...There were five main reasons that America got in to the great depressions. The largest factor causing the great depressions was the stock market crash of 1929. The stock market crash was when there was a huge decline in stock market values. The reason that the stock market crashed was because it had a large expansion in the 1920’s. so many people invested their money in the stock market. People became so obsessed with putting their money into the stock market that they would mortgage their houses and invest all that money. This obsession to buy shares lasted until the prices on the stock market began to decrease. People began to get worried because they had so much invested in it. The biggest issue was that people would borrow money from banks...
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...RESEARCH QUESTION: How far was the Wall Street Crash the 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]...
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...Great Depression Causes and Effects Introduction: October 29th, 1929 would be a historical day for United States. It was enter in a new period, which was “The Great Depression” period. Great Depression lasted for 10 years. October 24th is known as the “Black Thursday”, because the amount of selling share stock was tripled. The share prices were lower, which caused the crash of the stock market. The collapse of the stock market was thought to be the main cause of the great depression, but many economists do not think so. Great Depression very quickly was spread all over the world. The Great Depression was a period of high rates unemployment, bankrupting banks, lowering prices, and increasing the uncertainty to American nation. Moreover, it brought big changes in U.S politic, society and culture. In the beginning of the Great Depression Hoover was president of U.S. He made a lot of new reforms in order to face the Great Depression, but they were not successful. People were tired with Robert Hoover’s fail. All they needed was a new leader to get them out of that bed situation. Because of these, in the elections of 1929, most of American citizens voted for the Democrat Franklin D. Roosevelt. Roosevelt brought in a lot of changes in economy, politic, social and cultural life of Americans. His major programs were the New Deal (First Hundred Days) and the Second New Deal. These programs were very effective. The number of unemployment rate was lower comparing with...
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...Great Depression Causes and Effects Introduction: October 29th, 1929 would be a historical day for United States. It was enter in a new period, which was “The Great Depression” period. Great Depression lasted for 10 years. October 24th is known as the “Black Thursday”, because the amount of selling share stock was tripled. The share prices were lower, which caused the crash of the stock market. The collapse of the stock market was thought to be the main cause of the great depression, but many economists do not think so. Great Depression very quickly was spread all over the world. The Great Depression was a period of high rates unemployment, bankrupting banks, lowering prices, and increasing the uncertainty to American nation. Moreover, it brought big changes in U.S politic, society and culture. In the beginning of the Great Depression Hoover was president of U.S. He made a lot of new reforms in order to face the Great Depression, but they were not successful. People were tired with Robert Hoover’s fail. All they needed was a new leader to get them out of that bed situation. Because of these, in the elections of 1929, most of American citizens voted for the Democrat Franklin D. Roosevelt. Roosevelt brought in a lot of changes in economy, politic, social and cultural life of Americans. His major programs were the New Deal (First Hundred Days) and the Second New Deal. These programs were very effective. The number of unemployment rate was lower comparing with...
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...Theories post the great depression – attempts to explain the cause The causes of the Great Depression are innumerable. There is no single cause that stands out as the sole reason of this historical event that turned the world on its head. Economists have presented many views and with plenty of plausible economic theories presented, there is no clear winner. The reason for the Great Depression has been researched by economists many times in order to prevent it from happening ever again. There were many theories presented; many discarded. Now, in our present age, the list of theories that explain why the Great Depression became so popular and depressing has been narrowed now to a few main theories other than the Keynesian and Monetarist theories explained earlier. Since the start of the Great Depression the market began to plunge, economists at the time were under the impression that economies were self-correcting, and therefore, impeccable. This was their biggest mistake. They all suggested that economy had to go through a process of ‘liquidation’ before it could recover and grow again. This assumption was based on historical trends in the 19th and 20th century. These economists paid too much attention to what Ronan Keating thought about economy – as peaceful as a lake by the side of a mini golf course. Not very long before the Great Depression, economy rose, and lot of alternate peaks and valleys were created. Economists thought that deflation was the perfect infallible solution...
