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Great deprassion - Research Paper Example

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Running Head: The Great Depression The Great Depression Full Names Institution Course Details Dates THE GREAT DEPRESSION The great depression was the most severe of all the economic depression that has ever happened in the history of the U.S and the world as well…
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Great deprassion

Download file to see previous pages... This saw most of the Americans loose their farms and homes which led to some of them deciding to escape from America using trains which crossed over their borders to the neighboring countries and other states within America which were not adversely affected by the depression. These people who migrated to other states and countries thought that they would find new jobs wherever they went but that was not to be as the depression had affected almost the whole of America and its neighbours.From the studies it was noted that America was the first country to recover from the Depression which started at around 1933 but the recovery was slowed down in the following two years but after the two years of slowing down the economy started to have a steady recovery in the year 1935.As the economy was recovering and doing well in the 1940 there came the World War 11 started and America was drawn into economic depression again which slowed down the process of recovery and that’s why it was came to be known as the Great Depression. In the history of U.S this depression which is said to have affected the whole world has come to be known as the ‘defining moment’. This depression made the federal government change the Way it was performing towards the economy. The government had to control all the business activities which the businessmen objected to in order to control the economy. Some of the drastic measures that the federal government took to recover the economy included laying down of the elderly citizens who were working thus giving them involuntary unemployment compensation. It as well changed the labor engagements between the employers and the employees through the Wagner Act which promoted the formation of unions to act as their arbitrator so that they could be fairly represented. But all this changes needed an increase in the federal government size. After the expansion of the federal government there were some economical changes which were experienced like in the case of paid citizens in the 1920s they increased in number as they approached the 1930s.The depression also changed the way people looked at the economy as many of them blamed lack of adequate demand which all the economists thought that the federal government should intervene and stabilize it through formulating good economic policies. Overtime many Economists have tried to demystify the cause of the depression and its reasons to affect other nations adversely than others but they have not come to a unanimous conclusion on what caused the depression. During this economic hardship America was very cautious with all the nations that it associated itself with economically. This was so because other European countries which had been hit by the depression had decided to operate within their borders this meant that there was less global trade which in turn would hurt the American economy due to its presence in most of these countries. The reason why some countries detached themselves from the global trade is that they blamed it for the emergence of the two world wars and they did not want to see the occurrence of such wars again. So as to resuscitate the global trade and promote the economy there was a dire need to form global monetary bodies so that they could assist in the supporting of the global trade. Due to this need then it led to the formation of two International Financial Institutions that would ...Download file to see next pagesRead More
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