Causes of the Great Depression Document Based Essay Directions: The following assignment requires you to answer the questions below and to construct a coherent essay that integrates your interpretation of Documents A-J and your knowledge of the American economy during the 1920's. You must use and cite at least 50% of the documents for full credit. How did the six factors of 1. Problems for Farmers, 2. Uneven Distribution of Wealth, 3. Overuse of Credit, 4. Problems for Business and Industry, 5. Crash of the Stock Market, and 6. Run on the Banks cause the Great Depression? Be sure to explain all six causes AND identify which one you believe was the biggest cause and why. Document A Document B The final development that set the stage for the collapse of American prosperity in 1929 was the speculative boom that developed with increasing intensity in the years after 1927. As more investors put their money into securities (stocks) in the hope of making a quick profit on a speculative rise in stocks, the character of the New York Stock Exchange was fundamentally altered. Instead of serving primarily as a device for the accumulation of capital of industrial enterprises, the exchange became a betting ring where people gambled on stocks in much the same fashion that gamblers wagered on roulette or horse races. Security prices were forced up by competitive bidding rather than by any fundamental improvement in American corporate enterprise.
- Harry J. Carman and Harold 0. Syrett, A History of the American People, 1952. Document C Source: Table constructed from data In Frederick Lewis Allen, The Big Change, 1952 US Family Distribution of Income (1929) Annual Income Percent of Families Earning this Income Over $10,000 2% $5,000-$10,000 6% $2,000-$5000 32% $1,500-$2,000 18% $1,000-$1,500 21% Under $1,000 21% Document D [Easy] margin requirements permitted the investor to enter the market on a shoestring. By buying on margin,
You've reached the end of your free preview.
Want to read all 8 pages?
- Spring '19
- Great Depression, Wall Street Crash of 1929, Document Based Essay