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...'The USA was hit by the Great Depression in 1929 because of increasing restrictions on international trade.' How far do you agree with this opinion? Use Sources 7, 8 and 9 and your own knowledge. The USA was hit by the Great Depression in 1929 because of increasing restrictions on international trade to a small extent, as it was indeed a significant factor in creating the onset of the Great Depression, as it acted as one of the long-term problems with the US economic system. Source 7 supports this argument, and suggests that it made world trade more difficult as it led to the USA not being able to 'expand its foreign markets as rapidly as its production'. However, other factors could also be considered to have started the Great Depression more significantly, with source 8 suggesting that it was due to long-term problems in the economy associated with a lack of purchasing power and the effects of the Wall Street Crash, along with source 9 demonstrating that it was due to the laissez-faire policies pursued by the Coolidge administration. The USA was arguably hit by the Great Depression in 1929 because of the combination of under consumption and overproduction linked to the maldistribution of wealth in US society during the 1920s. The problem with under consumption was mainly due to the fact that a substantial segment of the population that was farmers and workers in declining industries had not shared in the general prosperity of the early 1920s. In 1929, American farmers...
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...The Great Depression of 1929 which originated in the United States of America was one of the worst times for the history of the USA’s economy.It started by the end of 1929 and lasted till 1933. It started as a recession which was getting worse and industrial output in the USA decreased by 47% and Gross Domestic Product fell by 30%(Duignan3 ). Unemployment had increased more than 20% at the worst times of the depression that lasted until 1933. The Great depression spread to almost every country in the world, ranging from Europe to Latin America and Asia. The causes of the great depression had been very controversial among scholars who studied that period. Ben Bernanke has said before, “to understand the Great Depression is the Holy Grail of...
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...“The Great Depression (1929-39) was the deepest and longest-lasting economic downturn in the history of the Western industrialized world” (The Great Depression-History.com 2012). The great depression is said to have begun after the First World War, It was a time of hardship and uncertainty. Although the great depression began in the United States it spread throughout the globe and affected almost every country. It brought about drastic declines in output, severe unemployment, and serious deflation. Many countries such as Britain, Germany and France came out of the war with large debts to pay, this was due to the fact that they had been borrowing from The United States of America, after its entrance into financial crisis the rest of the countries depending on its financing would inevitably enter down turn and face similar crisis. World War 1 also left many industrialized countries weak and in large debts, they needed to finance the rebuilding of their economies and industries that were damaged during the war, this made it harder for them to recover. There are a number of explanations to as what brought about the great depression in 1929. These are structural and monetary weaknesses as well as a number of specific events that enhanced the effects from one country to another and eventually to all major industrialized countries. What Caused the great depression? The depression was also said to have partially started with the crash of the stock market in...
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...Out of Depression Abstract: The paper is trying to transmit some basic information about Depression, the top 1 mental disease in today’s society. The content includes 5 parts: the definition of depression, its effects on the patients, the family as well as the society, its main causes, the different situation on it in developed and developing countries, and suggestions in dealing with it individually，such as got a big purpose in mind，and discuss on how the whole society should deal with it，such as set up a common fair recognition on Depression. Introduction: Nowadays，with the rapid development of our society, our material lives are far more satisfying. But why people seem less happy than ever before? Complaints arising all the time, psychological disorder cases soaring, suicide rate increasing, we are now facing a new crisis, the mental health crisis, which restrain our pursuit of happiness and even threaten our lives. And according to the surveys, among all those mental disease, Depression has become most wide-spread and threatening one in the world. As it has such a great impact on our life, it is necessary to learn something about it and try to figure out some possible solutions. Have you ever suffered a depressed mood, feeling so sad or empty that you just want to have a long cry? Have you ever lost the interests on everything all at once and felt seemingly endless fatigue? Have you ever felt disappointed or guilty of yourself and call yourself useless? Try hard...
