The Rise Of The Great Depression - 1217 Words

The longest, and most widespread economic nosedive that the post industrialized world has ever seen, The Great Depression. This depression affected nearly every country of the world, touching American society for roughly a decade from late 1929 thru approximately 1939. Many have accredited the infamous stock market crash of October 24, 1929, as being the singular cause of the Great Depression, which was not entirely true. While the stock market crash was highly related to the great loss of paper wealth, and the devastation of American optimism, it alone was not the cause. Following the crash Americans of all wealth classes simply stopped spending, the tightening of these purse strings crippled the economy. Additionally, the weak†¦show more content†¦The market was in a state of fluctuation, plunging, pausing and then finally plunging to the lowest it had ever been by the summer of 1932. The plummeting Stock Market rates did not create the depression, its effects did. As a result of the Stock crash American consumers, simply stopped spending money, their former â€Å"fancy and free† way of life had been replaced with immense caution. Consumers were leery of spending money in the uncertain economy, the pessimism of consumers left rippling effects. Previously the market for new innovations was skyrocketing, Americans were buying like never before. The buying surge gave revenue to all industries, ranging from manufacturing companies to the suppliers of raw materials such as steel and coal. Consumers and manufactures thought that this surge could perpetuate endless revenue, the blind optimism led to great letdown. Once the Americans with buying power had satisfied their needs, as well as the limits of the household income had been met, the buying slowed. This decrease in buying, led directly to a decrease in manufacturing and reduction of price for items previously manufactured. Now that the consumer market was considerably smaller, companies wer e forced to lay off employees, fore without new revenue payroll was a luxury that could not be afforded. Initially, the middle class working Americans were hit the hardest