The Great Depression. How Did The Great Depression Come About?

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The Great Depression
How Did The Great Depression Come About?
Great depression is believed to have originated from United States in 1929. The American economic peak and dream had come to a halt. This followed the crash of stock exchange market of Toronto, Montréal and New York. The whole North America was affected. The great depression caused a lot of layoffs, bankruptcy, increased poverty rate and climatic disaster. At the end of the great depression, the affected countries were left counting on prevailing miseries beyond their control. In Canada, the attitudes toward the poor really changed. Due to this new political parties were formed with new policies of combating economic problems.
As the stock market crashed, several people tried to sell their stocks to ensure that they recovered their wealth. In contrast, nobody was willing to purchase these stocks. This later converted the stock market into a source of bankruptcy. The crash was just the beginning of the great depression. Banks which invested heavily into the stock market were rendered bankrupt. This later contributed to their collapse. As banks were collapsing, several Americans feared they would lose their savings. Therefore, they rushed into banks to withdraw all their savings. The high rates of withdrawals later forced banks to closedown. The individuals who seldom reached to their banks found themselves bankrupt. Just like banks, industries and businesses were also affected. They lost most of their capital in banks and stock market and could not sustain high number of employees. This forced them to cut down the number of workers and also reduce their wage rates. In response, consumers refrained from purchasing lux...