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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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...The Great Depression, while many first think affected the United States, largely affected the entire world economy. Every country that had direct or even indirect ties suffered as a result of America’s collapsing economy. Discussed below are some of the countries affected by the Depression as well as economic changes after the Great Depression. One of the countries most affected by the Great Depression was the United Kingdom. Some even argue that the United Kingdom slid into their Great Depression, called the Great Slump, right around 1918. This year is important, as World War I had just ended. Britain was suffering the turmoil of the war and never fully recovered by the time the Great Depression had hit the United States. Britain heavily relied on exports to other countries. When other countries’ economies took a nosedive, then Britain could not export the numbers that they wanted. As a result, Britain was hit extra hard by the time the Depression hit in the late 1920’s. Unemployed citizens went from an initial one million to just over 2.5 million during the Depression. Some cities saw unemployment rates as high as 70%. These rates began to turn back to normal around 1935 and further fell each year. The outbreak of World War II basically caused the unemployment rate to return to normal, as men were needed to fight the newly developing war. Another country that suffered just as much as the United Kingdom had was France. Causes of their downward spiral were due to an underdeveloped...
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...There are a lot of causes and ways World War II got started. A lot of tension and turmoil from World War I and also from Hitler is what really led up to the world having its second world war. Some causes of the war is Hitler not going by the orders of other countries. Another is the Great Depression that was around the world and led to a bunch of turmoil and bad blood and led up the second World War. One big cause that led up to WWII was the turmoil left behind from WWI. According to the article “The causes of World War II” on sunysuffolk.edu there was an economic collapse and Germany started getting a strong military and disobeying the Treaty of Versailles. Germany was not happy and felt they were being treated harsh and unfair because of...
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...A History of the Great Depression During the 1920s, the U.S faced a time of great prosperity. Often referred to as the “Roaring Twenties”, this period brought many increasing riches and wealth. Many, lulled by the decadence of the era believed that the good times would last forever. Looking back, many would see the naivety which colored their views on what would end up being for many, artificial wealth. For, the 1930’s ushered in an era of economic collapse that would overshadow history and adequately be deemed the “Great Depression”. Ironically, the roaring twenties became a precursor to the Great Depression leading to one of the main causes, the stock market crash of 1929. The economic growth of the 1920s was unparalleled to any previous time. The United States during the 20s experienced a wave of new technology and growth. Silent Films, which could be viewed on one of the newest inventions, the television had experienced a surge of popularity as well as radios. With the increase in factories came new methods of mass production, which made the automobile affordable now to many households (Scaliger). Skyscrapers were beginning to dot landscapes in larger cities seeming to support the notions of the decade that the sky was the limit. Underneath the glitz and glamour, though a startling truth was starting to emerge. The economic growth of the past decade was partially a façade created by an abundance of newly printed money. (Scaliger). Inexperience combined with arrogance...
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...The Great Depression was a time where the United States economy was at it’s lowest , it started in 1929 and lasted 10 years until stability was finally found again. Not only did the Great Depression affect the economy , it affected the lives the US citizens. President Franklin Roosevelt elected in 1932 took measures to fix this economic issue and although it took some time United States of America was back with a stable economy but it wasn’t the same America as before , as the federal government’s role had changed during Franklin Roosevelt's Presidency , President Roosevelt and his new projects and ideas helped America go through this Great Depression and still to this day , it all helped America to still be one of the greatest countries. The Great Depression had not only just one cause but it was different issues that led to this era , a surplus of goods was one of the causes and although it should be the “more the better? it wasn’t the case here . Farmers and other...
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...1. What do you see as the writer’s main point in this draft? State the main idea in your own words. Is the essay focused on causes OR effects (these types of essays do not cover both)? A. It was very clear that the essay was about the causes of depression in winter and with winter comes the holiday season, which can cause a lot of stress and depression for some people. 2. Is the thesis clearly stated? Is the thesis effective (not an announcement, not too broad etc.)? What is or isn’t clear? How could it be improved? A. I think the thesis was very clear and there was a clear understanding that the cause of some of the depression was due to the stress of the holiday season, due to the cooking, cleaning and scrambling to get shopping done, along with the lack of sunlight. 3....
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