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Examine the extent to which the USA remained in a serious economic depression at the end of 1933.

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Introduction

Course Essay Examine the extent to which the USA remained in a serious economic depression at the end of 1933 The great depression that began in the autumn of 1929 was the worst in American history. It was much severe than any other America had been hit by - it affected more people and lasted much longer. For three grim years the economy kept crashing further down. Eventually it hit every industrialized country, the Soviet Union an exception. In 1927 the economy seemed to be strong and steady- the economy was expanding - New York began to buy shares in the stock market and prices of shares began to soar. America was therefore positively flourishing, there was a great prosperity and people were buying luxuries. ...read more.

Middle

Factories, as a result, began to stop their output. Further resulting in businesses losing money. This meant businesses had to start to lay off workers in order to save money. By this time it had dawned on some that they ought to get out of the stock market and sell there shares. On 23 October 1929 the stock market began to crash setting off a devastating economic collapse. Every body began to sell their shares as prices slumped. By the next day small investors, stock brokers and many others were ruined - some even tried to commit suicide. A lot of businesses closed down such as Anacoder copper and Radio. As a result of all this generations of savings had been wiped out, those who thought were making a good investment actually lost all their money which gradually resulted in people losing confidence in banks which would become an important fact, later in the new deal. ...read more.

Conclusion

American business men began to reduce stocks and production, thereby lying off workers as a consequence. During the years of 1929-32 American companies actually went bankrupt. This had repercussions not only within the American economy but also on foreign markets from which the Americans purchased. It also caused dramatic increase in unemployment as by 1932 approximately 1/4 of Americans were out of work. However those who managed to stay in work were faced with massive reductions in hours and wages. As mentioned before factories closed down, and business laid of workers, thus contributing to the already growing unemployment. The economic downturn hit a country poorly prepared to meet the demands of a mass unemployment. There had been no dole for the unemployed as in most European countries and for a long time the unemployed had relied on charity and neighborliness. Although, because of the extent of the depression this was no longer possible. ...read more.

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