Causes Of The Great Depression Essay

Causes Of The Great Depression Essay
Causes of the Great Depression
Many people think that the Great Depression was caused solely by the stock market crash. Anybody who tells you this probably didn't pass U.S.
History in high school. The fact is, the Great Depression was caused many different factors. Four of which were overproduction, uneven distribution of
wealth, protective tariffs, and the four "sick industries" of the 1920's.
After World War I, newtechnological improvements helped factories to produce higher quantities of goods using smaller amounts of employees. Fewer
workers meant less money being redistributed to the consumers to purchase products. America didn't have a necessity for this higher quantity of goods
with less people ... Show more content on Helpwriting.net ...
In reaction to this, other nations stopped buying American–made goods and the United States' economy floundered because of this.
During the 1920's, four of America's leading industries began to struggle. First, railroads had difficulties because of the growing competition from cars,
trucks, and busses. Second, textiles floundered because of the foreign competition from India, China, Japan, and Latin America. Furthermore, the
revolutionary transformation in women clothing reduced the amount of material needed and thus lowered the demand for cloth. Third, the coal mining
industry struggled because of competition from cheaper, more widely available resources such as natural gas, oil, and hydroelectric power. Fourth,
America's agriculture industry staggered chiefly from overproduction. Many farmers borrowed money to expand their operations and couldn't pay back
their loans because the prices of crops dropped about 50 percent due to foreign agricultural competition.
In conclusion, the Great Depression can't be attributed to just one cause. However, among overproduction; uneven distribution of wealth; protective
tariffs; and the struggling of America's leading industries, the largest contributor to causing the depression, in my opinion, was the unequal distribution
of income. I believe this because if congress attempted to redistribute money to the consumers, people would have been able to purchase
... Get more on HelpWriting.net ...

Compare Today's Economy To The Great Recession
In the December 19, 2008, Smart Money Editorial, the article "Current Recession Is no Great Depression (We're being excessively pessimistic),"
Donald Luskin's purpose is to illustrate how people compare today's economy to the Great Depression and he argues that there is no comparison. In
paragraph 1 through 4, he states that the recession impacts the economy but not as much as the Great Depression did, were almost everybody struggle
for not having food and employment, in this case Recession made the stocks cheaper and because of the low prices, people were exaggerating that this
will lead to the depression again, but it is not , he explains that the nation already learned how to avoid that kind of horrible economic catastrophe,

The Stock Market Crash Of September 27
History Essay:
Introduction The stock market crash of October 27, 1929, marked the turning point in America's economic history. The prosperous nature of the 1920's
was no longer as America suffered its longest and most severe depression in its existence. Despite actions taken by the government to counteract the
economic collapse; inevitably, the depression left 25% of America's population unemployed and millions hungry as agricultural stocks plummeted. The
practice of "Buying on the margin" exposed the flaws in America's economic system and the consumer mindset which once was the driving point for
the prosperity of the United States, now became its demise, as overproduction and under consumption occurred. Despite Hoover's best efforts to
reinvigorate the economy, it was his actions that ultimately prolonged the depression and contributed to its extent. Ultimately it was for these reasons
that the Wall Street crash can be considered the catalyst for thegreat depression.
In 1776, The Declaration of Independence declared that the United States of America should aim to enable 'life, liberty and the pursuit of happiness'.
The 1920s, or the "jazz age" seemed to be the period in America's history where this aim, in an economic sense, was fulfilled. Despite beginning and
ending with recessions, the 1920s ultimately are considered a decade of unrivalled prosperity. In this decade the Gross National Product rose from
$73.3 billion in 1920, to $104.4 billion in 1929, reflecting

Herbert Clark Hoover: The Great Scrooge
It is said that some people are meant for each other, but sometimes the bad timing of things makes it wrong. This is exactly what occurred with
Herbert Hoover and the presidency. The country and even some of the world believed that Hoover was perfect for the job. But if he was such a
perfect fit, then how did he become known as The Great Scrooge? Herbert Clark Hoover was born on August 10, 1874 in West Branch Cedar
County, Iowa (Leuchtenburg 1) . He was born into a very poor family. Both his parents died making him an orphan. He was sent to live with one of
his uncle's in Oregon. Hoover grew up there but, decided to apply to a newly founded school, Stanford, in California (Leuchtenburg 5). Although he
failed the entrance exam Hoover was still... Show more content on Helpwriting.net ...
Magazines, newspaper, people all over the United States wanted Hoover to run for president. People like F.D.R and his wife, Eleanor Roosevelt,
wanted Hoover to run for president and under a democratic campaign. For a while Hoover hadn't said what party he would campaign with, but on
March 30, 1920 he announced that he was a Republican. Hoover ran in the Election of 1928. Herbert Hoover was a Republican and ran against Alfred
E. Smith a Democrat (Foner 636). Hoover won by a landslide and became President of the United States in

The Real Causes of the Depression
Statistics show right now in the United States the unemployment rate is high. A lot of people are saying that this is bad and the economy is slowly
going downhill, but most people forget to think that these things are normal and is nothing worse than the Depression of the 1930s. Although some
people say that the Depression was caused by the Smoot–Hawley Tariff Act, it was strictly due to many reasons that were unrelated to the Act. The
Smoot–Hawley Tariff Act was signed by President Herbert Hoover on June 17, 1930. It had been proposed in 1929 and was passed in June of 1930 by
Congress (Burg 63). Two men by the name Reed Smoot and Willis C. Hawley, who were republicans, sponsored this Act, but 46 states did not see the
significance or how... Show more content on Helpwriting.net ...
This is usually said to have been a result of Smoot–Hawley, although when looking further this statement could not have been more wrong. For the
economy to be stable there needs to be equilibrium, which is a stable balance between spending and other factors within the government. Stein suggest
that this is usually based upon "...spending by households on consumption goods [S], spending by households and firms on investment goods–––such
as houses, machinery and equipment (I), spending by the government on goods and services (G), and net exports, which are the difference between
spending on exports by foreign households and firms (EX) and spending on imports by domestic households and firms (IM)..at equilibrium[(Y) the
equation is], Y=S+I+G+(EX–IM)"(O'Brien). During the Depression the two categories that were lacking were the food or consumption and
investment spending. This caused a huge drop in employment (O'Brien). When people stop buying food as often for their family and themselves to
eat, there are less people need to keep up with the once busier stores. Therefore, a drop in jobs occurs, and the same happens when people stop
investing in things because of the lesser amount of money. In 1933, the unemployment rate was at its highest, 24.9 percent (Numbers). A way to see
that Smoot–Hawley did not affect this is to compare the early 1930s with the mid–1930s. Later, during the mid–1930s there was a recession

