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strophic collapse of stock-market prices on the New York Stock Exchange (“Black Thursday") in October 1929 remains the most severe economic depression experienced in America (Modern American Poetry1).
Various factors caused the great depression. Apparently, the boom psychology and speculative euphoria resulted in underlying weaknesses and imbalances within the U.S. economy that caused the great depression (Modern American Poetry1). The federal government and financial institutions lacked capacity to address the underlying weaknesses and economic imbalances. Indeed, the American government could not sustain the rising personal debt, increased production of goods, and imbalance between the rich and the poor leading to the stock market crash of 1929. Economists assumed this was simply a correction of the market and hence did nothing to contain the situation. President Herbert Hoover underestimated the severity of the crisis and assured U.S citizens that the economic slump would not last for more than 60 days (WGBH Educational Foundation 1). Herbert did not consider government’s intervention on the matter. Consequently, stock prices continued to fall in America. By the end of 1932, stock prices had dropped to 20 % of their 1929 value.
Apparently, the great depression started in America and spread to other industrialized nations across the globe between late 1929 and early 1940s. The U.S had forged fundamental relationships with other European economies after the First World War that allowed the great depression to turn into a global economic crash (Modern American Poetry1). The First World War, war debts, and the need to pay reparations (Modern American Poetry1) weakened European economies forcing them to rely on America, which was the chief creditor after the war (Quah and Crowley 8). As such, the economic slump in America and the depreciation of the American investment credits to Europe fostered economic challenges in Europe. Ideally, countries that were deeply
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It began in 1929 and stayed till late 1930s. The United States is one of those countries that were badly affected by this severe economic turmoil. This essay points out the main causes of the great depression along with its impact on the American society.
It all started in 1929 and the world trade shrank by more than 50 percent. The great depression is known as the worst economic decline in modern economics history. Employment decreased greatly all over the world and poverty reached new levels.
It is a time in history when the world`s economy depreciated to the lowest grid ever in the late 1920s (Burg, 2005:15). During this phase it recorded the highest unemployment levels, the production process in the world almost came to a halt, and a sharp decrease in the stock market prices.
The Great Depression
The Great Depression was a severe depression of the economy on a global scale that occurred in the 1930s decade and preceded the Second World War. The Great Depression served as the longest and broadest depression of the economy with the most significant effect in the 20th century.
Stock prices fell at great paces and people could not sell stocks because there was no buyer. Similarly, banks had huge deposits in stock exchange (Watkins 42). Crises forced banks to close their business. Fewer banks initially took step of closing their business, which
After World War 1, America became a wealthy nation, people moved from rural areas to the cities in search of a successful life. America’s industrial sector was growing rapidly and there was plenty of employment. People speculatively invested in the stock market without regards to future occurrence they believed that it would continue to rise in the years to come.
The lingering ravages of Great Depression are still visible in terms of the economic crises it created to successive generation of families. According to economists, this damaging phenomenon was directly
Women became full of life and started drinking, wearing short skirts and worse of all, smoking same to men (Freedman 61). Many average American bought automobiles accosted by household appliances on credit. In as much as many businesses grew by 65% from
According to the report during the 1920's, America was going through a period of economic success that saw the emergence of new technologies such as home appliances, machinery used in agriculture, and growth of the credit industries. Due to this boom, farmers and companies increased their production to a point where they lacked a market for their produce.
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