When Was the Great Depression?
When was the Great Depression? The answer is somewhere between 1929 and 1939. The economic depression lasted for three years and was a worldwide phenomenon. The stock market in the United States collapsed during this time and economic contagion spread across the globe. The global economy became aware of this crisis on Black Tuesday, October 29, 1929. In a few short years, the economy suffered more than one-third of its value, and more than 80% of the population’s savings went into banks and other financial institutions.
This monetary policy, however, was only a part of the cause of the depression. In fact, the stock market crash was not the only factor. The early decrease in US output was the result of strict US monetary policy that regulated excessive stock market speculation. While the stock market was a major source of excess, the Federal Reserve boosted interest rates in 1928 and 1929 to help news247 com the economy recover. This was a disastrous policy and many people still wonder how the country recovered from the Great Depression.
The crash caused panic and bank runs, and stock prices fell by over 14 percent. The lack of gold reserves fueled inflation, and people began burning barrels of money to keep warm. During the Great Depression, paper money became worthless, as the United States faced a massive economic crisis. A lot of people ended up with nothing – nearly half of all Americans were out of Worldnewsite work. While the depression lasted for many years, it led to the end of the American Dream. In fact, nearly half of the country’s banks had failed and fifteen million people were unemployed.