The Roaring Twenties In The United States : The Causes Of...
The Roaring Twenties was a time of prosperity in the United States. Rural Americans migrated to the cities with the hope of finding a more lucrative
life. While the American cities prospered, the overproduction of agricultural crops created extensive financial disheartenment among American farmers.
The American economy showed threatening signs of unrest. For example, steel production declined, automobile sales diminished, and consumers were
increasing their debts because of buying on margin. Despite all of these negative impacts, the stock market continued to rise until the economy had
reached the boom phase. This is when there is zero unemployment, full production, and prices increase. Since the boom phase is the highest point of the
business cycle, in order to make a stable economy, there has to be a decline or depression (DOC A). In the 1930s, the United States suffered from the
greatest economic depression in its history. Millions of people, men and women, were out of work or afraid they soon would be. This rapid change is
known as The Great Depression. Financial irresponsibility led to the greatly unequal distribution of wealth, buying on credit, and the United States tariff
system, each contributors to what is known as The Great Depression.
One cause of the Great Depression was the unequal distribution of wealth throughout the 1920s. The uneven distribution of wealth existed on many
levels. Money was distributed unevenly among the the rich and poor. Labor Unions

Langston Hughes Influence African Americans In The 1920's
Langston Hughes moves to Harlem (1921) The 1920's is known as the pop culture era that lead to changes within America's popular culture caused by
the growth of new ideas. Many artists, writers and musicians thrived during this era. For example Langston Hughes, a reputable poet from the 1920's
that described not only the hardships of African Americans during this time but also the inequality that divided blacks from whites in the 1900's.
Langston Hughes contributed to Harlem Renaissance which gave a voice to those who have experience in songs, writing, and plays within the African
American community. The Harlem Renaissance was an artistic movement that promoted a new African American cultural identity in which political,
social, and cultural aspects advanced in the city of Harlem.
Ford produces over 1 million model–T cars (1922) Henry Ford was one of the top most important American businessman who was responsible for the
mass production of automobiles in the 1920's. Automobiles in the 1920's became a major component to the economy by adjusting American society
during this time. For example, changing the way American's lived. By producing affordable automobiles, model–T cars, more people were able to
move out of overpopulated cities into more rural areas without being isolated and still be able to arrive at work for a ... Show more content on
Helpwriting.net ...
These acts of terrorism included lynching, bombing, rape, skinning and so forth. In the 1920's the organization met a number of members around 4.5
million. The Ku Klux Klan had only white male citizens in this organization who believed in goals of "setting blacks in their place" and wanted to get
rid of/ keep out foreign–born people or in other words immigrants out of the US. Many members in the Klan were paid to round up new members into
a world full of racial violence and

Great Depression Relief
The Great Depression and the Progress to Relief The Great Depression has been marked as one of the darkest periods faced by the world after the
Total War, WWI. Many in the U.S. can recall the good times felt in the 1920's. Money could be made and credit was the norm, much the same, seen
today. The despair that rolled on the world in 1929, when the stock market crashed brought much devastation not just to Americans, but the world. It is
not that the struggle was necessary forgotten, just push to the back of minds as something that will never happen again. The democratic America first
did as a democracy is expected to do, under the Hoover administration "stay far removed from the lives of its citizens," (George, 2011) was American
democracy... Show more content on Helpwriting.net ...
Many citizens protest this action since most of the meat went to waste
The Civil Works Administration is established" (American Experience: TV's most–watched history series, 2013)
1935
"Father Charles E. Coughlin establishes the Union for Social Justice.
FDR signs legislation creating the Works Progress Administration. (Its name would be changed in 1939 to the Work Projects Administration)
The National Youth Administration is set up to address the needs of young men and women (who are not allowed in the CCC)." (American
Experience: TV's most–watched history series, 2013)
1936
"Photographer Dorothea Lange visits a pea–pickers' camp in California's San Joaquin Valley and takes photographs of harvest workers.
1937
United Automobile Workers strike at the General Motors Plant in Flint, Michigan
Roosevelt recession ensues" (American Experience: TV's most–watched history series, 2013)

How Did The Great Depression Affect America's Economy
An economic upheaval, a change of life, a mark in the history books– the Great Depression not only affected America's economy but also showed the
world how truly interconnected all nations' economies are. The luxurious lives of the Roaring Twenties were turned upside down by the Great
Depression. The origins of the Great Depression stem from the American economic policy with Europe, the bank failures, and the stock market crash of
1929.
In 1930, economic measures were made between the U.S. and other countries regarding imports and exports. The Smoot–Hawley Tariff Act was
intended to protect American farmers against international imports of produce ("Smoot"). However, the result of this tariff resulted in an
overproduction of produce ("Smoot").

President Hoover Dbq
Thesis Question: President Herbert Hoover is often undermined and overlooked as an idle predecessor in comparison to the renowned Franklin
Delano Roosevelt. Many people believe that it was Hoover's lack of action that brought America to its knees before the Great Depression. Should
Herbert Hoover be defined as the ineffective president accountable for the aftermath of the Stock Market Crash of 1929 or did he actually play an
important role in alleviating the economic turmoil, but simply went unrecognized for his heroic contributions?
Although he is known to be an excellent businessman, the prevention of the Stock Market Crash of 1929 was an impossible feat for even someone as
educated as President Herbert Hoover. All throughout the prior ... Show more content on Helpwriting.net ...
The ability to harvest product evolved into a comparatively swift task and the sheer supply of food was on the rise. However, this seemingly joyful
moment soon went sour when supply became limited by lack of demand. As a result, crop prices fell and unemployment was on the rise. Upon stepping
into office on March 4, 1929, Hoover noticed this decline and immediately began drafting proposals to counteract the effects of agricultural recession.
Three months later, he succeeded in passing the Agricultural Marketing Act. In such little time, he had already put forth a resolution by providing
farmers financial insurance, which helped sooth the economic unrest. President Herbert Hoover's Agricultural Marketing Act was an excellent first
impression in exhibiting his proactivity and his endeavor to prevent the market crash.
After the crash, Hoover continued to demonstrate his tireless humanitarian character when he agreed to sign off on the Smoot–Hawley Tariff Act the
following year. He understood that with the economy obliterated, public grievance levels were on a steep rise. Hoover wanted to continue protecting
the people, as well as the U.S. agricultural interests, so he decided to draft a bill that would increase thousands of import tariffs. The goal was to
encourage international trade and the purchase of goods produced by the United States. With even higher import tariffs and a high international
demand for domestic products, perhaps America could be saved. At the time,

