Depression Essay : The Economic Impact Of The Great Depression

Following the economic boom of the 1920s, there was a period of economic depression. The United States and its citizens were greatly affected. There were many economic problems that occurred such as unemployment rate rising tremendously and many more. Herbert Hoover and Franklin D. Roosevelt were presidents during that time and dealt with the economic problems. They helped create programs to financially stabilize the country again. The Great Depression ended when the United States entered World War II.

The stock market crash of 1929 sent the nation spiraling into a state of economic paralysis that became known as the Great Depression. As industries shrank and businesses collapsed or cut back, up to 25% of Americans were left unemployed. At the same time, the financial crisis destroyed the life savings of countless Americans (Modern American Poetry). Food, housing and other consumable goods were in short supply for most people (Zinn 282). This widespread state of poverty had serious social repercussions for the country.

How does one keep faith in a country during times of destitute and agony? In 1929, the stock market crashed. Poverty struck the country fast like the huge dust storms in the west. The new president, F.D.R, promised to relieve, recover and reform the country with various organizations. Churches and other groups set up food lines. F.D.R’s main goal was to put every American to work. The dilemmas of the Great Depression were soon set out to be handled by actions by the federal and state governments.

The Era of the Great Depression was one of both desperation and hope. Americans were desperate for a change, desperate for anything to come along that may improve their situation, yet hopeful that the light at the end of the tunnel was near. For many of those living in poverty during the 1930s, the “radical” leftist movements seen throughout the country appeared to be alternatives to the sometimes ineffective programs of FDR’s New Deal. Two such programs, Huey Long’s “Share Our Wealth” plan and Upton Sinclair’s End Poverty in California (EPIC) were fairly popular, mainly for their appealing alternatives to the

     The Great Depression was a huge economic downfall in North America and involved many other industrialized countries of the world. The Depression began in 1929 and lasted for about ten years. Millions of people lost their jobs along with many businesses going bankrupt. The common misconception of the Great Depression is people think that the stock market crash was the main cause for it. There were many causes for the Depression; unequal distribution of money during the 1920’s was the main cause of the Depression. This unequal distribution happened on many different classes of people. The imbalance of money is what created such an unstable economy. The stock market was doing much worse than people thought

Since the beginning of the Industrial Revolution early in the nineteenth century the United States ad experienced recessions or panics at least every twenty years. But none was as severe or lasted as long as the Great Depression. Only as the economy shifted toward a war mobilization in the late 1930s did the grip of the depression finally ease.

Many people speculate that the stock market crash of 1929 was the main cause of The Great Depression. In fact, The Great Depression was caused by a series of factors, and the effects of the depression were felt for many years after the stock market crash of 1929. By looking at the stock market crash of 1929, bank failures, reduction of purchasing, American economic policy with Europe, and drought conditions, it becomes apparent that The Great Depression was caused by more than just the stock market crash. The effects were detrimental beyond the financial crisis experienced during this time period.

The world had faced two main economic problems. The first one was the Great Depression in the early of 20th Century. The second was the recent international financial crisis in 2008. The United States and Europe suffered severely for a long time from the great depression. The great depression was a great step and changed completely the economic policy making and the economic thoughts. It was not only an economic situation bit it was also miserable making, made people more attention and aggressive until they might lose their lives. All the society was frightened from losing money, work and stable. In America the housing market was the main factor of the great depression. A crisis of liquidity appeared in the banks forming a credit crunch. This period was influenced by over extended stock market shortage of water in the south and over trusting. The American government put down some regulations to control the productions which were essential for the war.

In Germany the economy was especially vulnerable since it was built out of foreign capital, mostly loans from America and was very dependent on foreign trade. When those loans suddenly came due and when the world market for German exports dried up, the well-oiled German industrial machine quickly ground to a halt. As production levels fell, German workers were laid off. Along with this, banks failed throughout Germany. Savings accounts, the result of years of hard work, were instantly wiped out. Inflation soon followed making it hard for families to purchase expensive necessities with devalued money. Overnight, the middle class standard of living so many German families enjoyed was ruined by events outside of Germany, beyond their control. The Great Depression began and they were cast into poverty and deep misery and began looking for a solution, any solution. By mid-1930, amid the economic pressures of the Great Depression, the German democratic government was beginning to unravel. The crisis of the Great Depression

The depression of 1929 in the United States was considered a global change of the economy because some countries depended on american loans, such as Germany. The German economy was vulnerable due to the fact that it was built in foreign, mainly american, capital. That is why 1929 was one of the worst inflations Germany had ever experienced. The loss of confidence created overseas made the United States rapidly withdraw the money Germany relied on. The German situation was critical; banks were closing, production levels fell, and inflation was the only thing on people's mind. As explained by Broszat, "every tenth person out of some 2.5 million employed in a total population for Greater Berlin of 4.3 million was without a job." This demonstrates

Many historians believe that the economic crisis of 1929 helped the Nazis to power. The Nazis claimed to have the answer to solving Germany’s economic problems, so it was important for them that this was shown to be true. The most important was the problem of unemployment. Once

There were many primary causes for The Great Depression, Unequal distribution of money to the economy,

Imagine waking up one morning, only to find out that all your investments and savings are gone. So if your bank that you invested all your money in collapsed, you didn’t get any money back. This is what happened to millions of Americans during the 1930s. This era was called the great depression.

According to Deutsche Welle, Germany’s international broadcasting medium, 12.5 million people were living in poverty in 2014. Similarly, Germany encountered a similar hardship preceding Hitler’s reign: according to German Historian Dietmar Rothermund, extreme war reparations were placed on Germany, as they were falsely blamed for the entirety of World War I. In attempt to resolve the matter quickly, the Weimar Republic chose to print money in excess in order to pay them off. Consequently, by 1930 the combination of hyperinflation and deflation caused the depreciation of the German mark, which lead many employers to dismiss their employees from work entirely (Rothermund). Historian Laurence Rees states that in January 1930, now entering the Great Depression, over three million were unemployed; two years later, the number had doubled (58). Famine swept across the nation, and many lost their lifetime savings (840). The similar conditions mentioned in Look Who’s Back lead to the citizens losing trust in their

Although, the German economic stabilisation was over-dependent on US loans, which allowed for short-term development but will lead to long term issues when facing the repayment of loans; this was considered a major issue by the leadership of Germany at the time, primarily Gustav Stresemann, who can be quoted as saying that "The economic position is only flourishing on the surface. Germany is in fact dancing on a volcano. If the short-term credits are called in, a large section of our economy would collapse.” which suggests that the German development was simply a façade put in place by the development given by the US loans to cover the imminent threat of repaying loans and the growing threat of unemployment as the population increases. Also, due to the end of hyperinflation, the farming industry suffered dramatically as prices of food experienced a depression with the fall in prices. Along with this, the German industry began to slow down in 1927 as the Great Depression began is the US, forcing the end of the loans that they depended on so heavily – crippling the German