Great Depression Research

In: Religion Topics

Submitted By maskyy
Words 1430
Pages 6
Great Depression Research Paper

The cause of the Great Depression, the worst economic depression in US history, was not just one factor but a series of domestic and other worldwide conditions that led to this outbreak. It was one of the key turning points of the twentieth century. Walton and Rockoff pointed that the already slow decline from 1925 to 1927 erupted into a rapid decline in 1928. The authors also addressed that part of the agricultural issues with farmers struggling with indebtedness and falling prices also contributed to the built up of the Great Depression (Rockoff 420). The first strike was the stock market crash of 1929. Unlike the crash 1987, the crash in 1929 created uncertainty on future development of the economy as well as billions of dollars lost for stockholders. The event occurred when the Federal Reserved decided to raise discount rate to 6 percent in order to increase steady flow of credit into the stock market, which other central banks decided to follow such as the Bank of England. Other advisors such as Roger Babson warned about the upcoming crisis but tensions were unbroken. However, during the last week of October when 13 millions of shares were traded by banks and investment houses, trouble began to sprout out and panic arises in the public. By mid-November, stock prices had reduced to about one-half of the original value in August. Two months of the original collapse in October, stockholders had lost more than $40 billion dollars. Although the stock market began to regain its losses by 1930, it was not enough and American entered into a trauma that is called the Great Depression. People withheld purchasing durable goods, which was “depended on consumer confidence” because of their uncertainties about the economy in the future (Rockoff 423). The crash which fuelled a decline in the economy because spending dropped…...

Similar Documents

The Great Depression and the Great Recession

...Abstract Economic depression is a state of the economy resulting from an extended period of negative economic activity as measured by GDP .The great economic depression of the US from 1929-1939 was one of the worst economic depressions in the world economy. The GDP per capita of the United States fell by a third (Federico 2005). A lot of economic activities went down and so many people suffered. Even though the depression affect the rest of the world, it has been called the great depression of the US because it’s believed that the US suffered more than any other nation and the causes are also attributed to have been started in America. Many things have been attributed to have caused the great depression among them are bank failure, Stock Market Crash of 1929, Reduction in Purchasing Across the Board, American Economic Policy with Europe, Drought Conditions but many people believe that it’s the American economic policies that really caused the depression and entirely blame the government for that. Some of the effects are increase in unemployment, collapse of banks and increase in the cost of living. On the other hand the economic recession of 2008 was longest recession since the world war two hence the term great recession. The recession lasted for 18 months from December 2007 to June 2009. Various things have been attributed to have cause the recession among them are irrational excitement in the housing market and low interest rates while some of the effects are increase...

Words: 2113 - Pages: 9

Great Depression

...Great Depression The Great Depression had a tremendous effect on the people of this Dark Age in the United States. Throughout these tough times people faced many hardships such as increases in crime, the stock market crash and the Dust Bowl. These events were all results of the Great Depression and also had huge impacts on people’s lives. Beginning of the Great Depression The Depression began in the year 1929 and was a result of the ending of the First World War. The United States was sending aid to Europe in recovery but this resulted in an over extension of credit and spending in the 1920’s. This over extension was a direct cause that led to the “most dramatic economic event in United States history”. No other depression had such a devastating impact on the United States society. Throughout the twelve years of the Great Depression, one quarter of the work force were unemployed, 5,500 banks closed and 32,000 businesses went bankrupt (“Great Depression”). Stock Market Crash On the infamous day known as Black Tuesday, October 29, 1929 the stock market crashed. The only thing was that no one was thinking anything could go wrong because a little over a month before the market had reached a 10-year high price. From then on the prices slowly decreased causing confusion, apprehension, and uncertainty began to set into all investors big and small (Galbraith 1). A couple of days before Black Tuesday a day known as Black Thursday was when people really started to notice...

Words: 1167 - Pages: 5

Great Depression

...solutions. The American society was facing numerous economic and social injustices (Sage, 2010). The war between labor and capital became the determining feature of the time (Sage, 2010). The Progressive Era came in the last years of the 19th century and lasted until 1917, bringing new ideas and progressive reforms whose legacy continues to persist until today. Among the most important points in the Progressive Era were the actual birth of the American oil industry in 1901 and the creation of the National Association for the Advancement of Colored People in 1909. Today’s oil industry in America has its roots in Texas. The drilling of Texas’s Sprindletop set the basis for the subsequent evolution of the nation’s oil sector (Paleontological Research Institution, n.d.). The “Spindletop” was discovered on a salt dome, not far from the Jefferson County, on the 10th of January, 1901 (Texas State Historical Association, 2012). Needless to say, the development of the oil industry had profound impacts on the politics, economy, culture, and social life in America. Apart from the fact that the oil industry greatly contributed to the rapid evolution of the U.S.’s political and economic power, it also became one of the major employers in the U.S. labor market. The oil industry generates and supports millions of jobs in other industry sectors and remains one of the biggest purchasers of services and goods in America. In the meantime, the creation of the NAACP became a turning point in the......