Smoot Hawley Tariff Essay
Smoot Hawley Tariff: A Destructive Contribution
Farmers all through the 1920s had experienced "intense competition and declining prices because of overproduction [;] U.S. agricultural interests
lobbied the federal government for protection against agricultural imports" (Britannica 2015). Herbert Hoover had sided with the farmers in raising
Agricultural tariffs that eventually led to his presidency and signing of the act. This Smoot Hawley Tariff as it was called would "increase the cost of
imported goods so that U.S. consumers would spend their money on U.S. products" in turn would save U.S. jobs in "import competing industries"
(Suranovic 2012). The act went through various revisions leading up to the presidents signing that rose tariffs for ... Show more content on
Helpwriting.net ...
The tariff indeed contributed to the Great Depression by destroying international that made economic growth here and in many countries impossible.
As foreign nations retaliated against the tariff, U.S. exports and imports were set to a declining rate. Countless sectors of the economy were hurt, as we
were not selling enough goods in the world market leading many industries like agriculture to collapse. With the collapse of industries came
unemployment leaving many families to struggle to get through day–to–day life. Many of the Americans lost their money due to bank failures
happening one after the other. Today we try to practice a more safe approach on trade, which is free trade. The tariff was an act of Protectionism and
it failed to protect what it was meant to protect, hurting farmers and eventually spreading across the U.S. The Smoot Hawley tariff may have not been
necessary but in all it was timing that had lead this act to prolong the Great

The Smoot-Hawley Tariff Act Of 1930
The Great Crash "[It] marked a fundamental break in U.S. history, a drastic change in basic attitudes and institutions that define the roles of citizen
and state" (Reynolds 1416). On October 29, 1929, the U.S. Stock Market crashed, or the "the value of stock fell quickly" (Arnesen 36). This occurred
after years of massive speculation, which was the purchase of high–risk stocks for a high return. In all actuality, the downward spiral began on October
18, when stocks first declined. The destabilization of the market convinced stockholders to begin pulling out their funds; they also traded stock for a
lower amount in value, so shareholders lost the full value of their investments. This "panic" came to fruition on October 24, Black Thursday;... Show
more content on Helpwriting.net ...
According to Alan Reynolds, government policy could be the only possible cause to destabilize the economy. This can be seen in the Smoot– Hawley
Tariff Act of 1930; the five point plan summarily stated the following: raise the cost of living, stop all help to the farm sector, urge foreign countries
to pay higher trade tariffs, and hinder foreign debtors from paying U.S. foreign investors (Phalan). On another note, the stocks collapsed on October
28, 1929, or Black Thursday, when multiple members of the senate switched to the approving side of a calcium carbide tariff. Then, another tariff was
forced upon Hoover, and the next day was Black Tuesday. Finally, on November 14, the senate postponed action on the Smoot
–Hawley Tariff, which
caused a rise in stocks. Yet, the stocks downturned in anticipation of Hoover's veto on the act even though he ratified it. To clarify, each passing of
tariffs caused a downward force on stock value (Reynolds). Moreover, overspeculation, purchasing high–risk stock, flourished as interest rates were
artificially lowered (Etheredge). As aforementioned, this caused a false sense of security within the market. The market's peak in August of 1929
caused by this over speculation ended in October, and the massive loss of monetary value wiped out bank deposits ("Stock Market Crash of 1929"). In
expansion, banks had utilized deposits to invest in the market and create interest, yet the money was not secured by an agency such as the FDIC, or
Federal Deposit Insurance Company. Therefore, bank runs occurred as citizens rushed to withdraw from their accounts. The cause of such an event
spurred the ratification of the Glass–Steagall Act, or Banking Act of 1933, which created the FDIC (Pusey 1). In all, over speculation caused economic
chaos, and actions on the Smoot–Hawley Tariff caused a downturn in stock.

How Did Hoover Prevent The Great Depression?
When the Great Depression started in October of 1929 Hoover wasn't entirely in charge. The economy was going down south. Hoover's reaction at first
wasn't much, but when things started to get worse as he took immediate measures.
In 1932 President Hoover got elected. He thought that the Great Depression was only a temporary situation and that the economy would come back to
its original good terms on its own. Unfortunately, this did not occur. The laissez faire, in which the government does not get involved, was not helping
the economy get any better.
Hoover, then introduces the Hawley Smoot Tariff Act. This act implied that the wages would increase, but the taxes would also stay high. This did not
result in a positive way. Businesses closed

China's Contributions To America
China, the second leading exporter in the world, is known for their immense role in the United States economy. Without China's contribution to the U.S.
economy, the United States would suffers tremendously. This is the same case for China, the contributions from foreign companies is a big reasons for
China's success. The relationship between these two superpowers were not always very strong. For years the United States trade system was not a very
compelling situation for other countries to do trade. As the United States evolved into the superpower country they faced a lot of complications. For the
United States of America to remain one of the world's most powerful countries a strong relationship with China is a necessity. The continuation of...
Show more content on Helpwriting.net ...
The united states has numerous amounts of factories in china for the production of goods at the cheapest price possible. With Americans relying on
the basic price of an item, say the price of an iPhone, without manufacturing this in china at the lowest wage several americans would simply not be
able to buy these luxury items. This is the case for not just luxury items but for all items like plastic silverware, furniture, backpacks and many other
items. If the United States were limit the amount of imports from china the entire economy would change. Not just because of the increase in prices
but small businesses would be affected as well. For example say a small self owned restaurant budgets themselves on how much the plates, silverware,
and napkins cost. Without imports from China these prices would jump immensely resulting in the owner to either increase the price of the product or
they will begin to lose

How Did President Hoover Affect The Economy
Herbert Hoover the son of a Quaker turned successful business person won the presidential election in November 1928, as representative to the
republican party and truly a far–right wing conservative. Upon taking office President Hoover did not foresee the road of darkness ahead, and on
October 29, 1929 the darkest road ever came to light. Labeled as Black Tuesday, the United States stock market crashed sending the country into a state
of panic. In 1927, stock prices soared creating outrageous speculation of continued progressive growth. With extreme tax reductions, many American's
invested more heavily into the stock market, even in a weakening economy a recession did not seem on the brink. Amid harsh times with the stock
market crashing, unemployment... Show more content on Helpwriting.net ...
Millions of Americans lost their jobs, homes, and savings in just a short matter of time, and by the same token executives began taking extreme
measures in preventing the inevitable from occurring with having to close its doors. President Hoover met with several top business owners such as
Henry Ford, Alfred Sloan, and Pierre Dupont all from different business sectors in an attempt unfettered competition. President Hoover believed that
unfettered competition would create lower prices which in turn would lead to lower wages. Despite a weakening economy President Hoover
instructed companies to keep wage rates at current level and stop layoffs with work sharing by dividing work shifts among employees. In return he
would convince workers not to strike or ask for extra pay and benefits. Unfortunately, prices for industrial goods declined due in part to the economy
wide deflation brought on by the federal reserve tight money policy. This would lead to companies backing out its earlier deal with President Hoover
and begin to laying off drastically. When the Great Depression first hit unemployment was at 3.2% and climbed to 23.6% by 1932 under Hoover's
administration. Furthermore, President Hoover thought to tax the top income bracket at a much higher rate between 25% as high as 63% during his
attempt to engineer the economy back to

