The Great Depression Was An Economic Crisis - 2135 Words

The Great Depression was an economic crisis that occurred from 1929 to 1939. During The Great Depression an estimated 13 to 15 million Americans were unemployed. From 1929 to 1939 America was plagued with failing banks and many business becoming foreclosed. The stock market crash would be the first sign of The Great Depression followed by many failing banks and businesses. Presidents Herbert Hoover and Franklin D. Roosevelt both took various political efforts to aid the American economy. After the end of World War I, an increase in people investing in the stock market began. With more people willing to invest in the stock market, prices of stocks began to rise in 1925. In 1928 a stock market boom occurred with people hoping to get rich†¦show more content†¦With more people investing in the stock market, more buying stocks â€Å"on margin† took place, which meant more money was lent out. Many businesses and banks decided to invest in the stock market also, but the prob lem was that banks were using their customer’s money, without the customers being aware of this, to invest in the stock market. First signs of economic trouble were shown when steel production, house construction, and car sales went down in early 1929, but very few people noticed this as a problem at the time. In March of 1929, the stock market did have a small crash, but Charles E. Mitchell essentially stopped the crash by continuing to loan out money even though many broker were issuing â€Å"margin calls. After Mitchell’s actions the stock market began to climb once more. Some economists were giving warning of a possible crash in the future, but they were all dismissed as many people did not want to believe it, especially with the price of stocks soaring shortly after the small crash. However these few economists were right about a future crash, throughout the month of September stock prices fluctuated and eventually crashed on Black Thursday (October, 24, 1929). O n Black Thursday, investors quickly sold their stocks as the price of stocks plunged. Since more and more people were selling their stocks, the price of stocks fell so rapidly that the stock ticker could not keep up with the swiftly descending price of