Words: 1404 - Pages: 6

Great Depression

...Research and analyze the Great Depression, and answer the following questions in a paper: • What were the root causes/events that led to the Great Depression? 10 points The Great Depression was a worldwide economic downturn that began in 1929 and lasted until about 1939. It was the longest and most severe depression ever experienced by the industrialized Western world. Although the Depression originated in the United States, it resulted in drastic declines in output, severe unemployment, and acute deflation in almost every country of the globe. But its social and cultural effects were no less staggering, especially in the United States, where the Great Depression ranks second only to the Civil War as the gravest crisis in American history (Great Depression, 2013). The fundamental cause of the Great Depression in the United States was a decline in spending (sometimes referred to as aggregate demand), which led to a decline in production as manufacturers and merchandisers noticed an unintended rise in inventories. The sources of the contraction in spending in the United States varied over the course of the Depression, but they cumulated into a monumental decline in aggregate demand. The American decline was transmitted to the rest of the world largely through the gold standard. However, a variety of other factors also influenced the downturn in various countries. The most prolonged departure from the normal stability of U.S. long-term growth occurred during......

Words: 504 - Pages: 3

Great Depression

...The Great Depression The Great Depression was a tragedy for the whole world, but it mostly damaged specifically one country, which had the best economic system in the world at that time - United States of America. The Great Depression was an economic collapse from 1930s to 1940s. This economic disaster was brought to life because of a huge amount of problems. There even were different types of problems, such as social, political, economic, or military problems. All together, they created this economic collapse. The official start of the Great Depression was originated in United States, during the day of October 29, 1929, referring to the article in New York Times. During that day, which was called Black Tuesday, a big economic problem appeared - the stock market crash. A huge amount of people lost a lot of their money just in one day. Prices on stock market fell down very quickly and people did not even get the money that they invested, they lost even more than half they invested. Prices kept falling - people kept losing their money. Secondly, with this crash, the banking system collapsed too. "The banking structure was inherently weak", wrote John Kenneth Galbraith in The Great Crash, which actually was one of the causes of the collapse. This situation appeared because people could not pay their money for using credit system, and so banks were 'destroyed' - "The weak destroyed not only the other weak, but weakened the strong...", says John Kenneth Galbraith. With these......

Words: 593 - Pages: 3

The Great Depression

...The Great Depression The Great Depression was the first bubble that Goldman Sachs made explode and got away with next to no penalty. They were just beginning as an immigrant owned business with the idea to gain money by loaning it out to people at interest. They blew up around the depression for their practice in “investment trust”. They offered stock and made the average guys feel like they were investing a lot but they knew little of the process. Once they invested, the company bought their own stocks to make it look good. Then they get another investment in their “new, better” stock than before, and repeated the process. Eventually somewhere in the chain it broke and Goldman owned everything under fake practices. When the depression hit these people found out these investments were worthless and suffered while Sachs excelled. I agree with the author in the way that the practices were morally wrong and should have been illegal. Goldman knew what was happening and pushed back investment on people. I disagree that it’s all their fault though. Goldman at the time was only being ethically wrong, since none of the practices were outlawed. In the end it is the person’s responsibility to know what is actually going on with your money. Tech Stocks 65 years later they picked up where they left off and began to scam again. This time Goldman attempted to pump up or down IPO on startups no matter how crap or great. With help from big players and the media Goldman would sell......

Words: 1340 - Pages: 6

The Great Depression

...Great Depression Causes and Effects Introduction: October 29th, 1929 would be a historical day for United States. It was enter in a new period, which was “The Great Depression” period. Great Depression lasted for 10 years. October 24th is known as the “Black Thursday”, because the amount of selling share stock was tripled. The share prices were lower, which caused the crash of the stock market. The collapse of the stock market was thought to be the main cause of the great depression, but many economists do not think so. Great Depression very quickly was spread all over the world. The Great Depression was a period of high rates unemployment, bankrupting banks, lowering prices, and increasing the uncertainty to American nation. Moreover, it brought big changes in U.S politic, society and culture. In the beginning of the Great Depression Hoover was president of U.S. He made a lot of new reforms in order to face the Great Depression, but they were not successful. People were tired with Robert Hoover’s fail. All they needed was a new leader to get them out of that bed situation. Because of these, in the elections of 1929, most of American citizens voted for the Democrat Franklin D. Roosevelt. Roosevelt brought in a lot of changes in economy, politic, social and cultural life of Americans. His major programs were the New Deal (First Hundred Days) and the Second New Deal. These programs were very effective. The number of unemployment rate was lower comparing......

