The Depression was a period of time after the economic boom of the 1920's in America, when the economy went downhill. People lost money, jobs, shares, businusses went bankrupt and the farming industry suffered greatly. The Republic Government at the time lead by Hoover was still following policies of Lassez Faire so business was not getting the support it needed to get it back on track. The Republic Governments Protectionist policies were one of the causes of the great depression. There were trade problems associated with their protectionist policies.
Big banks were in trouble as well, many investing recklessly in the stock market then losing it all when the stock market crashed in 1929. The fourth factor was Americas position in the international trade market. In the late 20's, Europe's demand for American goods began to decline, partly because their industry was becoming more productive and partially because their economy was destabilized from the international debt structure that emerged in the aftermath of WW1. The international debt structure was a fifth and final factor contributing to the Great Depression. At the end of the war in 1918, all the European nations that had been allied with the US owed large sums of money to American banks and could not repay them with their shattered economies.
The truth behind the stock market crash is that it was the event that caused the already unstable economy to go over the limit. If the president and the stock market crash did not cause the Great Depression, then what did? According to research done on the Great Depression, the causes rest on of different factors, but can be put under two main categories. The responsibility for the Great Depression falls not only on the Stock Market Crash, but also on the maldistribution of wealth, an unstable economy and the wild stock market practices of the 1920’s. The largest reason for the growing gap between the rich and the working-class people was the sudden increase in manufacturing during the 1920’s.
With the ravages of world war one many countries where in debt in post war world one or became in debt due to reparations. It has been said that the Great Depression began in 1929 after a cataclysmic collapse of the New York Stock Exchange. It began in the United States but quickly spread across the world causing an economic slump. “During the collapse of the world the German case is perfect example of what happen virtually everywhere in the 1930s. The international economy broke up into trading blocks determined by political allegiances and currencies.” Britain’s economy suffered with the loss of the over seas market and the country’s choice to not to devalue the pound.
With the banks relying on the circulation of money and people not needing all of their money all at once, the banks started to go bankrupt as they did not have enough money to give back everyone the money they have in the bank. The closing of banks started a blitz to get money from the banks before they closed due to not having enough money. These were a big part of the great depression and a major reason to the unemployment during this time. GML pg 849 The Presidents during this time were Hoover and Roosevelt and they both used very different tactics to combat the growing deficit in our nation's economics. With the troubling times came troubling problems that perplexed our nation’s government and forced them to deal with unforeseen circumstances that they were not accustomed to.
The federal government also helped to make the growing gap between the upper and middle classes. President Calvin ... ... middle of paper ... ...yers were available at any price (EV 549). This speculation and the resulting stock market crash acted as a trigger to the already unstable U.S. economy. Due to the poor distribution of wealth, the economy of the 1920’s was one very much dependent upon confidence. President Hoover stated, “…the crisis has been isolated to the stock market itself.” (Docs Hoover).
Hoover plan was to beat poverty; but, he caused more people become poverty-stricken. He became very unpopular amongst the people in the United States. Unsuccessfully, his plan did not work for the betterment of the American people. The Great Depression Causes The causes of the great the Great Depression were over expansion, speculation, bankruptcy and a pattern that has repeated itself through out the United States history. In a five time span Americans salary did not equal to their contributing.
So the sudden lack of financial confidence led to bank failures, which in turn advanced the depression creating what we know today as the Great Depression. (History.com Staff,
What was the immense hardship that America had to face in the late 1920’s and 1930’s? If you guessed the Great Depression, then you are correct! There had been many depressions in U.S history but, the depression between 1929 and 1939, had significantly affected the American lifestyle. This Great Depression was caused by bank failures, individuals stopped purchasing items, the dust bowl, and the decrease in foreign trade. The Presidents during this timeframe were Herbert Hoover and Franklin Delano Roosevelt.
The Klan had been founded by southern white... ... middle of paper ... ...ts feet this sent the rest of the world into a depression by not being able to export and import goods to or from America. I don’t think anyone benefited from the great depression the people who were best off were wealthy people who were not pulled into the depression. But thanks to America isolating itself from the rest of world it dragged the rest of the world down with it so the whole world suffered as a result. Businesses lost out because they could not export or import thing to and from America. Businesses in America had to shut down because of lack of funds so they owners and workers lost their lively hoods.