What {Caused|Triggered|Brought on|Prompted|Brought about|Induced|Precipitated} the Great Depression?
The Great Depression was {a global|a worldwide|a world} phenomenon that {significantly|considerably} {changed|modified} the course of
history. In America, {people|individuals|folks} {lost|misplaced} their life {savings|financial savings} when banks collapsed. The {severe|extreme}
decline in US capital triggered {economic|financial} troubles overseas. The {resulting|ensuing} German
poverty {ultimately|finally|in the end} contributed to the rise of Nazism and World {War|Struggle|Warfare|Conflict|Battle} II! What sparked the
world-{changing|altering} Great Depression?
Historians cite many contributing factors. Most agree that the downturn {began|started} with the
US {stock|inventory} market crash of 1929. {Throughout|All through} the {1920s|Nineteen Twenties|Twenties}, {rapid|speedy|fast} {economic|financial} {growth|progress|development} and
industrialization had been accompanied by {easy|straightforward|simple} lending. There was {a vast|an enormous|an unlimited} {amount|quantity} of
unsecured {consumer|shopper|client} debt. {But|However} in October of 1929, the prosperity and optimistic
{speculation|hypothesis} of the roaring twenties {suddenly|all of a sudden|abruptly|instantly|all of the sudden|out of the blue|immediately} collapsed. A Black Thursday on Wall
{Street|Road|Avenue} was {followed|adopted} by a Black Tuesday, and {investors|buyers|traders} {quickly|shortly|rapidly} {lost|misplaced} ${40|forty} billion! Many
had invested their life {savings|financial savings} and mortgaged their homes.
President Herbert Hoover failed {to realize|to understand|to comprehend|to appreciate} that his nations {economy|financial system|economic system} {could|might|may} collapse; he
believed he was witnessing a mere recession and {said|stated|mentioned} the market would naturally {recover|recuperate|get well|get better}
{within|inside} {a couple of|a few} months. He refused {to establish|to determine|to ascertain} a federal unemployment program, and
he dismissed public {construction|development|building} {projects|tasks|initiatives} as progressive {ideas|concepts|ideas} that wouldnt {improve|enhance}
the economy. Hoover was a {sort of|kind of|type of|form of} trickle-down theorist who was inclined to {support|help|assist}
{businesses|companies} {before|earlier than} unemployed individuals. He tried {to protect|to guard} American {companies|corporations|firms} with
the Hawley-Smoot Tariff, {but|however} by {reducing|decreasing|lowering} {trade|commerce} he {only|solely} worsened the faltering American
and {global|international|world} economies.
When the American {economy|financial system|economic system} sputtered to a standstill, others suffered {through|via|by way of|by means of|by}
association. America had been an {important|essential|necessary|vital} {trade|commerce} {partner|companion|associate|accomplice} for England, France, Germany,
Japan, Argentina, and Brazil. These {countries|nations|international locations} {suddenly|all of a sudden|abruptly|instantly|all of the sudden|out of the blue|immediately} {saw|noticed} sharp declines in demand for
their products. {Also|Additionally}, {all of the|all the|the entire} {countries|nations|international locations} currencies {were|have been|had been} linked {through|via|by way of|by means of|by} their adherence
to the gold standard. {Virtually|Nearly|Just about} {every|each} industrialized nation suffered wholesale {price|worth|value}
declines of 30 {percent|%|p.c} or {more|extra} {at the start|initially|firstly|at the beginning|at first|in the beginning} of the Depression.
The {1930s|Nineteen Thirties|Thirties} {were|have been|had been} {particularly|notably|significantly} harsh for farmers {in the|within the} United States. {In the|Within the} {Great|Nice} Plains,
the Depression was worsened from 1933 to 1939 by a {severe|extreme} drought {and dust|and mud|and dirt} storms.
Unable {to produce|to supply|to provide} crops, farmers {lost|misplaced} their farms and banks seized their homes. Farm
{families|households} {were|have been|had been} {reduced|lowered|decreased|diminished} to {living|dwelling|residing} in shantytowns, which Hoovers critics {called|referred to as|known as}
Hoovervilles. These farmers and {other|different} destitute {citizens|residents} turned to bartering for {basic|primary|fundamental}
{goods|items} {in the|within the} absence of cash.
Farmers losses {increased|elevated} {bank|financial institution} failures in rural areas, {and urban|and concrete} {bank|financial institution} failures had already
been escalating rapidly. When {stock|inventory} {investors|buyers|traders} {lost|misplaced} their capital, banks {started|began} to fail at ten
{times|occasions|instances} the {1920s|Nineteen Twenties|Twenties} rate. {Nine|9} thousand banks failed {during the|through the|in the course of the|throughout the} 1930s. And when banks
failed, {customers|clients|prospects} {lost|misplaced} their {savings|financial savings}! By {the end|the top|the tip} of Hoovers {term|time period} in 1933, {Americans|People|Individuals} had
${140|one hundred forty|a hundred and forty} billion {missing|lacking} from their accounts. The {bank|financial institution} failures {limited|restricted} new enterprise and
{growth|progress|development} {across|throughout} the country. Banks {started|began} to {limit|restrict} how {much|a lot} {money|cash} {customers|clients|prospects} {could|might|may}
deposit, and loans {became|turned|grew to become} scarce. Hoover was not about to win a second term.
After Franklin D. Roosevelt was inaugurated in 1933, he instituted a {bank|financial institution} holiday. Banks
would {rest|relaxation} for {several|a number of} days {while|whereas} Congress {passed|handed} the Emergency Banking {Relief|Aid|Reduction} Act to
stabilize the banking system. {The new|The brand new} President {told|informed|advised|instructed} his nation, {The only|The one} {thing|factor} {we have|we now have|we’ve|we have now|we’ve got|now we have}
to {fear|worry|concern} is {fear|worry|concern} itself.
Roosevelt tried {to end|to finish} the {Great|Nice} {Depression|Melancholy|Despair} by creating dozens {of government|of presidency} {agencies|businesses|companies}
to {support|help|assist} the people. Unemployment fell by {two}-thirds {during|throughout} his first presidential term.
If it werent for his {programs|packages|applications}, {surely|certainly|absolutely} many {more|extra} {people|individuals|folks} would have died from {starvation|hunger}
and lack of shelter. {Still|Nonetheless}, {daily|every day|day by day|each day} life remained precarious {for most|for many} {Americans|People|Individuals} {until|till} the
{depression|melancholy|despair} ended six years later with Americas involvement in World {War|Struggle|Warfare|Conflict|Battle} II.