Words: 2386 - Pages: 10

The Great Depression

...Great Depression Causes and Effects Introduction: October 29th, 1929 would be a historical day for United States. It was enter in a new period, which was “The Great Depression” period. Great Depression lasted for 10 years. October 24th is known as the “Black Thursday”, because the amount of selling share stock was tripled. The share prices were lower, which caused the crash of the stock market. The collapse of the stock market was thought to be the main cause of the great depression, but many economists do not think so. Great Depression very quickly was spread all over the world. The Great Depression was a period of high rates unemployment, bankrupting banks, lowering prices, and increasing the uncertainty to American nation. Moreover, it brought big changes in U.S politic, society and culture. In the beginning of the Great Depression Hoover was president of U.S. He made a lot of new reforms in order to face the Great Depression, but they were not successful. People were tired with Robert Hoover’s fail. All they needed was a new leader to get them out of that bed situation. Because of these, in the elections of 1929, most of American citizens voted for the Democrat Franklin D. Roosevelt. Roosevelt brought in a lot of changes in economy, politic, social and cultural life of Americans. His major programs were the New Deal (First Hundred Days) and the Second New Deal. These programs were very effective. The number of unemployment rate was lower comparing......

Words: 2386 - Pages: 10

Great Depression

...continued to free-fall. By the middle of November, the market had lost about one third of its value, an amount representing $26 billion, or 40 percent of all stock that had existed on the Exchange just a month earlier. (McNeese, 2010:19-26) The Great Bull Market of the late twenties was fueled by easy credit in the form of buying stock by putting up a small percentage of its cost in cash and borrowing the rest “on margin,” using the stock itself as collateral for the loan. In a rapidly rising market, the “leverage” provided by margin buying made the possibilities for huge profits extraordinary. By the time the Federal Reserve sought to dampen the speculative fever in 1928 and 1929 by raising interest rates, the mania had taken on a life of its own. “Nothing matters as long as stocks keep going up,” the New York World said as 1929 began. Historian Maury Klein sums up the situation well in his book Rainbow’s End (2001): “Put simply, too many people held too much stock on borrowed money.” When the economy began to slow in the summer of 1929, it sent signals to Wall Street that were disregarded by most investors, but heeded by many of the richest insiders. The crash was a response to an already begun, but as yet invisible to most observers, Depression. It amounted to a spectacular funeral for the “New Era” of eternal prosperity that had been proclaimed a few years earlier. The crash did, however, accelerate the downward spiral of the economy by wiping out much of the paper wealth......

Words: 4815 - Pages: 20

Great Depression

...Since 1500 | History Research Paper | The effects of the Great Depression were huge across the world. Not only did it lead to the New Deal in America but more significantly, it was a direct cause of the rise of extremism in Germany leading to World War II. | Charles Sodman1/30/2014 | Introduction According to Christine Romer the Great Depression commenced in the year 1929 till the year 1939, the longest in the history of the world. The origin of the Great Depression from the year 1929 to the year 1939 has been the worry of many researchers. However, the root cause of this unfortunate happening was hard to crack. Therefore, the search was abandoned and many speculations and assumptions were made as to what really caused the Depression. (Romer) Till present, the cause of this sad event has not been found. More so, the effects of the Great Depression lead to many broke and unemployed individuals who could hardly feed themselves daily. Additionally, goods and services were priced at 10 times less their original price. (Romer) As a result, there was a practice of extremities in Germany by individuals who took advantage of the situation for personal gain leading to the World War II. (de Bromhead, Eichengreen and O’Rourke) Countries were greatly affected as the Great Depression brought about alterations in macroeconomic policies, significant changes in economic institutions, and economic theories. (Romer) The effects of the Great Depression Crash in stock......

Words: 1579 - Pages: 7

Great Depression

...In this essay I will be discussing the impact and significance of the Depression as a barometer of governmental success and failures. I will also explain how the harsh economic times impacted the governments of Europe as well as the maintenance of international peace. In order to support my views I will provide multiple examples to support my views. The Great Depression was a horrific economic depression that impacted countries all over the world in the 20th Century. Some of these effect were long lived and took years to recover. Some of the effects from the Great Depression still happens in today’s society such as rise in unemployment, crime rates and prostitution. As well as the lack of funds for healthcare and public education. The US Great Depression lasted from October 1929 until Franklin D. Roosevelt became President in 1933. The Great Depression disrupted the lives of the Americans because for many years the government and the American people had been on a high for so long and within a blink of an eye the world as so many had grown to know came crashing down. One success which came from the government after the Great Depression was it improved the economic system of the United States. President Roosevelt faced the economic depression head-on once he was elected in office. Within his first 100 days in office, he and his administration created numerous institutions which had been neglected for hundred of years. Alot of the programs that were created were very......

