During the “Dirty Thirties,” the Dust Bowl took place and affected farmers across the Midwest, resulting in less money and the collapse of business; however, the president enacted the New Deal which solved a lot of the problems. The market crash caused businesses to close and as a result, people wanted to work for any wage. The 1929 market crash caused the Great Depression and closed factories (Worster 5). When
Poverty in 1920’s America was defined by making less than a certain amount of money each year, which was determined by the government (BBC). The masses were indifferent to the amount of people impoverished, proving the mindset of false prosperity. The preconceived notions that the U.S. economy would be unimpaired were soon disproved by the Great Depression. People who were impoverished were getting loans, and buying luxury items (Facts). This lifestyle of believing in the false prosperity and not realizing the problems during the 1920’s of America caused people to suffer more.
Many Canadians of the thirties felt that the enormous 1928 “wheat crop crash was the main reason why the depression was happened, instead of the Wall Street Stock Market Crash” (Porter Creek Secondary School, 2000)[ Porter Creek Secondary School, “Great Depression of Canada”, Yesnet.yk, http://www.yesnet.yk.ca/schools/projects/canadianhistory/(accessed in March 28th 2017)]. However, the collapse of the Wall Street Stock Market caused almost all countries to cut off trade with other countries. As people all know, Canada was an economically country depended on export, if the rest of the countries of the world stopped the World Trade, there was no doubt that Canadian economy would get huge damage. By 1929, the price of Canadian wheat had fallen because of overproduction, “the price of grain dropped from $1.60 a bushel to $0.28 a bushel”(Porter Creek Secondary School, 2000)[ Porter Creek Secondary School, “Great Depression of Canada”, Yesnet.yk, http://www.yesnet.yk.ca/schools/projects/canadianhistory/(accessed in March 28th 2017)]. Due to this, many people were unemployed and money and food began to run low.
The Great Crash generally refers to the stock market crash (in America - Wall Street) on 29 October, 1929. It started on Thursday, 23 October when just before the 3:00 pm bell rang, the stock prices instantly fell. For the following week stocks fell lower and faster and changed hands so fast, the machines that kept track of these stocks seemed unable to cope up with the activity. All along while President Herbert Hoover reassured the people of America that the nation was “on a sound and prosperous basis”, more panic spread and because the uncertainty and risk was rising, people wanted their money back. In all this frenzy the United States Securities Regulation agencies could have shut down the market but they feared that would only spread more fear and could have led to a violent display of the emotions of the public.
One of the biggest thing that Jackson had done as a president was in 1832. Jackson vetoed a bill that would renew the second bank charter early. Jackson stated “I will kill it!”. He said this because he didn’t like the bank at all and he believed that it made the rich richer and the poor poorer. He said in his veto message “It is easy to conceive that great evils to our country and its institutions might flow from such a concentration of power in the hands of a few men irresponsible to the people.” He is saying that the bank is being taken over by the rich and that the bank isn’t helping the common men at all.
Cinderella Man “Any lack of confidence in the economic future or the basic strength of business in the United States is foolish,” Herbert Hoover stated when addressing the economy in the 1930’s. Sadly, the statement turned out to be false once the economy plummeted. The Great Depression took many americans by surprise, causing havoc wherever it reached. Many citizens of the United States invested everything to the stock market, and in turn were left on the streets with nothing after the economic crash of the 1920’s. Many years after the Great Depression Hollywood had been inspired to showcase snippets of how life was like in the Great Depression.
During the Hoover administration in the 1930 's, a Great Depression fell over the United States. The U.S. citizens strongly blamed President Hoover for this desperate time and caused him to become unpopular. Due to this fact, Franklin D. Roosevelt won the 1932 election and promised the people “action now” with a New Deal. This reform program explains Franklin 's legislatives and policies for dealing with the economic struggle caused by the Great Depression. The New Deal program presented by Franklin came in two waves called the First and Second New Deals.
The Great Depression start on October 29 1929. The Depression was a time of economic downturn resulting in many people losing their jobs, house money, etc. The Depression started with the crash of the Stock Market which quickly spread its way through America. Herbert Hoover, Franklin Delano Roosevelt predecessor believed in an economic philosophy called Trickle Down Economic meaning that if a Business does well the whole economy benefits. During the beginning the depression very little businesses succeed so still no people benefited from a quote unquote flourishing business.
Furthermore, globalization also increases income inequality by favouring wealthy corporations as they have the resources to expand their businesses creating more profits. For instance, if a company moves production of a particular product to an economically disfavoured country, people in industrialised countries tend to lose their jobs, simultaneously creating job opportunities for the people in the developing country. Numerous individuals in this nation work for a menial pay contrasted with those in industrialized nations, henceforth, they frequently stay poor furthermore don't have adequate protection, for example, social and health insurance. While wealthy companies flourish, small businesses do not have the capital to grow globally and cannot compete in the market leading to a big gap in small business profits and big business profits. Also leading to a crowding after effect on small businesses and more income for the already wealthy corporations which exacerbates inequality between the poor and the rich.
As the great divide of wealth inequality continues to increase, capitalism surely can no longer be sustainable in and of itself, as money is extremely concentrated to a select few. With this paradigm the lower classes can’t and fail the liberty of being able to buy the products or services being produced. In the Marxist view, capitalism will eventually set the stage for a revolution since it promotes poverty, which is what Nick Hanauer (a self described 1%), in “Beware, Fellow Plutocrats, The Pitchforks Are Coming,” attempted to reiterate to his fellow comrades. During his Ted Talk Hanauer states, “So what do I see in our future today, you ask? I see pitchforks, as in angry mobs with pitchforks, because while people like us plutocrats are
As for the cons, it is said that the redistribution of income or wealth goes against what the American economy stands for in a sense of a free capitalism. It is sort of the opposite of the pros in a way. You see when redistribution is taking place, big businesses and the wealthy are unable to create businesses, and hire. It acts as a cinder block in a way that it can bring the economy down. One last note regarding cons is that many despise redistribution because they feel they are forced to give their hard earned money away and that it promotes laziness even.
In the article “Rethinking the Great Depression,” by Gene Smiley, the author expresses his views on some points that lead to the great depression. The article talks about the crash of the market and everything associated with it. Further, he points out why the actual depression lasted longer than it should have in his opinion. The author also speaks about why the government failed the people, and why they had hard times due to the limited money available to them to work for. The article also places most of the blame on the government itself for the lack of money and help to the people during this time.