What Was Hoover's Role In The Great Depression
According to Hofstadter, Hoover held a philosophy that made him unaware of overproduction, while Dr, Kennedy argues that Hoover was an artless
politician who failed to solve the economic issues of the nation, further worsening the crisis. Hoover was generally good president and leader. When he
entered office, he looked to implement new national policies that would further develop the nation. However, his first actions to help struggling
farmers and wage earners ultimately failed. Hoover passed the Agricultural Marketing Act in 1929, creating the Federal Farm Board that would buy
agricultural surpluses to decrease prices. Farmers ended up overproducing, and could not make up the money with the Board's purchases. The
Hawley–Smoot Tariff was

Arguements Over the Causes of the Great Depression
New Dealers argued that the Depression was a crisis of "under–consumption." They contend that low wages and high prices due to the uneven
distribution of wealth had made the idea of purchasing products in this industrial economy out of the question; and that a "lack of demand had led to
the economic collapse (Glenco)," especially after the poor were hammered by the effects of the stock market crash. Furthermore, placing sole
responsibility of the depression on the unbalanced distribution of wealth is unreliable in the sense that a domestic solution was unavoidable in the
minds of New Dealers, whom acquired a predisposition to place limits on corporate leaders, which distracted them from recognizing the full effect of
other obstacles during the Depression.
With the decline in purchasing power already intact, the drastic contraction in currency added insult to injury. This monetary interpretation concluded
that the Great Depression was a byproduct of "mistaken decisions by the Federal Reserve Board," which "raised interest rates when it should have
lowered them (Glenco)." These measures insured that a rather generic recession would climax into the Great Depression known today. However, the
validity of this argument can be questioned because of Friedman's disposition to see things through a monetary lens: allowing Freidman to advocate his
position "that sound monetary policy is the best way to solve economic problems (Glenco)," and ignore the drop in consumer spending and

How Did Hoover Respond To The Great Depression?
Herbert Hoover was elected president of the United States on November 19, 1928; unfortunately, less than eight months later, the stock market crashed.
Hoover mistakenly considered this crash as only a passing point for America. But it was only three years later when economic slowdown and over
speculation brought America into an upcoming Great Depression. This was a devastating blow for Hoover, his administration, and the American people.
President Hoover attempted many ways to fix the economy. He founded new government agencies and encouraged cooperation between government
and business to try to stabilize prices as well as attempt to balance the budget. These relief attempts might have shown positive outcome in the early
years of the depression, but as the economy worsened, calls for more government involvement increased. President Hoover believed that too much
intervention by the government would destroy American individuality and self–reliance, which he thought were ... Show more content on
Helpwriting.net ...
This committee unfortunately soon proved ineffective. In attempt to calm down international tensions and appease the global depression, Hoover
issued the Hoover Moratorium in 1931. The Moratorium called for a one–year halt in allied war payments, debts, as well as reparations made by
Germany to France. France strongly disliked this plan since it had significant losses to Germany in World War 1. The Moratorium had little effect
overall and never helped establish any permanent solutions. Trying to aid the economy, Hoover urged the major banks of the country to merge in
order to form what is known as the National Credit Corporation (NCC) in 1931. The purpose of this merger was to loan funds to the smaller banks in
order to keep them from shutting down. Hoovers plan once again failed. The NCC was not able to fix the

The Cause and Effects of the Great Depression Essay
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 first and most obvious known factor in the development of The Great Depression is the stock market crash of 1929. The Money Alert
website ... Show more content on Helpwriting.net ...
The banking industry as a whole after the stock market crashed was going bankrupt due to not being able to carry the "bad debt" that was created
from using customer money to buy stock. Because the banks were out of money, they were unable to cover customer withdrawals from their bank,
causing many bank customers to lose all of their savings. With the uncertainty of the future of the banking industry, many people withdrew all of their
savings, which caused more than 9,000 banks to close their doors and go out of business (Kelly). Due to the effects of the Great Depression, and the
collapse of the banking industry, the government created regulations to prevent similar failure in the future. For Example, the SEC, (or Securities
Exchange Commission), which regulates the sell and trade of stocks, bonds and other investments was created as a result of The Great Depression.
The FDIC (or Federal Deposit Insurance Corporation), was created to insure bank accounts so that that the consumer would be protected if the bank
were to go out of business (Kelly). The Great Depression's effect on the banking industry led to many useful changes to the banking industry and helped
restore confidence in banks in the American people. The next major factor that contributed to the Great Depression was the reduction of goods being
purchased during the time period. After the stock market crashed, consumers from

International Economic Policy in Times of Crisis Essay
Governments face all kinds of crises every day, the approaches may be different but the goal is always the same–maintain stability. While, wars and
crimes against humanity tend to take a toll on the population, infrastructure and terrain quite literally, financial crises can psychologically cripple a
country. There's something about a financial crisis that conjures a level of panic that could rival the outbreak of a deadly disease. Maybe this is
caused by a lack of visible end, as it seems the light at the end of the tunnel is only made clear at the end of the crisis. Even with examples from
history to refer to, each financial crisis seems to take on a version all its own like a new strain of a deadly virus. The government tries to... Show more
content on Helpwriting.net ...
The Austrian School, support free market but believe there are too many variables and the shifts in equilibrium occur too quickly to rely on models
instead use logical deduction based on fundamental axioms (). Monetarists believe that the emphasis should be on the role of governments in
controlling the money supply (). Keynesian economics and its modern variations remains a common school of thought in the U.S. that focuses on
analyzing macroeconomic elements in the short term using models (). The protectionist inclined schools, like the American School and at times the
Austrian School, prefer to use import tariffs and/or industry subsidies to calm the economy (). While, believers in free trade, like the Keynesian School
and Monetarists, are partial to adjusting interest rates and fiscal stimulus in order to restore the economy.
The Great Depression of the 1930s is often used today as a point of reference to learn from failed protectionist policies. Black Tuesday, October 29,
1929 marks the horrifying beginning to the Great Depression with the most devastating collapse in the stock market until the recent crisis. The U.S.
government passed the Smoot–Hawley Tariff Act of 1930 in reaction to the financial crisis. The act raised tariffs on over 20,000 imported goods to the
second highest levels in American

