Causes And Effects Of The Great Depression Essays

Causes And Effects Of The Great Depression Essays

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There were numerous causes and effects of the Great Depression. It was a divergent distribution of wealth. The nation’s wealth increased extremely but they did not distribute it evenly. The economy didn’t have any way of paying the money back. It created a financial crisis when Europe couldn’t purchase goods from the United States. It was mandatory for Germany to pay for World War I due to the Treaty of Versailles. This debt made the United States pass the Forney-McCumber Act which created high tariffs. There were a variety of reasons as to why the Great Depression started.
The Great Depression lasted from 1929 to 1941. It ended in 1941 once America prepared to enter WWII.It was the most forbidding and expanding depression ever. The Great Depression created a countless amount of changes in American civilization. The top five causes of The Great Depression were: the stock market crash, bank failures, consumer spending, tariff increases, and droughts.
At the end of WWI, European nations owed over $10 billion to their former ally, the United States. The US insisted their former allies pay the money. Their economies had been devastated by war and they had no way of paying the money back. This forced the allies to demand Germany pay the reparations imposed as a result of the Treaty of Versailles. This led to a financial crisis when Europe could not purchase goods from the US.
The debt contributed to the Great Depression in 1922. The US passed the Fordney-McCumber Act, which created high tariffs on industrial products. Other nations began to retaliate and world trade declined helping bring on the depression. Factories were producing products, however wages for workers were not rising enough for them to buy the products being produced. T...


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... “capitalist ruse”. Conservatives accused Franklin D Roosevelt of supporting socialism. Socialist leaders claimed the New Deal did not do enough to end the depression.
Fundings for the arts expanded skills in reading”. President Roosevelt changed the role of the presidency in American history by signing a law that limited the number of terms. The New Deal did not solve problems by creating new jobs. If it wasn’t for the new jobs, it would’ve been a decrease in the income. In today’s time, the New Deal would be a failure.
The Great Depression turned into a disaster for alot of residents of the U.S and farmers who went into debt. A lot of people became homeless and unemployed. The Stock Market Crash in 1929 was the beginning of the Great Depression. Due to the FDR’s New Deal, the government has grown. When the US entered WWII in 1941, that’s when the depression ended.

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