...understand why they happen and better the future. In the United States in the early 1920s, a new stage appeared with different movements in the areas of politics, economics, society, culture, and foreign policy. By the events that led to the 1930s, new crazes had developed in many of these areas, while other areas remained in continuity. From the 1920s to the 1930, there were several factors that contributed to the changes in American society. The 1920s began shortly after in World War I when the United States and the Allies defeated the Germans in 1918. Many Americans were fed up with Woodrow Wilson, the 28th president from 1913 to 1921. The first election of the 1920s scoured Republican Warren G. Harding against Democrat James M. Cox. Cox supported Wilson and the League of Nations in the election. However, Harding won the election in a landslide, which was a sign of America¡¦s frustration with Wilson and his optimistic and liberal policies. The start of the new conservative era restored the power to the Republicans after the presidential election of the 1920. Harding made quite a few excellent appointments to his cabinet although he failed to demonstrate to have much intelligence. Charles Evans Hughes was appointed to be the Secretary of State, Andrew W. Mellon appointed as the Secretary of the Treasury and as leader of the Commerce Department, and Herbert Hoover bumped up the 1920s to a new level. On the other hand, Harding also appointed some of the worst positions...
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...reputation of Harding administration Calvin Coolidge-republican lawyer, conduct during boston police strike of 1919 gave him reputation of a man of decisive action. Soon after elected as 29th president to succeed Harding in 1923, gained reputation as a small-government conservative, and also a man who said very little. Herbert Hoover-republican candidate who assumed the presidency in March 1929, promising Americans prosperity and attempted to deal with the Depression by trying to restore public faith in the community. “rugged individualism”-moral stance, political philosophy, ideology, or social outlook that promotes the exercise of one’s goals and desires and so independence and self-reliance. Republican Decade-The decade after WWI where there were 3 Republican presidents: Warren Harding, Calvin Coolidge, and Herbert Hoover. Laissez-faire-the type of economy where government does not interfere because the businesses are supposed to know what’s best for the economy; businesses do their own thing and government does not interfere. Great Crash-book written by John Kenneth Galbraith depicting the economic lead up to the Wall Street Crash of 1929. Argues that the market crash was able to be seen by the rampant speculation in the stock market,...
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...Assignment The Great Depression Kathryn R. Glenn Benedictine University-MBA 510-D532 Economics Ray Bell, Ph.D., Instructor 05/26/2012 WEEK 04- WRITTEN ASSIGNMENT Abstract The economic collapse of 1929, also known as the Great Depression, was the worst economic disaster in the entire history of the U.S. It put millions of people out of work, and made people homeless and hungry. Food and job lines were nearly endless in the cities. The Great Depression was a horrible time for most of Americans. Many people lost their jobs and a lot of businesses closed. This job loss forced many Americans to becoming migrant workers. Based upon research, this paper will explore the root causes that led to the Great Depression and how the late 1920’s leading up to the Great Depression are in contrast to our current economic system. In addition, this paper will examine how the Keynesian economic theory was used to fight the Depression and its effectiveness. Finally, this paper will examine the current U.S. economy to determine if this country could be headed for another Depression in the near future. WEEK 04- WRITTEN ASSIGNMENT Introduction The Great Depression was an economic slump in North America, Europe, and other industrialized areas of the world that began in 1929 and lasted until about 1939. It was the longest and most severe depression ever experienced by the industrialized Western world. Though the U.S. economy had gone into depression six months earlier, the Great Depression...
