What Caused The Great Depression Essay

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The great depression that took place from 1929 and lasted until about 1939 was a severe worldwide economic depression. This was known as the longest and worst economic downturn ever experienced in the industrialized world. Such as wiping out Wall Street millions of investors, consumer spending and investment dropped, and failing companies that laid off workers. By 1933, some 15 million Americans were unemployed and nearly half the country’s banks had failed. Both rich and poor have been affected and things like personal income, tax revenue, profits and prices have dramatically dropped. Jobs such as construction have been halted, farming communities suffered crop prices, and other areas such as mining took a most downturn. The depression was caused by a number of weaknesses of the economy. The lingering effects that took place from World War I caused numerous economic problems as Europe reported struggling to pay war debt and reparations. Another reported incident was a dramatic crash of the stock market in 1929, when about 16 million shares of stock quickly sold by panicking investors. It’s reported that at least 25% which is a quarter of the nation’s total work force were unemployed. For workers who kept their job, wage income has been reported to drop…show more content…
First is known as taxation. Which includes capital gains from investment, income, property and sales; this is all put under taxation. The second tool is known as government spending that includes the government salary, welfare programs, and public works projects. The monetary policy works better and faster than the fiscal policy because the fed can just vote to raise or lower rates at its regular Federal Open Market Committee Meeting. The monetary policy can take as little as six months for the rate to infiltrate throughout the economy. The fiscal policy is aligned in each year’s federal budget which means that it takes much longer in affect compared to the monetary
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