The crash of the stock market in 1929 ushered in the Great Depression. There were easy-money policies that caused the stocks prices to go very high and this led to a big speculation that made people invest all their money in the stock market.
Eventually, the price of the stocks went down sharply and people started selling their stocks in panic.
This finally led to a decrease in the production of products and ultimately a total reduction in the labor force.
People lost jobs and could no longer pay for bills and items bought via installment strategies. Inventory increased the more while unemployment shifted upwards becoming a big challenge of alleviating the economic situation.
The people did not have a source of income and suffered a great deal.
The country’s economy suffered too” The gross national product declined from the 1929 figure of 3,828,000,000 to ,760,000,000 in 1933” (Great Depression, 2008, par. The suffering led economic hardships as well as physical, emotional, emotional and cognitive sufferings to the people because the Depression was a big tragedy hence they exhibited signs that people going through other crises exhibit (Barr, 2005).
Many believe that that the depression was caused by the U. The economic devastation of the 1920s led to the Great Depression and brought a tragedy for the whole society.
Nonetheless, there is no consensus on its cause as other factors are also acceptable.
Well, it is very interesting to learn the causes that led to such a downfall of the economy.
The amazing story is the fact that the economy finally recovered from a contraction of that nature.