The United States boasted the largest economy of the world in the 1920s, but the glory was soon followed by an economic crisis that would devastate the country. The Great Depression was the longest economic downturn the United States had ever experienced and lasted from 1929 to 1939. While there is a lack of consensus on exactly how the Great Depression came to happen, overproduction was a leading factor, along with poor banking practices that eventually led to bank failures, ruining millions of families. The Smoot-Hawley Tariff also greatly contributed to the emergence of this tremendous recession, aggravating world trade, thus weakening economies even more.
Our unemployment rate had been as high as 25%, and for other countries rose to 33%. Every industry was affected by this depression one way or another. The president of the United States at the time of this economic collapse was President Herbert Hoover. He recognized that Americans
Those who put their money into stocks lost almost everything, including the Braddock family. In the movie Cinderella Man, James Braddock and his family show the struggle of life during the great depression. James, with no work available, struggled to win fights in boxing, in order to put food on the table for his family. Overall, Cinderella Man depicted many of the different aspects of the depression, and can provide a good explanation of what it was like for many families during that time.
a. Escaping the destructive scale of World War I the United States became the world’s leading economic power. Europe on the other hand found itself short of $350 billion and virtually bankrupt. The war had ruined the economies of the Allied nations, which had been limited to the production of armaments for the last four years. A terrible product to invest a nation’s entire economy, weapons could only be used during times of war, serving no other purpose than this, and so the Allied nations looked on at their weapon stockpiles and groaned at the money wasted, as their economies entered a period of decline. To make matters worse, the total death toll of the Great War and the Spanish Influenza that followed it numbered in the tens of millions, a loss of life that meant Europe’s economies had been robbed of the talents and brains of an entire generation of young men.
The Early 1930’s was a dismal time for America. The people were living in horrible conditions. There seemed like there was no hope for America any more. Three problems that caused or worsened the Great Depression were increased tariffs, low wages, and the Stock Market Crash. First, tariffs worsened the Great Depression because increased taxes made it harder for people to buy products from out of country.
Since the Germans had to pay for all of the casualties and damages inflicted upon other countries, they began creating an excessive amount of money. This lead to the inflation in Germany, and this put Germany in financial trouble where parents began giving this money for children to use as blocks as it was easier to make the children blocks with the money then paying more for a reduced amount of blocks. This is what the Germans called the Depression of 1929. “The depression of 1929 created poverty and unemployment, which made people angry with the Weimar government. People lost confidence in the democratic system and turned towards the extremist political parties such as the Communists and Nazis during the depression” (BBC 2014)
The three presidents Jimmy Carter, Herbert Hoover, and Ronald Reagan had problems before and during their presidency like Herbert Hoover had “The Great Depression” that cause an economic collapse and it was the longest and severe depression. Jimmy Carter had economic issue like inflation, unemployment, and balancing budgets. Ronald Reagan had problems with tax cuts, interest rates, and the military budget. The three presidents had problems that’s when they different economic policies on the economy. Economic downfall was the effect of the stock market crash that encouraged the cause rapid increase in bank credit and loan.
For example, it made Germany to hand over 70,000 square kilometers of their lands to the allies. Also Germany had to pay 6,600 million dollars to the Allies. In addition, Germany had to reduce their army, so they couldn’t ready for the next battle. Because of those terms of the Treaty of Versailles Germany hated it a lot.
"Once upon a time my political opponents honored me as possessing the fabulous intellectual and economic power by which I created a world-wide depression all by myself." Herbert Hoover was the president in office during the beginning of the Great Depression. He said this quote when most Americans attributed him to the root of the depression. This great despair started in 1929 and persisted for a decade. Launching off from Black Tuesday or the Stock Market Crash of 1929, the United States was under a national despondency.
and it was a quarrelsome time for race relations. During that period an economic slump, called the Great Depression, had affected many people’s lives as it was the most severe depression ever experienced by an industrialized country. Also factors like the Jim Crow laws and the 2nd Ku Klux Klan resulted in white people discriminating against blacks people. The Great Depresion is an important era in the United States’ history.
As stated in Article 232 of the Treaty of Versailles, Germany became angry and humiliated as it was being forced to pay 132 billion gold marks ($367 billion in US Dollars, 2010) over the next 30 years (Doc C). In 1929, these payments were reduced to 112 billion gold marks ($341 billion), but Germany still fell behind on these payments as they were struggling to pay for their own reparations of World War I (Doc C). As Hitler rose to power, he stopped all of the reparation payments and continued to rule Germany in his own reign. The payments required for the reparations of the victorian countries did not allow Germany to strengthen itself, thus allowing anger towards the Treaty of Versailles to lead as a contributing factor of World War
Bank failures began and spread rapidly, fourteen thousand business failed by the end of the year, and the next four years were spent in the worst depression ever seen. The government struggled to cope under the crisis, and opposition to the gold standard began. Federal and state governments were unable to alleviate the effects of the depression on its people, and unrest throughout the nation began. Unemployment climbed to 20 percent and thousands of strikes occurred in the duration of the depression. The depression ended in 1897, and the government had the help of investors to help bail the country out of the severe
The Great Depression affected all kinds of people the young and the old; the rich and the poor. Americans weary from years of economic suffering and were willing to trust President Franklin D. Roosevelt. He offered them hope, which was all that many people had left. The economic hardships from the Great Depression had reached a highpoint by 1933. On March 4th 1933 every bank temporarily had its doors closed, but for a large number the economic crisis was a permanent reality.
H.G Wells said, the Great War was supposed to be “the war to end all wars”; ironically enough a few years later a second world war broke out due to Germany feeling like the Treaty of Versailles treated them unfairly and the League of Nations having little to no power. World War II started on September 1. 1939 and ended nearly six years later on September 2, 1945. The war was long and bloody with nearly sixty million civilians and soldier casualties combined (according to nationalww2museum.org). There were five major turning points in World War II.
The great depression was shortly after the stock market crash which unemployed many americans and put many businesses out of business. The first long term cause of the great depression was agriculture. More specifically, it was when the farms over produced during World War I. This caused the depression because farmers took out loans to produce goods and the more they produced the more the prices dropped. The second cause of the Great Depression is industry.