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Essay on The Causes and Consequences of the Great Depression

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❶Follow us Essayshark on Facebook. Introduction The great depression essay in front of you offers a detailed summary of what caused the Great Depression that took place between and - a period of worldwide economic crisis that began in the United States of America.

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The Great Depression key events/summary of events
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From to around the s, a lot transpired across the globe. It was a dark period, which for many is better not remembered. Our great grandparents and grandparents talk about this era and you can automatically feel the pain in their voices. It was not all dark though, there were moments of fun and happiness such as the roaring 20s even if it was short lived. It is difficult to understand why so much hate prevailed, however, a closer look reveals a common factor, politics and superiority.

Humans are megalomaniac by nature, there's no doubt about that - who wouldn't want some power for themselves. And so, when we submit to our instincts without any consideration for the consequences, the results are often disastrous. The Great Depression just like the other occurrences of that period in history are a result of politics, selfishness and greed.

There are numerous angles from which one can analyze the Great Depression, and therefore you will often come across a variety of essay about the great depression. These are just but to mention a few.

Note from the above list, there's a mention of Canada. This was because it was among countries that were terribly affected by the economic crisis. After the US when into recession in , Canada followed suit immediately. This is probably because her main trading partners were Britain and the United States who were already in a crisis. The economic struggles faced in this country were dire at households had to struggle to barely survive. Food lines were a common thing as a significant percentage of the population relied on the government for support.

From the above, it is explanatory why you will also come across "the great depression in Canada essay". In , the prosperous United States was faced with a worst economic crisis. In the years leading to the Great Depression, America was a glamorous and blooming nation, a period commonly referred to as the roaring 20s.

That was not to last, the Great Depression came, and it became nothing but desperation and starvation. For a society that valued success to the extent that it was a measure of self-worth, a lot of people got depressed and felt humiliated. Not being able to provide for your family is a bummer even at this age which would explain why most people felt shame.

The United stated was not the only country affected by the turn of events. It was a worldwide economic depression that saw industrialized economies such as those of France, Japan, Italy, Germany and Britain brought to their knees. Germany, in particular, was already in a crisis as they were experiencing hyperinflation. To make the situation worse than it already was for Germany, France and Britain demanded that they pay them World War I reparations which were exorbitantly large.

The period from to , saw the United States have four different sitting presidents before relief could come. It was during President Franklin Delano Roosevelt era that relief came. The New deal saw Americans faith in the banks restored, and laws passed to restore the economy back to where it was. Although the New Deal worked for some time and reforms done on it to make it even better, it eventually collapsed.

It led to what came to be known as "Roosevelt Recession", this was in It is almost ironical that what saved a starving and desperate nation was war. This was in December of Things took a better turn, and America began its economic recovery to the beaming success it is now. So, what led to this dark era? A combination of factors led to the Great Depression. A look at the series of events that took place between and , it is evident that politics and leadership contributed significantly.

From to , the United States had four presidents: Each had their own policies and agenda that contributed to the Great Depression. Leaders have the responsibility of guiding the society to survival, success, happiness and overall fulfillment of life. Therefore, they will each create policies that will enable them to be in a position to do so. President Harding came to power in and passed on unexpectedly in He was replaced by President Coolidge.

They both shared similar conservatism principles economically and politically. The result was that big businesses became successful once again. However, corruption became a problem, especially during Harding's presidency. Moreover, the fall of the margin requirements began to rise, and borrowers had to pay in cash most of the cost of the purchased shares Smiley , p. So, the argument about the leverage does not hold water. However, the manipulation with money and credit flows is an absolutely different matter.

Most economists-monetarists, in particular the representatives of the Austrian school, note the close relationship between cash flow and economic activity. When the state makes cash and credit injections, interest rates fall at first. Companies invest this easy money in new projects in the production sphere and the commodity market is booming. With the stabilization of the situation, the costs of doing business rise, interest rates are adjusted upward, and profits fall.

Thus, the effect of easy money comes to naught, and the monetary authorities, fearing of price inflation, slow down the money supply growth or even reduce it. In any case, these manipulations are sufficient to deprive an economic card-castle of its shaky foundation Reed , p. According to Rothbard , such an increase of money and credit flows led to a reduction in interest rates, brought the indexes of the stock market to unprecedented heights and created the phenomenon of the roaring twenties.

Unrestrained growth of the credit monetary mass became what the economist Benjamin Anderson called the beginning of the New Deal — the well-known interventionist policy carried out later by the President Franklin Roosevelt.

However, other scientists doubt that the Fed move was the cause of inflation, and point to relatively stable prices for raw materials and consumer goods in , which, in their opinion, suggests that monetary policy was not so irresponsible Higgs , p.