1930's Dbq
Towards the end of the 1920's the economy in America took a drastic turn. This was when Calvin Coolidge's presidency had ended and changes in the
government began to take place. "Just seven months after Herbert Hoover entered the White House, economic trouble mocked his campaign statement
about being near 'the final triumph over poverty.' On October 24, 1929 panic swept the New York Stock Exchange as nearly 13 million shares
changed hands" (Hamilton). The start to Hoover's presidency was also the start of the Great Depression. His term consisted heavily on working on
taking steps to bring America out of the drastic economic fall that they had just entered. He began taking action by launching public works programs,
tax reductions, and the formation

How Did The Great Depression Affect Canada
The great depression had a major impact on a large number of people in Canada, and it also affected Canada itself. In this essay, I will talk about the
economic hardships suffered by Canada and Canadians during the great depression (1929–1939). Also, I will talk about the ways the Canadian
Government sought to help Canadians during the Depression. Next, I will talk about if they were successful in doing so. Finally, I will talk about why
they were not successful.
The economic hardships suffered by Canada were very drastic. The great depression largely affected the Canadian economies.There was a widespread
drop in world commodity prices. The Prices dropped because of the Smoot–Hawley Tariff signed by U.S President to raise all duties and tariffs on
items entering the U.S. Which Meant that less items were being shipped out and businesses were losing money. For example, by 1932 Canada's per
capita gross domestic product fell 34.8 percent. To be more specific; the price of lumber dropped 32 percent from 1929 up until 1932. That is 10.6
percent per year. Moreover, With the result of the Smoot–hawley tariff act it did affect a large number of farmers in the West.... Show more content on
Helpwriting.net ...
A major problem that affected Canadians was the 1929 Stock Market Crash; which resulted in unemployment to raise very high very quickly.
Therefore, Canadians not having Jobs resulted in Businesses losing money because not as many people had money to spend on products to buy for
their homes. Furthermore, another economic hardship they suffered was the province income dropping by 90% in just 2 years; that forced 66% of the
rural population on to relief. Moreover, the economic hardships that Canadians continued to suffer through were: Bread Lines, Soup Kitchens, Living
off government granted funds. Therefore there were a lot of economic hardships that canadians suffered and changed the way we live our lives

What Was The Role Of Foreign Policy Leaders In The 1930's
"Leave us out of it", Seemed to be America attitude towards the rest of the world in 1930's. At the beginning of the '30's, foreign policy was not a
important issue for the average American. The stock market had just crashed and each month brought greater hardships. American participation with
Europe had brought war in 1917 and unpaid debt throughout the 1920s. Having grown weary with the course of world events, citizens were
convinced the most important issues to be tackled was domestic. Foreign policy leaders of the 1930's once again led the country down its
well–traveled path of isolationism. The Hoover Administration set the tone for an isolationist foreign policy with the Hawley–Smoot Tariff. The
Hoover Administration set the tone for

Hoover's Economic Policies
Franklin, a democrat, who served four terms and became the longest serving president of U.S. from March 1933 to his death in April 1945.Also, he
was an American statesman and political leader who served as the 32nd President of United States. He brought the New Deals to Americans to help
people during the Great Depression. The First 100 Days, rebuild public trust in the American financial system by the Emergency Banking Act which
attempted to stabilize the banking system and the Federal Deposit Insurance Commission that helped to protect individual who deposit money in the
bank to fix immediate problems. Roosevelt used "fireside chats" on the radio to explain and convince Americans to deposit their money into banks.
Beside, he brought the... Show more content on Helpwriting.net ...
Roosevelt also was a very great person who had awesome personalities. His personalities helped Americans in the Great Depression. His policies were
practical because he was a practical person. Moreover, he was also very smart since he created many policies such as CCC, AAA, WPA, and so forth.
He broke a lot of odd stuff and produced many new ideas to aid America. He was positive due to the fact that he did not give up in the Great
Depression. He tried lots of ways to solve the problem, so he was a very important leader in America's

The Great Depression And Economic Depression
The Great Depression was a worldwide economic depression that took place during the 1930s. The timing of the Great Depression varied across
nations; in most countries it started in 1929 and lasted until the late 1930s. It was the longest, deepest, and most widespread depression of the 20th
century. In the 21st century, theGreat Depression is used as an example of how far the world 's economy can decline.
The depression originated in the United States, after a fall in stock prices that began around September 4, 1929, and became worldwide news with the
stock market crash of October 29, 1929 . Between 1929 and 1932, worldwide GDP fell by an estimated 15%. By comparison, worldwide GDP fell by
less than 1% from 2008 to 2009 during the Recession. Some economies started to recover by the mid–1930s. However, in many countries, the negative
effects of the Great Depression lasted until the beginning of World War II.
The Great Depression had devastating effects in countries both rich and poor. Personal income, tax revenue, profits and prices dropped, while trade
plunged by more than 50%. Unemployment in the U.S. rose to 25% and in some countries rose as high as 33%.
Cities all around the world were hit hard, especially those dependent on industry. Construction was halted in many countries. Farming communities and
rural areas suffered as crop prices fell by approximately 60%. Facing plummeting demand with few sources of jobs, areas dependent on primary sector
industries such as

Economic Growth and Public Policy of the Uk: Does the...
Economic Growth and Public Policy of the UK: Does the protectionism help? Introduction The effects of globalization have touched all the aspects of
life and business today. One aspect is the trading policies between countries. Since the late nineteenth century, the collision started between domestic
and foreign industries, which ask governments for measures that could protect local industries, without discouraging the country's trade relations. The
term 'Protectionism' was thus introduced in the language of global trade and economy (Rowley, 2002). Protectionism is an economic policy applied in
the trading system, to restrict the quantity of imported items, and to flourish country's exports. The objective of this is policy is to... Show more content
on Helpwriting.net ...
Hence countries practicing protectionism, would suffer from fewer importers, which could eventually restrict their export options, thus reducing their
trade flow and economic growth (Ahearn, 2009) The economic dependency of the United States of America on its trade sector would be beneficial in
illustrating the relation of protectionism to the economic growth. In the USA, the trade Union believes that protectionism is the only policy, with
which the country can maintain domestic industrial growth (Trwin, 1998, 1015–1026). Being a centre for global trade, the industries of the USA have
been through a significant setback in the past few years, with a prominent increase in the unemployment rate. Moreover, the growing numbers of
import of Chinese goods, which are available at cheaper rates comparatively, have decreased the purchase of domestic goods in the USA This has
ignited the debate to, either increase tariffs on such items to protect domestic firms and industries, or to protect the needs of civilians. From the last
few years, many governments, including that of USA, U.K and several other facing the challenges of economic downturn, are looking for alternate
measures, as protectionism does not seems to provide long term solution for economic crises. As argued by Tullock (1967), protectionism causes the
rent of household to increase to a substantial amount. This becomes the reason of public stress and economic seizing for the country. Tariff added on

