The Great Depression 's Impact Socially, Politically, And Economically

2071 Words Nov 29th, 2016 9 Pages
Steinberg 1
Naphtali Steinberg
Goss
His 112-601
15 Nov. 2016

The Great Depression 's Impact Socially, Globally, Politically, and Economically

Economists continue to study the causes of the Great Depression because they still disagree on what specifically caused it. Many theories have been advanced over the years, but there remains no single, universally agreed-upon explanation as to what the root cause was. However, many experts agree that banking played a crucial and single-handedly one of the most important roles into what caused the Great Depression. Furthermore, Americans lost nearly 20% of their deposits when the banks failed. Since there was no FDIC yet, and most state deposit insurance schemes had shut down already, this meant that everyday folks lost their savings.

The effects of the Depression were felt around the world in the social, global, political, and economic, lives of nations and individuals; some of the social and global impacts include; Between 1929 and 1933, the quantity of goods and services produced in the United States fell by one-third, the unemployment rate soared to 25 percent of the labor force, the stock market lost 80 percent of its
Steinberg 2 value and some 7,000 banks failed. When the stock market crashed in 1929, overnight, tens-of-thousands of customers began to withdraw their deposits. However, the banks with no money to lend and loans having to return on them, the banking crises started to excavate rapidly, causing global…
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