Economic Effects Of The Great Depression - 1142 Words

Economic Fallout On October 29, 1929, Black Tuesday, the United States of America’s stock market crashed causing the Great Depression. The Great Depression of the 1930’s greatly impacted millions of people’s lives around the world. The Depression caused millions of people to lose their homes, jobs and food for their families. The events causing, during, and after the Great Depression will forever be an important part of American History that will never be forgotten. The events that leading up to and caused the Depression date all the way back to World War I. After a small economic downfall after the First World War, the economy began to boom in 1924 . The United States’ economy boomed until 1929 and was at an all-time high in 1928 due to the lowering of taxes . One of the many reasons that caused the Great Depression was an overproduction of goods. During World War, the consumption of goods was unbelievably high. When the war ended the United States did not slow down on production and eventually had too much product for the demand. With the numbers of products being sold, no one needed to buy anything because they had already stocked up on everything needed. A Second reason for the Great Depression was the lack of foreign trade around the world. In 1930, President Herbert Hoover passed the Smoot- Hawley Tariff Act . The Act increased Tariffs to such a high rate, that no countries would trade with the United States . â€Å"Internati onal trade has fallen by two-thirds sinceShow MoreRelatedThe Effects Of Global Economic Crisis On The Great Depression Of The 1930 S876 Words   |  4 PagesWhile the causes of the global economic crisis are still widely debated, a vast majority of economists agree that it was the worst global recession since the Great Depression of the 1930’s. 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