The Economic Causes Of The Great Depression

The Great Depression was an economic problem in North America, Europe, and other industrialized countries around the world that began in 1929 and lasted until 1939. It was the longest and most stressing depression ever. The U.S. economy had gone into a depression six months earlier, but the Great Depression had begun with a breakdown of stock-market prices on the New York Stock Exchange in October 1929. The next three years stock prices in the United States had continued to drop, until 1932 it had dropped to about 20% of its value. Other than messing up thousands of individual investors, the decline in the value of good banks and other financial facilities went bad. Many banks were constantly forced to hide their debts, and that’s why by 1933, 11,000 of the United States 25,000 banks had failed. The failure of so many banks was because of the lack of confidence the economy had, which had led to too much reduced of spending and demanding money. This was constantly dropping, and unemployment began rising. By 1932, U.S. manufacturing had dropped to 54% of its money, and unemployment had gone up to between 12 and 15 million workers. The Great Depression began in the United States, but then had turned into a worldwide economic problem.

The United States was trying to come out from the depression as the main one in the depression. National economies had been weakened by the depression itself, but by war debts in Germany and other defeated nations to. So once the American economy had dropped and the money of American investments to Europe was gone, the depression had become worst than nations that were mostly in debt to the United States, Germany and Great Britain. In Germany, unemployment began to raise high in 1929, and by 1932. It ...

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...ing completely out of reserves making it harder to purchase stocks and bonds to improve their businesses.

The Great Depression ended as nations went up on their production of war materials at the beginning of World War II. This had made production better, made more jobs, and put a bunch of money back into business so that the economy would be better again.

What I have learned through this research paper is that the economy will never be perfect. It does not matter how many polices the government makes, people will be people and continue to spend money in ways that could affect the economy. Majority of people require loans today since we have wants and needs in order to live. I do not believe the US economy would ever go back to the times of the Depression since more people have jobs today, there is not one central bank anymore and having a better economic system.