While many believe that the unprecedented crash of the stock market on October 29, 1920, better known as Black Tuesday, was the cause of the dramatic economic downturn of the century, long-term causes contributed highly to the impending catastrophe. This period of economic depression, aptly named the Great Depression, was due to: downfall of agriculture--farmers mass-produced goods to compensate for the lack of income, decline in industry-- due to tariffs and debt policies, and the decrease in consumer spending--
The people were in debt and and just dug themselves a deeper hole “,combined with production of more and more goods and rising personal debt,”(The Great Depressions) and had no way of making money to pay it all back without jobs. This all goes back to the roaring twenties when eh people bought and bought and dint think of the consequences. The biggest problem for the American was the stock market crash “the stock market crashed, triggering the Great Depression, the worst economic collapse in the history of the modern industrial world.”(The Great Depression) leading them into social mayhem. The people although causing this distress themselves sought out other things to blame while being completely helpless in their
Poor policies of government: After World War 1 Germany and other countries had to pay war reparations for which they had borrowed loan from the U.S.A. When the stock market crashed Herbert Hoover immediately called for the repayment of loans from other countries. Countries who were recovering from the war destruction found it difficult to repay the loans and this destroyed their economy as well. As a result, the great depression spread all over the world. Consequences: 1.
Then the “easy-money policies” caused a growth of credits and speculations in the market. The American depression had consequences even in Europe were countries still felt the after-effects of the war. However, it is in America that there were major dramatic repercussions. In fact, the Great Depression affected all the southwestern states called also Dust Bowl because the land dried up ad and turned to dust.
Today, 564,708 people are homeless(Social Solutions). The Great Depression has helped shape the United States to become the way we are today. There are numerous reasons this economic catastrophe happened. The Great Depression lasted from 1929-1939(History.com) President Hoover is widely blamed for this. However, he may not be entirely at fault.
Milton Friedman, an esteemed economist, once said that “The Great Depression, like most other periods of severe unemployment, was produced by government mismanagement rather than by any inherent instability of the private economy.” The United States during the 1930’s was in tatters. Unemployment was sky-high, there was overproduction and underconsumption simultaneously, people were starving and companies were bankrupt. In a time of uncertainty and trepidation, Franklin D. Roosevelt came up with a plan to boost the American people from the deep abyss that was the Great Depression : the New Deal. November 1932, proved to be a hopeful time for many Americans, FDR had just been elected and his New Deal promised Relief, Reform and Recovery for
World War II was the main event in happening when this story happened. When the attack on Pearl Harbor happened it sent the country into a war making life in America different. The Great Depression was finally starting to ease. Therefore American were starting to earn more money. Earning more money gave them the ability to spend it on goods in return boosting the economy.
In a time after World War I, in which the United States emerged as a world military and industrial leader, many of the citizens wanted to return to the government’s old policy of laissez-faire economics. This was a drastic change from the strong sense of nationalism that arose throughout the citizens of the United States during World War I, creating acts such as the Sedition Act of 1918, which made it a crime to criticize the government’s war policy. The decade of the 1920’s ended with the crash of the stock market which eventually led to the Great Depression, a worldwide economic depression that took place mostly during the 1930’s. It is in this context that America began to break away from its past and transform into a more modern era. While
One of the main reasons that people fled from the Great plains was the massive drought that occurred. Very few people had the money to pay for water and crops to keep their farms alive and well. By the late 1930s and early 1940s, two and a half million people had fled the Great Plains in the center of the U.S toward large cities and ‘Hoovervilles’(Great Depression. Facts). ‘Hoovervilles’ were towns that consisted of homes that were typically made out of cardboard and sheets For those two and a half million people, life began to become unsustainable as they could not grow crops.
Its social and cultural effects were no less astounding, especially in the United States, where the Great Depression represented the harshest adversity faced by Americans since the Civil War. The Great Depression is often called a “defining moment” in the twentieth-century history of the United States. Economic historians usually point the start of the Great Depression to the sudden devastating collapse of US stock market prices on October 29, 1929, known as Black Tuesday. Some dispute this conclusion, and see the stock crash as a symptom, rather than a cause of the Great Depression. It was an ordinary recession in the summer of 1929, when the Great Depression began in the United States.
The Great depression impacted the Americana government in a way that the government had to change, reform and became more cautious of economic situations. This book seemed to give a great detail of the time period of the Great Depression and the impact of it. The author, Shlaes seemed very bias toward her opinion as she stated, “all the changes brought by the New Deal meant that the United States seemed a less reliable place” (Shlaes 336). She did not seem to like Roosevelt and the New Deal, but nevertheless, she seemed to give a great detail of the impacts of the Great depression on American life and how it changed their values and also how it impacted the American
The Great Depression by Robert S. McElvaine is pretty straightforward. In the beginning, the book compares the economic crisis of 2008 with the roots of the Great Depression in 1929. He believed that politicians in the twentieth century did not learn their lesson from before. The book also depicts the lives of people during The Roaring Twenties and how the downfall of the economy and overproduction lead to mass unemployment and struggling families. McElvaine’s point of view on the Great Depression was considerably biased.
He also regulated agriculture, which helped increase industry. Roosevelt did everything he could to help America out of it 's depression. He could have done more charities or given food or money, but I think that falls under the same idea of helping the unemployed. The advantages of the New Deal was that it focused on all aspects of the Great Depression. Not only did it help recover the economy, but tried to put policies in place to prevent it from happening.
The Great Depression of 1929 was one of America’s most influential downfalls that crippled society for years. The depression caused many years of failure and poverty for almost all of society. The government’s role during these times was crucial and critical for turning around the economy. The depression had a major effect on government’s power and involvement with the people and states. The government was less involved before the depression.
First of all, one of the most diversity factor of the economic was the Stock Markets. During the 1920, the nation stock growth bringing an increased demand for American goods and speedy industrial growth. Things were looking good for the United States during the roaring twenties. The Stock Market crash of 1929, led to the ruin of many Americans and was followed by the great depression. The Great Depression witnessed the end of the economic boom in the 1920 's.