The Great DepressionWhen a person hears the words "The Great Depression", almost everyone thinks of the worst economic period in the United States. The Great Depression began in the late 1920s and continued until the early 1940s. It is known as "the deepest and longest-lasting economic downturn in the history of the Western industrialized world" ( History.com). The events of the Great Depression teach us that government intervention is the deciding factor in determining whether an economy will grow or continue to contract during a recession. The 1920s, also known as the Roaring Twenties, were a fantastic time for the economy. People bought extravagant things like automobiles and invested in the stock market to make a lot of money. Most of the new, expensive things people bought were on credit. People even bought stocks “on margin,” that is, with borrowed money. All this extravagance would soon disappear and everything people bought on credit or margin would soon come back to haunt them. October 29, 1929, what would later be known as “Black Tuesday,” was the day the stock market crashed and the Great Depression broke out. begin. Stock prices had continually risen to a point where it was no longer possible for companies to earn as much in future profits. Investors began selling their shares in large quantities. About 16 million shares were sold on “Black Tuesday” alone. Because of this, millions of shares ended up losing all value. Investors who had bought their stocks on margin ended up completely wiped out because of that day. Personal investors weren't the only ones investing in the stock market; banks did it too. Banks invest... middle of paper ... yes. In the case of the Great Depression, there was a demand for production because World War II began. Works Cited “The Great Depression”. PBS. PBS and Web. November 1, 2013. “Timeline of the Great Depression.” PBS. PBS and Web. November 1, 2013. Smiley, Gene. “Great Depression.” The Concise Encyclopedia of Economics. 2008. Library of Economics and Liberty. Internet. November 2, 2013. Nelson, Cary. “About the Great Depression.” Modern American Poetry. Modern American poetry site. Np, and Web. November 4, 2013. Rosenberg, Jennifer. “The Great Depression.” About.com 20th century history. About.com. Np, and Web. November 3, 2013. Taylor, Nick. “A Brief History of the Great Depression.” Topics of the time. New York Times. NP, and Web. November 4, 2013 “The Great Depression”. History.com. History.com. Np, and Web. November 5. 2013