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...main cause for the Great Depression? A. Plan of the Investigation 1 B. Summary of Evidence 1 C. Evaluation of Sources 3 D. Analysis 5 E. Conclusion 7 F. Bibliography 8 A. Plan of the investigation The investigation considers the extent to which the Wall Street Crash was the main cause for the Great Depression that hit the Unites States throughout the 1930s, whose effects were spread worldwide. For this purpose the investigation assesses the significance of the crash in the stock market in relation to other factors that were also relevant. Through the selection and summary of relevant written sources, the investigation examines the 1920’s the domestic and international problems during the “prosperous” years that triggered the crisis. In order to reach a conclusion two of the sources: The Great Depression by Lionel Robbins and The Great Depression and The New Deal by Robert F. Himmelberg are evaluated for their origin, purpose, values and limitations. Word count: 120 B. Summary of evidence By the time the United States entered the First World War in 1917, the USA was the world’s biggest economic power[1]. Its role in providing extra equipment and a supply of fresh soldiers was instrumental in the final Allied victory[2]. The artificial prosperity of the war years was followed by an inevitable collapse[3]. After a short recession between 1920 and 1922, the USA...
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...The 1920s were a decade characterized by great change. Even though it was the decade after world war 1, it was almost 10 years of improvement for many Americans. Industries were still thriving in America and they were actually richer and more powerful than before World War I. So what event made the 1930’s so different? The Great Depression quickly turned those carefree years into ones of turmoil and despair. The decade after the first world war ever saw tremendous change. Progressivism was a leading factor of World War 1 and in the 1920’s the evidence can be seen. Industries were making their products at an increasing rate. Products that were not popular before World War I were now used by millions of Americans. Cars were only used by about 9 million Americans and by the end of the roaring 20’s that number had reached over thirty million. Also many new inventions were created making life for Americans much easier. Radios, vacuum cleaners, irons, washing machines, and refrigerators were the new electronics that everyone had to have. Refrigerators allowed for better production and transportation of food products. This allowed you to keep food cold and fresh making exporting food a valuable part of the economy. These new inventions were making home life easier for men and women. Not only were American families buying these new items but they also started purchasing stock in companies at an increased rate. Buying stocks was available before the war but was not really done. Soon...
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...learned something about the great depression and the effects it had on the United States. There are a list of issues the created the great depression, but have we actually thought about it, and tried to understand it before? In the 1920’s the American economy was going strong, for the most part, and the vast majority of Americans had witnessed economic growth, however, stock prices fell, more and more issues arose, and then came the great depression which created uneven distribution of wealth and an irrational behavior from the stock market. In the film, Matewan, it brought up how things were tough in response to effort by the miners to organize labor union, and they were receiving huge cuts in their pay, and some of the coal mine workers were being replaced, which I would assume were being paid substantially less than the original coal miners were. The new workers were African American from Alabama, but they did not make it far because the coal miners were on the attack. I would imagine this was not the only issue America was facing before or during the great depression. The crash of the stock market not only affected the poor, it affected the rich as well, but like I stated before, one of the biggest issues was the gap between the rich working class people and how it was enlarged. Also, production costs fell quickly and wages rose slowly and prices remained steady. Obviously, like most problems in America, the government contributed to the depression as well. The federal income...
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...THE CAUSES AND EFFECTS OF THE WALL STREET CRASH AND THE GREAT DEPRESSION The economic boom of the 1920’s came to a sudden end in October 29, 1929. In June 1929 prices of stocks and shares had reached new highs. The Stock Market seemed to be a quick and easy way to get rich. The Stock Market is the place where stocks are traded. More and more people wanted to ‘play the market’ (Buy and sell stocks). [pic] The Wall Street stock market (located in New York City) was not regulated .Anybody could buy shares and they could be bought ‘on the margin’-This is when the stock broker and the stock holder merge their money to buy stocks, for example, people could buy $1000 worth of stocks for only $100 and borrowed the rest from stockbroker. Buying on the margin became a common practice. People waited for the share prices to go up again and then resold their shares for a profit. It was usually easy to pay back the loan and still make money. The day of the crash: By the summer of 1929 there were 20 million shareholders in America and prices continued to rise. But in October 1929, things began to change. Some people realized that share prices had risen too high and wanted to sell before they fell. THE CAUSES OF THE WALL STREET CRASH 1. OVERPRODUCUCTION- New mass-production methods and mechanization Meant that production of consumer goods had expanded enormously. In fact, there was overproduction (more being made than could be consumed).The market was becoming...
