The Great Depression began with the stock market crash of 1929 and was made worse by the 1930s Dust Bowl.
I say there’s definitely a possibility because we still have stock markets and you honestly never know what’s going to happen in stocks.
Im taking business and marketing this semester and we learned a lot about stocks and the risks. The great depression came up and it was very interesting to see something go from 0-100 so fast.
By then, production had already declined and unemployment had risen, leaving stocks in great excess of their real value. Among the other causes of the stock market crash of 1929 were low wages, the proliferation of debt, a struggling agricultural sector and an excess of large bank loans that could not be liquidated.
Because many people have learned about the risks since the great depression I do think the chances of something similar to occur again will be less likely or not as bad and huge as it was then.
The Great Depression still affect us in many ways today. America expanded government intervention into new areas of social and economic affairs and the creation of more social assistance agencies .The government took on greater roles on the everyday social and economic life of people.
I agree. Just even looking at this Covid crisis, stocks dropped dramatically, but even by now, many have recovered or are recovering. I think we have learned from the Great Depression that if everyone panics and sells, prices fall and everyone loses. I think there are more people that understand that today and are willing to leave their stocks so that there isn’t massive selling and devaluation. Many people seemed to see last March as an opportunity to buy cheap stocks. I think investor confidence has weakened but is still there. Whereas with the Great Depression, investor confidence pretty much disappeared.
What about the other causes? Do you think banks can fail like they did? Can we get into a situation of overproduction? Do countries want to raise tariffs?