Of course, a significant reduction of the high income tax rates under Coolidge helped the economy, and perhaps smoothed the price effect the FRS policy. The tax reduction stimulated investment and real economic growth, which further led to new technological breakthroughs and business inventions in terms of production cheapening. Undoubtedly, the booming growth of labor productivity had a stabilizing effect on prices, which would otherwise be higher Reed , p.

The actions of federal authorities in response to the recession only led to its aggravation Higgs , p. It was a complement to the Fordney-McCumber Tariff of , which led the American agriculture to a crisis in the previous decade.

Smoot-Hawley Tariff, the most protectionist bill in the U. Officials from the administration and Congress were convinced that putting trade barriers would make the Americans buy more domestic commodities and this would finally solve the unemployment problem. But they apparently did not know an important principle of international trade: In general, the distortions in the economy caused by the FRS monetary policy led the country to the path of recession, but the further steps of the state turned a recession into a full scale disaster.

Thus while the quotes were collapsing, Congress was playing with fire: In turn, Roosevelt, indeed, made some changes, but they were apparently not the changes the country hoped for. In his first hundred days he took severe measures to limit profits.

Instead of removing the barriers to the growth of wealth erected by his predecessor, he created his own ones. He weakened the U. Almost all the bankrupted banks had worked in the states with branchless system laws these laws prohibited banks to open branches and thereby diversify their portfolios and reduce risks.

In , Roosevelt persuaded the Congress to establish a Social Security system, and in to introduce the minimum wage for the first time in the history of the country. Although the general public still puts these measures to his credit, many economists have another point of view.

As a result of the introduction of the minimum wage, many inexperienced, young, unskilled and vulnerable workers became too expensive for the employer according to some estimates, the provisions on minimum wage adopted in under another law, left unemployed about , African Americans Smiley , p.

And current researches and evaluations show that the Social Security system has evolved in such a nightmare that it will be necessary either to privatize it, or raise the already high taxes to keep it afloat Edsforth , p.

In general, as a result of his efforts, the economy was depressed till the end of the decade. The Great Depression had important consequences both for the U. The actions of the government led not only to the limitation of free international trade, but also to the significant decrease in the inside free entrepreneurship activity: But, undoubtedly, the greatest burden of the economic crisis objectively rested on the shoulders of ordinary citizens.

The massive decline in industrial production, the closure of tens of thousands of factories, mines and huge underemployment of production facilities — all this led to a tremendous increase in unemployment. If we add the fact that the U. Many people faced a real threat of starvation. People lost the faith in themselves, their power and for a long time were in a state of psychological depression, which was much worse than the economic one McElvaine , p.

However, the situation of people who kept their job was not much better. The constant oppressive feeling of insecurity and fear of losing their jobs was supplemented with the constantly lowering wages. In addition, despite the fact that carrying out economic reforms newdealers were guided primarily by pragmatic considerations a certain objectively historical pattern loomed in their actions: Thus, the reforms proved to be a tool to strengthen the state-monopolistic nature of American capitalism.

In general, the inefficiency of the financial and economic measures of the New Deal brought the advent of the new economic collapse in Bordo , p. The depression immediately spread to the European economies, but Europe really felt the whole force of the impact in It was an especially hard time for Germany depending on the depleting American loans and investments.

Unemployment in the country reached 6 million people Gates , p. Within weeks, the crisis followed in Britain; it also impacted less industrialized nations such as France and Italy.

With the sharp decline in demand for many products — such as coffee, sugar, cotton and silk — most of exporters got impoverished, from Brazil to Japan Gates , p. In Britain the Labour government fell, and the party itself was split.

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6. Causes of the Great Depression i. World-wide and domestic factors 6. Summary of the effects of Great Depression 7. Conclusion 8. Works Cited. The Great Depression. Background. The great depression is an immense tragedy that took millions of people in the United States from work.

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“The Great Depression of the ’s was a worldwide phenomenon composed an infinite number of separate but related events.” The Great Depression was a time of poverty and despair caused by many different events. Its hard to say what caused this worldwide depression because it’s all based on opinion as opposed to factual data.

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The Great Depression - This paper is about the Great Depression and how President Hebert Hoover plan was unsuccessful in dealing with the depression. Also, how the Great Depression affected the women in the United States. In the ’s is when the Great Depression begun. The Great Depression and the Dirty Thirties Essay examples - There were many causes of the Great Depression (need help on the first sentence). Yes, the stock market crash was a main reason of the Depression, but it actually began long before that, with the Roaring 20’s.

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The Great Depression. The Great Depression was the worst and longest economic downturn in the history of the world economy. The Depression began in and lasted until This economic meltdown affected Western industrialized economies but its effects spread across other nations. The great depression essay in front of you offers a detailed summary of what caused the Great Depression that took place between and - a period of worldwide economic crisis that began in the United States of America. From to around the s, a lot transpired across the globe.