The Great Depression Was One Of America Crucial Time For
The Great Depression was one of America crucial time for unemployment's, banks failed, and many family suffered in this era. Great Depression
lasted 10 years from 1929 to 1939 it was the worst economic upset in the history of the industrialized world. It started off on "Black Thursday"
investor and traders sold 12.9 million of stock in one day which ended up triple the usual amount and the next couple of days' stock prices dropped 23
percent which was called the stock market crash of 1929. This began when the stock market crashed in October 1929, by this it sent Wall Street into
panic and eliminated millions of investors. As years went, many consumer's spender and investors dropped cause steep declines in the industrial and
employment as... Show more content on Helpwriting.net ...
One of the consequence of tariff was the trade between countries was less between United States and many foreign countries. Plus, the countries
retaliated economically against the United States. Another reason is the conditions the farmers and unemployed lived during the Great Depression for
example the depression cause farmers to lose their property and farms. This event happened in the Mississippi Valley in 1930 such proportions that
many couldn't pay their taxes and other debts so they had to sell their farms so for that no profit to themselves. During that time, the Midwest was
overcultivation and a dry creating the "Dust Bowl". The agriculture ended in previous fertile region and thousands of farmers and many unemployed
worker went to California to look for work in California by this many ended up homeless.
In this paragraph, Frank Roosevelt was a great influence on helping the economy for the Americans during the great depression. One of his great
influence to bring back to the confidence for people to go back to the bank was the "New Deal" which he planned to by relief, recovery and reform.
The first one hundred days the legislative passed a law which is known as "Bank Holiday" which he implied an entire week of March 1933 that all
banks transactions were to suspend in the effort to stem banks failures to

An Analysis Of Lawrence Reed 's ' Great Myths Of The Great...
Historian Research Paper: Lawrence Reed
Samuel Joyce
11 October, 2015
Period C 1–2Historian Lawrence Reed is an Austrian economist who holds a Master of Arts in history from Slippery Rock University of
Pennsylvania. He served as a professor of economics at Northwood University in Michigan from 1977 to 1984, chairing the department for his last
three years. He then moved into the world of think tanks, becoming president of the Mackinac Center for Public Policy. He stayed in that job for
twenty years before assuming the presidency of the Foundation for Economic Education. He holds honorary doctorates from Central Michigan
University and Northwood University.
Theory Reed's book, Great Myths of the Great Depression, attempts to argue that the stock market crash of 1929 was merely a normal economic
occurrence. Instead, it was government policies enacted in response that exacerbated and prolonged the economic effects of the crash. In effect, Reed's
thesis flips the conventional view on its head: instead of being the cause, free–market capitalism would have naturally solved the issues that led to the
Great Depression. Conversely, government intervention was a cause of, rather than a solution to, the economic hardships that resulted.
Summary of Evidence Reed begins his argument by discussing the conditions immediately following the crash, noting that several previous recessions
had occurred, but all lasted for four years or

Black Tuesday Dbq
Grammar Result:
Prior to The Great Depression, the United States was booming. Life was good for many. Companies were expanding nationwide, people were striking
rich, and the stock markets were rising. Soon, the United States became the country where everyone wanted to be. Many immigrants were immigrating
to the United States for opportunities. However, in 1929, the Great Depression, also known as Black Tuesday, took a heavy toll on many Americans.
Many lost hopes. "The Great Depression lasted from 1929 to 1941, and was the worst economic downturn in the history of the industrialized world."
As a result of this, the government, as well as businesses, were struggling to repair any damages or losses. This experience allowed government and
business ... Show more content on Helpwriting.net ...
"This represents "relief (for the unemployed), recovery (of the economy through federal spending and job creation), and reform (of capitalism, by
means of regulatory legislation and the creation of new social welfare programs)" Numerous laws and agencies were implemented within the first
hundred days of the act. After the New Deal was established, President Roosevelt created the Second New Deal which supports five goals. The
five goals were to enhanced national resources, gived social security and unemployment, and replaced direct relief to national work relief, and offer
programs to the poor. In addition, President Roosevelt was able to restore banking. In order for President Roosevelt's New Deal to work, he had to
change the perception of one another. His goal was to make sure the Americans as a whole grow and lift the United States out of the Great
Depression. Some of the political altered were The Agricultural Adjustment Act (AAA), The Civilian Conservation Corps (CCC), The Federal
Emergency Relief Act (FERA), The National Recovery Act (NRA), The Federal Deposit Insurance Corporation, and Securities and Exchange
Commission (FDIC). The AAA was created to cut farmers' output. The CCC was established to provide

Herbert Hoover, One of the Worst Presidents in American...
Because of the plague known as the Great Depression, Herbert Hoover is often seen as one of the worst presidents in American history. He enacted
policies such as the Hawley–Smoot Tariff that flushed America deeper into the depression. Hoover didn't understand that to solve a crisis such as a
depression, he needed to interact directly with the people by using programs such as social security and welfare. Instead, Hoover had the idea that if
he were to let the depression run its course, it would eventually end. There are three things that can be used to define Hoover's presidency during the
depression, his actions, his mentality toward fixing things, and the fact that he helped pave the way for the "New Deal" One main cause of the ... Show
more content on Helpwriting.net ...
Herbert Hoover had a belief that self–reliance and hard work in industry is what makes America great, unfortunately for Herbert Hoover, this is exactly
what got America into the Depression. When Hoover enacted Hawley–Smoot Tariff, he basically isolated the U.S. because no country wanted to pay
the high tariff rate. Since America was left alone to suffer, Hoover decided that it would benefit the people if he enacted laws like the Federal Home
Loan Bank Act. This act was meant to lower mortgage rates and help farmers refinance their farms, but since the depression was already in full
swing, it was again too little too late. Herbert Hoover at one point fully believed that if the depression was virtually left alone, it would fix itself
because of the boom and bust economy. This also didn't work, because without government help, the people didn't know what to do with themselves
and were left to suffer the depression by themselves. Hoover's attitude was changing from optimistic to desperate because nothing that he tried seemed
to work. It seems as though Hoover was afraid of what he had done to America when a group of World War I veterans, known as the Bonus Army, came
marching in Washington looking for the bonuses they were promised. The bonus wasn't due until the 1940's, but with the uncertainty of the economy,
they wanted to get what they could, while