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...Today America is a consumeristic society, but this very American idea of materialism started and changed American Lifestyle 1920’s. Industry was exploding and new innovations such as credit, shopping malls, refrigerator, vacuum cleaners, and radio. These inventions were the “must have” items that everyone was now required to own. But this idea of needing more and not worrying about the consequences, led to the Great Depression, one of the hardest economic times in American history. This idea of mass consumerism and materialism is also apparent in The Great Gatsby. Gatsby’s character was largely influenced by his wealth and his need for more. Illustrated by Gatsby’s need for Daisy Buchanan that resulted in his decline and ultimately his death....
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...The World Wide Depression The nineteen thirties was an era of unemployment. This was a worldwide depression caused by matters such as unregulated wall street, world war one, poor sectors in the economy, and isolationism. The depression was the biggest economic fall in American’s history. This crash stretched throughout the globe and affected the rich as well as the poor. There were many causes that assisted in bringing the depression into existence. However, one of the main causes was the disproportionate riches during the nineteen-twenties. The gap between the rich and the working class people was the enlarged industrialize production during this period. In addition, this periods production cost fell quickly as wages rose slowly and prices remained steady. Following world war, one arrived what we know of today as The Jazz Age. It was movement from the 1920’s that emerged dance and Jazz music. This age glorified city life. Americans and many African American sharecroppers from the South left their farms in record numbers to live and work in places like Chicago and New York City. F. Scott Fitzgerald called it a time when "the parties were bigger, the pace was faster, the buildings were higher, the morals [reduced]". This era was also known as the "anything goes “period, which emerged in America after World War I. “The unbounded optimism of the Jazz Age and the shocking consequences when reality finally hit on October 29th, ultimately lead to the Great Depression” (PBS). Beginning...
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...I. United States of America economic history In order to successfully move forward, we need to look to the past. The country’s economic history is like all history, meaning that it examines and observes the past activities of mankind (Fite 4). The most significant periods in the United States economic history are actually the three centuries before England settled in America. There were four changes happening in Western Europe that have greatly influenced America. Those changes were economic, political, religious, and intellectual (Fite 15). So why were these changes so important? They were the reasons that England decided to explore and expand in the western part of the world. The decision to expand trade and commerce was the most important advancement in the history of economics (Fite 15). From the time that the Virginia colonies were settled in 1609 up until 1890, farming was the most important aspect of the United States economy (Fite 30). Although manufactured products were worth more than products produced on a farm for the first time in 1889, farming was how the majority of Americans made a living (Fite 30). Despite the fact that agriculture dominated in these early years and the industrialization of the colonies was well under developed, “there was a high degree of specialization in the colonial economy” (Fite 63). For example, there were tobacco crops in the southern colonies which were crops that produced money, and in the northern colonies there was international...
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...Buying on Credit in the 1920s Leads to the Great Depression in the 1930s The citizens of the United States started buying on credit in the 1920s all over the United States because there was a great economic boom. When the United States citizens started buying on credit they did not know that it was going to take a turn for the worst. In the 1920s the economy was booming with new industries and new methods of production. America was able to use a large supply of raw materials to produce chemicals, steel, glass, and machinery in which it became the structure of a massive boom in products. Stores started to sell lots of goods which made the value of stocks rise. Therefore many United States citizens started to invest in the stock market with borrowed money assuming that they would make a fast profit. Thinking they could pay the loans off when they sold the stock. There was more people invested into the stock market in the 1920s then there ever was before. They started buying cars, refrigerators, and other luxury items with money they did not have. The economy eventually quit booming and people could no longer buy things because they had spent all their money into paying off their credit. This left millions of people in debt and many people ended up losing their jobs. The stock market crashed and the economy started to collapse inflammation started and the United States entered the Great Depression. Supply and demand helped lengthen the Great Depression. American farms and factories...
