Why did the US suffer an economic depression in the 1920’s

Topics: EconomicsTrade

Type:

Sample donated:

Last updated: November 10, 2019

In the 1920’s life in America was good this was because of several different reasons, the one reason was immigration. Thousands of people from Europe and different places came to make a better life, ether they where poor and wanted to live the American Dream, where everyone profited.

This didn’t go well as over 860,000 people where coming in so the had to put laws on, the 2 main laws where ‘immigration act’ of 1917 and ’emergency quota act’ of 1921.This made it that no one over 16 who couldn’t read was let in, and that only 357,00 immigrants where let in. The immigrants who did get in weren’t treated good, many where treated like slaves and died of dust poising in the home, some did get good jobs with about $50 a week. Anti-groups where made like the Klu-Klux-Klan and WASP’S (White Angelo Saxon People) these where made to protest about different races and black.Another reason was ‘Ford’ and his assumedly line, this made it easier and faster to make more cars, instead of 1 car a week with many people doing different parts this was a quick way as the car moved in front of them, different companies did this and made millions but kept doing it until everyone had a car so no more where needed but they kept making and not selling this lead to people loosing jobs so they didn’t have the money to buy food, so the shop lost money and he fired his staff and his went on.Many companies lost money and closed down as they had overproduction.

Don't use plagiarized sources.
Get Your Custom Essay on "Why did the US suffer an economic depression in the 1920’s..."
For You For Only $13.90/page!


Get custom paper

Another reason was because of trade with other countries was difficult as there was an import / export tax with high tariffs on. This stops them selling good to Europe, Asia and Africa. Also that the other countries where still paying war paybacks. A minor reason was president Hoover, he told people that riches where around the corner for everyone and after this he sat tight and waited as people where loosing money and he did nothing.He though the good times where coming again and just left the country in ruins. The main reason of the depression was the Wall Street crash, the day that millions and millions where lost. Nearly every American had stocks and shares with companies, they did this by a way called ‘On the margin’ where they pay people back the money later when they make it with the share.

On Thursday 24th October 1929 shares fell faster and lower than any other time befor and since.For this it was named ‘Black Thursday’. Shares went down over 200% and every second it dropped, people lost all there money. Companies like Radio where c505 and on that day they when down to c28, even worse that people had got the on the margin and they wanted the rest of there money back and the peple didn’t have any so they had to sell there cars, homes nearly everything to pay them back.

Choose your subject

x

Hi!
I'm Jessica!

Don't know how to start your paper? Worry no more! Get professional writing assistance from me.

Click here