American loans were costly for America and it took them time and favors from other countries to get them back on track. Inequality and unequal income and wealth was a big benefactor as well because the rich became richer and the workers lives didn’t change and the big businesses carried on speculating on the exchange with all their money eventually to the destruction of the once so lavish life of America.
The First World War was the main reason for America’s industrial strength as many countries were paying America back money that they had loaned during the war, with interest. The First World War also meant that other countries were not strong enough to keep up with America’s industry. Republican policies were also contributory factors to America’s industrial strength, as one of the policies was to leave businesses alone. This meant that all industries thrived. New developments led to mass production, which allowed the average American to buy new items that were manufactured.
Thus the collapse of the stock exchange was the result of many different causes. The bad presidential decisions helped ruin the US economy as they didn’t focus on all parts of the US economy – mainly neglecting the agricultural sector. There were so many reasons why the stock market crashed. The laissez-faire policy had a huge influence. Furthermore the loans paid towards other countries that were never paid back resulted in a huge amounts of money lost which couldn’t be paid back to try help the US.
Future Outlook For the past many years, the American automotive companies rode the economic booms and success that was built by them long ago. They also knew that the American governments employ the “Too Big to Fail” philosophy, believing companies that are too large and too interconnected to the economy are too valuable to be allowed to fail. It was this lack of incentives that lead to their demise. Apart from ford, the other two big players in the American Automotive industry failed to become competitive and they paid a heavy price. Now that they had their wake up call, consumers can only expect better things in store.
The boom was leading people away from basic farming food and to other chains available to them. Another important reason was the lack of demand from the European market. During the war, tons of grain had been shipped by America to Europe, which made Europe, America's biggest customer of grain. But, because of the devastation in the war, many European countries had been vastly bankrupt and very few countries could afford to buy farming goods anymore. To add to this, the republicans made it worse by the high tarrifs put up to protect America industries.
The Roaring Twenties in America In the first three decades of the twentieth century America became the richest and most powerful country in the world. America had so much money it could lend money to Europe after World War One. The average wage for an American was five times more than the average workers wage in Europe. America's wealth, population and industry boomed. The 1920's are often known as the roaring twenties in this essay I will find out if this is true.
================================================================ Not everybody benefited from this, though; the isolationist policy meant that businesses such as those that worked in foreign trade and relied on overseas market were broke, as they no longer had any business. Farmer also did very badly from this. Overproduction meant that prices fell to the advantage of the consumer, and so farmers had to sell
Romans ended up relocating because of such bad treatment. The wealthy owned slaves who would forcibly do free labor. The workers eventually went jobless and move somewhere else (doc 11). If slaves were taking up all of the work citizens were left to face the punishment for not having any money to tax. A huge number of lives lost due to sickness resulting in an economic drop (Doc 5.)
“These skyrocketing stock prices signaled trouble for the U.S. economy” (Causes of the Great Depression. This caused businesses and factories to fire workers because they lost money when the stock market crash and now since the economy is in fear people did not want to spend their money. In poor areas, schools were being shut down, which left about 300,000 children with no education. If children didn’t get any education then there would be even little hope for them to get a job to keep them financially stable. There was absolute chaos when people heard that the stock market had crashed, which led to bank runs.
suicide rose as a result of debts and the pressures being put on people who couldnt handle it. ill health rose as a result of poor hygene and living conditions. Elderly people were robbed of pensions and svaings and so had nothing to live for anymore. Women before the depression had begun getting involved in the stock market. so during the depression they lost money like the men did.