The Great Depression Of 1929
The Great Depression of 1929 was a deadly blow to the economy. This occurs when the United State won the World War I. After the war people
who worked in the factories making weapons lost their job. People who came back from the war did not when back to work they were proud of
themselves having fun time buying stocks. Then the disaster happened, on October 29 the Black Tuesday the stock market crashes, the stock
drop the banker who bought the stock invest more money into the stock hope the stock is going to rise, but it did not seen to work out the stock
were still decreasing and people were unable to sell out their stocks. Which cause the Bank Failure, people want to take their saving out from the
banks, but the banks were unable to give back their money about 9,000 banks failed in the 1930s(Martin 1). The unemployment rate keeps rising,
people who did not have a job were worried about their saving, afraid to waste their money on goods become very careful on the use of money on
goods. This cause the Reduction in Purchasing some business failed. The disaster did not end the natural disaster the Dust Blow occur on April 14,
1935. There were about 38 storms by 1934 millions of farmers lost their farmland and houses have to leave their homeland became homeless. On
March4,1933. When Franklin D. Roosevelt became the president of the United States he release the New Deal combine over ten Acts. The most
significant of the New Deal was the Banking Act of 1933 "prohibited bank

Isolationism And The Great Depression And World War II
During the 1920s, the United States was believed to have followed a foreign policy of isolationism that led to the Great Depression and World War II.
However, this is a historical misconception known as the myth of isolationism because the U.S. followed a foreign policy in the 1920s called
independent internationalism, which was a new idea to promote economic diplomacy through peaceful relations and non–military intervention. In
Jeremi Suri's Opt–Ed article, Trump is repeating the isolationism that led to the Great Depression and WWII, he argues that Donald Trump is following
similar foreign policies of isolationism such as the increase on tariffs, restriction on immigration, and the dismembering of alliances, that mirror what
occurred in ... Show more content on Helpwriting.net ...
Howard Jones who is the author of, Crucible of Power, argues that the U.S. followed a foreign policy of independent internationalism to secure foreign
markets through peaceful means and this can be seen in Latin America. Woodrow Wilson promised not to seek territorial acquisitions to the South, but
would not renounce the spread of U.S. influence through economic means and this lead to the U.S. having influence in 75 percent of Latin American
during the 1920s. To spread economic influence throughout Latin America the U.S. insisted it would be through peaceful policies, but continued the
use of military interventionism in countries like the Dominican Republic, Haiti, and Nicaragua until the middle of the 1920 's. This is also an example
which shows that the U.S. did not pursue an isolationist foreign policy and wanted to go out in the world and expand its markets. Suri also compares
how Donald Trump wants to replace NAFTA and impose high tariffs to the Smoot–Hawley Tariff Act from 1930, which seeks to prove that the U.S.
acted with an isolationist foreign policy to protect its home markets. However, William Appleman offers an amazing argument as to how President
Hoover was a smart business man that pushed for the Open Doors policy to try and solve the problem of

Hoover's Dbq
PRESIDENT HERBERT HOOVER had the distinction of stepping into the White House at the height of one of the longest periods of growth in
American history. Less than seven months after his inauguration, the worst depression in American history began. Undoubtedly, the fault of the Great
Depression was not Hoover's. But as the years of his Presidency passed and the country slipped deeper and deeper into its quagmire, he would receive
great blame. Urban shantytowns were dubbed HOOVERVILLES. Newspapers used by the destitute as bundling for warmth became known as Hoover
blankets. Pockets turned inside out were called Hoover flags. Somebody had to be blamed, and many Americans blamed their President. Running for
President under the slogan "RUGGED INDIVIDUALISM" made it difficult for Hoover to promote massive government intervention in the economy. In
1930, succumbing to pressure from American industrialists, Hoover signed the HAWLEY–SMOOT TARIFF which was... Show more content on
Helpwriting.net ...
The Hawley–Smoot Tariff proved to be a disaster. Believing in a balanced budget, Hoover's 1931 economic plan cut federal spending and increased
taxes, both of which inhibited individual efforts to spur the economy. Finally in 1932 Hoover signed legislation creating the Reconstruction Finance
Corporation. This act allocated a half billion dollars for loans to banks, corporations, and state governments. Public works projects such as the
GOLDEN GATE BRIDGE and the Los Angeles Aqueduct were built as a result of this plan. Hoover and the RFC stopped short of meeting one
demand of the American masses – federal aid to individuals. Hoover believed that government aid would stifle initiative and create dependency where
individual effort was needed. Past governments never resorted to such schemes and the economy managed to rebound. Clearly Hoover and his
advisors failed to grasp the scope of the Great

U.s. Trade Policy Policies
U.S. Trade Policy Throughout history, the United States' trading policies have shifted from early protectionism intended to generate revenue and
support domestic industry growth to a high degree of free trade within the international trade market (Carbaugh, 2015). In between, policy changes
designed to increase and decrease tariffs were enacted due to pressure from politicians, economists, industries, citizens and other countries. Yet,
emphasized in the ensuing paragraphs, America's continuous efforts to maintain a sufficient amount of trade tariffs has continuously led to fluctuations
in the domestic economy. Along with the country's practice of protectionism, the policies that influenced the major changes intariff rates include the ...
Show more content on Helpwriting.net ...
As the initial tariffs laws prospered enough to yield over 90 percent of the federal government's total revenue, pressures from developing industry
leaders urging for a higher degree of protection needed to combat growing foreign competition overwhelmed the governments revenue motives
(Carbaugh, 2015). Highlighted by Alexander Hamilton's propositions to the federal government in 1791, actions in the form of higher import tariffs
and government subsidies were essential to the promotion of manufacturing within the United States (Irwin, 1996). Consequently, these views fueled a
growing debate and struggle between the North's industry led economy who favored higher duties on imports and the South's import dependent
economy, which relied on lower costs (Carbaugh, 2015). With the government's passing of the Tariff of Abominations in 1828, their intentions of
promoting the purchase of domestic goods by increasing the price of cheaper foreign products, mostly from English exporters, enraged the Southern
economy due to the record setting tariff duties that were the highest in the world (Wilson, 2009). Additionally, the Southern states desired lower tariffs
in order encourage the trade of cotton and tobacco, which were supplied by Southern farmers and plantation owners (Wilson, 2009).
Although the Tariff of