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...History: 102; The main causes of the Great Depression Name: Tutor’s Name: Institution: Due Date of Submission The Great Depression was the nastiest economic slump in U.S. history, and that spread over to the industrial world (John 1960). It began in late 1929 and continued for about a decade. Many factors led to the depression, but the main cause was the blend of unequal distribution of wealth in the 1920s and the widespread stock market speculation in the latter part the decade (Roberts 1984). The misdistribution of wealth in the 1920's created an imbalance of wealth that further created an unstable economy (Mark 1992). The extreme stock speculation kept the stock market falsely high that eventually lead to rashes in a large market. These extensive market crashes, coupled with the misdistribution of wealth, led to the capsizing of the American economy (Judith1996). On wealth misdistribution, the rich controlled much of the wealth in the U.S leaving the poor with little to share among themselves (Mark 1992). A major reason the enormous and rising gap between the rich and the working-class was the increased manufacturing output throughout the depression era (Frank 1986). From 1923-1929, the regular output per American worker increased 32% in manufacturing and time usual wages for manufacturing works increased only by 8% (John 1960). Hence, the increase of wages was only at a rate one fourth per increase in productivity. Moreover, with dropping production costs there was...
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...Fashion of the 1930’s In the 1930’s fashion was at its peak. The fashion showed the elegance and beauty of the United States during a time of depression. During the 1930’s, fashion began to have a ready to wear mentality. The United States was just beginning the Great Depression and trying to adjust to a life with very little. The American people had to find cheaper ways and places to buy and manufacture clothes, especially after the stock market crashed (Dudbrige). Most of the inspiration for the fashion came from films which impacted the culture (Lewis). Most of the designers that designed for these films were located outside of the country where the bulk of the fashion industry was located (Lewis). In the 1930’s, fashion impacted the country...
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...The 1920’s were a turning point in American society, a time that ignited consumer culture, partying, and optimism, rightfully earning the title of “The roaring Twenties”. However, they were also a time of reckless behavior and cluelessness, a time of, “more more more”, when even the best did not seem good enough. This complicated time full of contradictions and the prosperity after World War I, is visible through F. Scott Fitzgerald’s 1925 novel The Great Gatsby. Fitzgerald effectively illustrates this optimistic, yet reckless consumer culture mood of the 1920s through the character Jay Gatsby. A lot like the general mood of the 1920’s, Gatsby has this drive toward something bigger and brighter, a goal that is ultimately achievable. Jay Gatsby’s goals and aspiration are all dictated by one common...
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...The Great depression In the 1920’s the stock market seemed to be the pot of gold at the end of the rainbow for many investors. While using credit or their life savings it slipped people’s minds that stocks were and are no guarantee of return on investment. In March of 1929 the first mini-crash hit the stock market. But it wasn’t until October 24 of that year that the first big crash happened. The day known as “Black Thursday” saw almost 13 million shares being sold, but through the bedlam bankers investing their own money calmed the situation and people started buying again. However by Tuesday the 29th the stocks had crashed again as over 16million shares were sold. This was the start of what would be known as the great depression. From 1929 until 1939 America suffered the greatest economic crisis the country had ever seen and is perhaps the worst even to this day. During that 10 years unemployment reached nearly 24 percent. Amazing and horrifying considering the average rate is about 4 or 5 percent. In the beginning there was no minimum wage, no unemployment benefits and no welfare. It is estimated that the average wage was around .05 to .20 cents an hour for those lucky enough to have steady work. With gas around .15c per gallon, eggs .18c a dozen, and bread .08c a loaf feeding your family was possible but was definitely not extravagant. The economy slowly saw improvement until 1937 when another recession hit. It wasn’t until the outbreak of World War II in 1939 that the...
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