Great Depression In America

707 Words3 Pages
A dark time in America, it took arguably the worst event in history to end what was, unfortunately, not the end of suffering. The Great Depression summarizes what most Americans were feeling at that time, when the major weaknesses in the modern economy were exposed as America’s credit structure, the feared reality of overproduction, and the government’s misguided economic actions compounded to create an inevitable catastrophe.
A glaring reason in hindsight, the Great Depression spread worldwide because of America’s credit structure, both national and international. Farmers, who belonged to an already failing economy, relied completely on loans from American banks, which could barely support themselves since many farmers were deep in debt,
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Even though it relied upon a multitude of industries to support it, such as glass, rubber, and oil, these industries also relied on the automobile’s success. The American government had relied almost solely on the automotive industry, while any industries that could have recovered the economy were not fully developed. The pillars of American industry were stacked on top of one another, rather than supporting the expanding economic base. The stock market crash simply was what pushed the tower down, bringing the entire world economy with it. However, a factor that made the Depression much worse, was the misguided attempt by the Federal Reserve to improve the American economy in 1931. By raising interest rates on the dollar, the Depression was ironically made worse. Though it may have been possible to salvage the economy if the government performed the reverse, the U.S., at that time, was the most powerful nation in the first postwar world economy. What may seem glaringly obvious, was only being first experienced by the economists of the late 1920’s. Franklin Roosevelt himself falsely predicted continued growth, only months before one of the greatest, unexpected economic failures in

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