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A person or event - Essay Example

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The decade preceded the World War II. It varied in many countries, but its effects were experienced between 1930s and lasted till late 1930s or the mid 1940s. The occurrence was…
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A person or event
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A person or event

Download file to see previous pages... The great depression originated from the United States. This was because of the fall in stock prices starting 1929. It eventually became worldwide news with stock market crash of October in the same year. The great depression had major and devastating effects in both poor and rich countries. It affected the people’s income, profits, tax revenue as prices dropped. As a result, the international trade plunged with more than 50% leading to serious cases of unemployment in the US and other parts of the world (Miller 683).
The great depression becomes relevant in the modern America as it offers guidelines on what the country should not do. In that case, America uses the occurrence to regulate its performance in local and international markets. For instance, the great depression was caused by the over investment in the capacity of the heavy industries compared to the earnings and wages of independent farms and businesses. As a result, the American government has learnt to regulate and manage the cash flow in the economy. In that regard, it pumps money into the pockets of the consumers in order to enhance their purchasing power. The country can maintain the industrial base and re-inflate prices and the wages to ensure that all the economic bases are in check. Furthermore, the decline in output was also a cause of the great depression. In this case, the decline caused an initial decline in the output, and it prolonged the recovery due to ineffective policies that affected the labour market (Hamilton 147-150). Based on this situation, America has been able to streamline the labour policies. Its labour policy guides the labour sector and protects production. The country has managed to address the declining capital stock, labour force and productivity that complement the use of these inputs.
The great depression is indeed a great time in the American history. It influences the economic direction taken by the US. For a long time, the country has undertaken ...Download file to see next pagesRead More
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