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 economic recession in the history of the Western industrialized world” (History.com). We can learn from the events of the Great Depression that government involvement is the deciding factor in determining whether an economy will expand or continue to contract during a recession. The 1920s, also known as the Roaring Twenties, were great times for the economy. People bought extravagant things like cars and invested in the stock market to earn a lot of money. Many of the new and expensive things people bought were purchased on credit. People even bought stocks “on margin,” or with borrowed money. All this extravagance would soon disappear, and everything people bought on credit or on 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 occurred. started. Stock market prices had continually risen to the point where it was no longer possible for companies to gain as much in their future earnings. 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 becoming worthless. Those investors who had purchased their stocks on margin ended up being completely wiped out due to this day. Personal investors weren't the only people investing in the stock market; the 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 had begun. 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 Economy and Freedom. Network. November 2, 2013. Nelson, Cary. "On the Great Depression." Modern American poetry. Modern American poetry site. Np, nd Web. November 4, 2013. Rosenberg, Jennifer. "The Great Depression." About.com History of the 20th century. About.com. Np, nd Web. November 3, 2013.Taylor, Nick. "A Brief History of the Great Depression." Arguments about times. New York Times. NP and Web. November 4, 2013 “The Great Depression”. History.com. History.com. Np, nd Web. November 5. 2013