Early 1930s Research Paper
The early 1930s was a disintegrating period accompanied by massive trade and capital collapse. Total world trade in 1933 was only one–third of the
1929 level. The two major reasons causing this dramatic decline are the falling demand and increasing trade barriers. These two factors reinforced with
each other thus made the situation hard to recover.
Looking first at the falling demand, although the Great Depression was the dominant reason leading to less consumption, monetary tightness in 1928
due to Fed's antispeculative policies has already caused a downturn in real activity. Construction, as a component of investment, and automobiles, as a
component of consumption, were influenced the most due to this rise in interest rates. (Field, 1984, ... Show more content on Helpwriting.net ...
The main reasons towards this are the improved policy responses learnt from the 1930s experience. In 1930s, countries used gold standard to
maintain fixed exchange rate and free capital flows which sacrifice independent monetary policy. Therefore, when the crisis arrived, countries could
not lower the interest rates to boost the economy unless they left the gold standard. Evidence shows countries left the gold earlier had a quicker
recovery while others stayed on gold experienced further deflation. (Bernanke, 1995, Pg4) In contrary, most counties use floating exchange rate
nowadays which means they can use expansionary monetary policies immediately when facing economic shock. In 2008, the Fed aggressively
lowered interest rates and used quantitative easing when the economy was at the zero lower bound which hugely raised money supply to prevent
deflation. (Crafts and Fearon, 2010, Pg288) The major difference between 1930 depression and 2008 recession is the use of fiscal policy. No
countries used fiscal policy for recovery before 1942 (Almunia et al., 2010, Pg234), expect Germany, who boosted economy through fiscal expansion
and rearmament. Therefore, there is debate about the effectiveness of fiscal policy, hence the size of the multiplier. However,

Dust Bowl Dbq
World War 1, the first global conflict of the world (lasting 4 years), came to an end. The war itself has claimed the lives of 9 million to 13 million
men and has caused an unbelievable amount of damage to all countries. Germany surrendered, and all other nations agreed to end the war while the
terms of peace were being negotiated. President Wilson set fourth his plan for "just peace" following his fourteen–point outline which vison a safer
world. Although President Wilson wanted peace, the nation leaders ignored his proposal–Europe especially. They wanted retribution. Germany was to
admit guilt and were liable to pay any financial reparations to the Allies. Thus, all nations including Germany, signed theTreaty of Versailles.
Life after the ... Show more content on Helpwriting.net ...
Between 1939 and 1941, due to the Japanese attacking Pearl Harbor, the United States manufacturing went up 50 percent. Even though the New Deal
did not uplift the U.S's economical issues from the Great Depression, the mobilization for World War 2 revived the economy during the late 1930's to
1940's.
Primary Sources:
Books, Meredith, and Kevin Markey. 100 Most Important Women of the 20th Century. Des Moines, IA: Ladies Home Journal, 1998.
Caver, Charles B. Can Unions Survive? The Rejuvenation of American Labor Movement. New York: NYU Press, 1995.
Roosevelt, Franklin D. Inaugural Address. Washington DC, 1933
Elliot, George P. Dorothea Lange. New York: The Museum of Modern Art, 1966.
Secondary Sources:
Kennedy, David M. "What the New Deal Did." Political Science Quarterly 124, no. 2 (June 2009): 251–68. Jstor. http://www.jstor.org/stable/25655654.
Gordon, Linda. "Dorothea Lange's Oregon Photography: Assumptions Challenged." Oregon Historical Quarterly 110, no.4 (2009): 570–97. http:/
/www.jstor.org/stable/20616013
Koyama, Kumiko. "The Passage of the Smoot–Hawley Tariff Act: Why Did the President Sign the Bill?" Journal of Policy History 21, no. 2 (2009):
163–86. Project Muse. Accessed March 26, 2018.

How Isolationism Is A Part Of American Policy
Isolationism was a part of American policy beginning when George Washington made his Farewell Address in 1796 and lasting to the end of World
War II. Factors like thousands of miles of sea between the US and Europe, fear of entangling alliances and a desire to remain autonomous contributed to
the overall isolationist sentiment of many Americans. In addition, nativist sentiment has been present throughout American history as a product of
isolationism and, among other factors, wage depression and fear of criminal behavior. During World War I, European countries were not only fighting
with each other, but many new revolutionary ideas were sweeping the eastern portion of the continent. In 1917, Vladimir Lenin orchestrated the
Bolshevik Revolution and founded a new government based on the principles of Karl Marx's Communist Manifesto. For many Americans, this was
terrifying because communism is an expansionist ideology and not only was it spreading to Eastern European countries, but it had the potential to take
root in America through Eastern European immigrants. As a result, the Red Scare swept through America due to communism being seen as a threat to
democracy, causing a massive spike in nativist sentiment during the 1920's and 1930's. Isolationist sentiment did not apply to international trade in the
1900's and America was becoming an increasingly powerful international economic power. Before World War I, foreign investors invested nearly three
hundred billion dollars more

Economic Effects Of The Great Depression
Economic Fallout
On October 29, 1929, Black Tuesday, the United States of America's stock market crashed causing the Great Depression. The Great Depression of the
1930's greatly impacted millions of people's lives around the world. The Depression caused millions of people to lose their homes, jobs and food for
their families. The events causing, during, and after the Great Depression will forever be an important part of American History that will never be
forgotten.
The events that leading up to and caused the Depression date all the way back to World War I. After a small economic downfall after the First World
War, the economy began to boom in 1924 . TheUnited States' economy boomed until 1929 and was at an all–time high in 1928 due to the lowering of
taxes . One of the many reasons that caused the Great Depression was an overproduction of goods. During World War, the consumption of goods was
unbelievably high. When the war ended the United States did not slow down on production and eventually had too much product for the demand.
With the numbers of products being sold, no one needed to buy anything because they had already stocked up on everything needed. A Second reason
for the Great Depression was the lack of foreign trade around the world. In 1930, President Herbert Hoover passed the Smoot– Hawley Tariff Act . The
Act increased Tariffs to such a high rate, that no countries would trade with the United States . "International trade has fallen by two–thirds since

The Federal Reserves' Role During the Great Depression
The Federal Reserve was faced with the ultimatum of either preserving the gold standard currently in place, or to dent the depression as quickly as
possible. Denting the depression would require much easier credit than the latter, but the "gold standard handcuffed governments around the world
(econlib)." After Britain went off gold, higher interest rates initiated by the Federal Reserve followed to "stem gold outflows." Once this happened, "the
discount rate went from 1.5 to 3.5 percent," which was a "huge increase" considering the current situation of the economy. Although the gold standard
was not the sole cause of the depression, there is a trace amount of evidence suggesting that it helped foster the depression in that "once countries
abandoned it" their "economies usually began to grow again (econlib)." Despite the fact that the actions of the Federal Reserve were not the leading
causes of the Depression, it is important to note that the decision to increase interest rates only instigated the crash of 1929, while also highlighting the
complications of the gold standard, which then led to its dismantlement and the initiation of slow but sure recovery.
The Dust Bowl
With 30 percent of Americans already agitated by the crumbling prices of agricultural goods, the severe drought known as the Dust Bowl, lasting
nearly ten years, wiped out farmers crops, and carries with it implications of prolonging the end of the Great Depression. Due to the advantageous
agricultural

Causes Of The Great Depression Essay

Recommended

Recommended

More Related Content

More from Kelly Flores

More from Kelly Flores (20)

Recently uploaded

Recently uploaded (20)

Causes Of The Great Depression Essay