October 24, 1929, the bottom began to fall out. Prices dropped expeditiously as more and more investors tried to sell their holdings. Although the stock market...