Growth of macroeconomic strategies ix. Homelessness, discrimination and racism x.
There are many contributing factors but not one specific event can be pin pointed for starting the depression. It is believed that some events contribute more than others-such as the Stock Market Crash of So many people sold their stocks at a rapid rate that the corporations were unable to pay the shareholders.
Sooner or later a crash is coming which will take the leading stocks and cause a decline from 60 to 90 points in the Dow Jones Barometer. This was a leading causes that assisted the Great Depression become one of the bleakest and most studied events in the history of our country: Another large contributing factor was Mother Nature, I say this because in Oklahoma the weather was so dry that the farmers were unable to harvest their crops: In other areas, the extreme opposite took place: The drastic result of this oversupply made it hard for farmers to make money due to the fact that they had so much that they were forced to sell it at substantial low priced just to remain competitive enough to make even the small profit they were making.
For example when banks had large reserves, they lowered interest rates. Cheaper loans encouraged manufactures to invest in new equipment and hire additional workers.
The resulting expansion of production caused an upswing of the cycle. That discouraged investors and slowed the economy down.
Another good explanation was the bad distribution of wealth for the cycles. During these challenging and difficult times the rich opted not to spend there money: This resulted in increased investments, more production, and eventually more goods piled up on shelves and warehouses.
Prices fell, production was cut back and workers were discharged. As a result, the economy entered the depression phase of the cycle.
The crisis stage of the cycle was brought about by bank failures and by irrational selling of stocks ;thus causing business failures, a slowing in production, a rise in unemployment, and an overall optimistic view about the future.
Lionel Robbins was a professor at the London School of Economics. An example of Robbins philosophy was that the monetary confusion and rampant inflation after the war had hampered.
Many policies that the government put out hurt and slowed the recovering economy. One act known as the American Hawley-Smooth of crushed the European industry which was already unstable from the depression.
It stopped European trade and prevented European from earning the almighty dollar. This Act also destroyed any possibilities of regaining the money loaned to them during World War I. The collapse of the German Banking system in had monumental affects on the entire world.
It aided to turn, what would have been, a small economic problem into the Great Depression. They claimed the reparations brought down the economic vitality of their country to an all time low. Not one single book I have read has blamed any one specific country for the start of this catastrophe.The Great Depression was a worldwide catastrophe whose causes and consequences alike were global in character.
"The primary cause of the Great Depression," reads the first sentence of President Herbert Hoover’s Memoirs, "was the war of –".
“The Great Depression was a period during the s when there was a worldwide economic depression and mass unemployment.” (urbanagricultureinitiative.com) The timing of the Great Depression varied across nations, but in most countries it started in and lasted until the late s or middle s.
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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 . Great Depression The great depression was one of the worst disasters that occurred in U.S history. October 29, , is the day the stock market crashed, and that day was the beginning of .
The Great Depression – The longest and deepest downturn in the history of the United States and the modern industrial economy lasted more than a decade, beginning in and ending during World War II in