• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

The Great Depression is said to have many factors that play a role in the dramatic downfall of the economy

Extracts from this document...

Introduction

THE GREAT DEPRESSION The Great Depression was a worldwide business slump of the 1930's. This event ranked as the worst and longest period of high unemployment and low business activity in modern times. The Great Depression began in October 1929 when stock values in the United States dropped rapidly. Thousands of stockholders lost great sums of money and many of them were wiped out. Factories, banks, and stores closed down and left million of Americans jobless and penniless. People started to depend on the government or charity to provide them with food. The Great Depression is said to have many factors that play a role in the dramatic downfall of the economy. Several explanations and reasons are offered for this major event that occurred in 1929. The Great Depression was one of the main reasons why World War II (1939-1945) had to happen. This dreadful incident affected almost every nation. It caused a sharp decrease in world trade because each country tried to help its own industries by raising tariffs on imported goods. ...read more.

Middle

For this reason, the banks lent out their money in the expectation that the customer would pay back the money with interest after getting rich. Many factories lost money and went out of business because of this great tragedy. The desperation for work and money became so bad that people were willing to work for as little as was offered just so that they could have enough money for their own survival. They all knew that soon it was a fight for life or death. Even though during the 1920's was a prosperous period for business, most of the farmers did not flourish. They were producing more crops and farm products than could be sold at high prices and so the prices of farm products fell and they remained low through the 1920's and as a result to this, some farmers lost so much money that they could not pay the mortgage of their farm. These farmers then had to either rent their land or move. The factories that were expanding to accommodate the consumer were actually over expanding and making too many goods. ...read more.

Conclusion

Exports from the U.S. to Europe exceeded imports. American loans and investments largely financed the exports. The Smoot-Hawley Tariff Act of 1930 contributed to the drop of the Great Depression. This law greatly increased a number of tariffs. Taxes rose so high that other nations reacted by raising tariff on U.S. goods. The Great Crash of 1929 was the end result of WWI. It affected the rich, the poor, the factory workers, the farmers, the bankers, and the stock brokers. In other words, it affected everyone. The Great Depression is known to be the worst economic disaster in the U.S. history. Depression dealt a fatal blow to the ideals of liberalism, democracy, and capitalism. For this reason, this event is known to have caused many people to change their ideas about the government and the economy. This tragic event ended after nations increased their production of war materials at the start of World War II. This increased level of production provided many jobs and put large amounts of money back into circulation. The depression had a lasting effect on the United States government and on many Americans. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our GCSE USA 1919-1941 section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related GCSE USA 1919-1941 essays

  1. The Wall Street crash, the great depression and its how it affected the lives ...

    Much like the agricultural industry is toiling today in Britain, so too was that of the Americans to an even greater extent, and even before the Wall Street crash and the great depression had set in to the rest of America.

  2. Explain the Causes and Effects of the Great Depression.

    As a result, production dropped, and many businesses closed down. "Between the two market crashes in October 24th and 29th, production fell 9%" (Paul A. p.6, 1996) while in 1932, 20,000 companies went bankrupt (Brooman. p.30, 1997). Consequently, many Americans lost their jobs.

  1. African Americans and life during the Great Depression.

    Soon word was out about the bonus and every veteran got together to see if a bill could be passed. Hoover vetoing the bill did not realize that it would become a problem later on. When African Americans and other veterans, about eight thousand, heard about the veto they set

  2. The nature and the causes of the Great Depression of 1929 in America.

    Many of the fully employed earned only the minimum to survive. Farmers belonged to this group. Other workers shared their work, to have a minimum support, but these lowered the demand for more expensive goods, and less money was invested.

  1. The great depression.

    Americans were at the time: on the street, unemployed, and uncertain of their future. To the owner's credit, the reduced salaries were not that low. The average major league salary during the Depression was higher than the regular worker's salary before the Depression (Gerdes 23).

  2. Explain how both the long-term and the short-term causes contributed to the great depression ...

    Once they were able to produce their own goods especially food they out up tariffs against produce from America. Britain in particular put up tariffs against America because they could now produce their own food and the reparations from Germany helped to rebuild their industry.

  1. America in WWI

    The Infantry, still today, are highly trained soldiers who fight with small arms, but are trained to use everything from their bare hands to missile systems in order to neutralize the enemy in close personally combat. The Infantrymen's Creed of the United States Marine Corps states, "To locate, close with,

  2. The Great Depression

    During the mid-1920s foreign lending to Latin America and Germany had expanded greatly (Paul Evans). By 1928 and 1929, high interest rates and the booming stock market of the United States caused this foreign lending to decrease (Richardson, September 2007).

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work