Words: 561 - Pages: 3

Great Depression

... APS Social Studies Causes of the Great Depression DBQ Historical Context: The Great Depression in the United States started in 1929 when the stock market crashed. It caused an economic depression. The depression last over ten years and had long-term social, economic, and political effects on American society. It is still one of the greatest defining eras in US History. In general, we know what caused the Great Depression, but these causes are still debated even today. It happened after a period of great prosperity (The 1920s) when American commerce was growing. The issues that surround the causes of the depression are still issues today. Task: Using information from the documents and your knowledge of United States history and government, answer the questions that follow each document in Part A. Using your answers from Part A you will write an essay (Part B) in which you will be able to: • Discuss the following three causes of the Great Depression, o Use of Credit o Over speculation o The Federal Reserve’s Monetary (Money) policy Use the box below to organize your notes and ideas that can be used to convert into an essay. Part A: Short Answer Document #1 Ford Advertisement: 1920 [pic] Duke University Library 1. An average annual wage of all industries in the 1920s was about 1400.00 dollars a year. Many workers averaged (depending on the job) between .50 cents per hour up to 2.00 dollars per hour). How much...

Words: 1851 - Pages: 8

The Great Depression

...The Great Depression me Institutional Affiliation Date The Great Depression Duignan, B. (2013). The Great Depression. New York: Rosen Pub. The book highlights information concerning the great depression. The author argues that the great was a period that was characterized by severe hardship which affected every person. The time did affect not only the poor but also the rich. It was also marked with various changes in the world politics. The book stresses that the primary cause of the great depression was the 1929 market crash. The writer argues that the U.S was the most troubled nation in the world. It changed the country’s popular culture and its government institutions. It also affected other industrialized states as they suffered a decline in the wholesale prices. The book states that various moves that were made so as to deal with the issue of Great Depression. For instance, one of the moves was the devaluation the States currency. The first state to recover was Britain as it was forced off the gold standard early. The book underlines the causes of the great depression and its impacts. The source also offers information concerning the significant steps that were taken by different countries in dealing with the issue. The book provides clear information about the Great Depression. The author divides the book into various sections where he starts off by giving a short introduction to the topic. It helps a reader to......

Words: 2391 - Pages: 10

Great Depression

...Great Depression HIS/125 10-20-2011 Great Depression Many people credit the stock market crash of 1929 cause the Great Depression it was only one of many reasons that brought on the Great Depression in America. The Great Depression lasted from 1930 until the US entered World War II, and with the work that World War II brought to industry America was able to climb out of the Great Depression. The damage that the great stark market crash due to the economy is unparalleled in American history. It not only hurt Americans at home but also abroad, Europeans did not trust America anymore due to this crop prices abroad sunk to new lows. Farm income in America dropped by more than half (Davidson, 2005). Bank failures also spread from the rural banks to the cities, depositors rushed to withdraw their cash, this sent the American economy in a downward plunge. The automobile and construction industries also began to lag. But overall the causes for the Great Depression started earlier, that when the great crash happened. In the year 1928 to 1929 consumer spending and services dropped to 1.5%. (Davidson, 2005). The booming economy has hurt itself instead of paying workers higher wages businesses use their profits to expand their factories, this in turn led to, workers who did not have enough money to buy the products that they were making at efficiently and lower costs (Davidson, 2005). Workers started borrowing or using credit to pay. Consumer......

Words: 447 - Pages: 2

The Great Depression

...The Great Depression Thomas Clay Forrest Economics 510 Professor Don Waldron February 6, 2011, 2011 The Great Depression The Great Depression was the deepest, longest and most widespread economic calamity of the twentieth century, and is the most common standard of how far things in the world’s economy can decline. Beginning with the First New Deal, which put into effect a host of relief and recovery measures designed to improve economic conditions and stimulate recovery, myriad other steps were taken to prevent another catastrophe of this magnitude from ever occurring again. Are these measure enough, though, and could the world ever experience another Great Depression? How do the events of the Great Depression era compare to recent economic downturns, including the current deep recession the world is experiencing? This essay will provide answers to these questions and provide an analysis of the causes and events that led to the Great Depression. It will also present the reasons why another Great Depression is unlikely to occur again. Debates vary as to the causes of the Great Depression, with many well-respected economists offering differing opinions to what they believe led to the historic event. British economist John Maynard Keynes felt that the Depression was driven by demand, and in his book the General Theory of Employment Interest and Money, Keynes argued that lower aggregate expenditures in the economy contributed to an......

Words: 1620 - Pages: 7

Connect with us on Twitter | Ariana Grande | Prism Ark