• 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...


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.


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.


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. Explain the Causes and Effects of the Great Depression.

    p.30, 1997). Consequently, many Americans lost their jobs. This meant that an increasing amount of people began defaulting on their various bank loans. Since many banks already made huge losses on the stock market, customers' inability to repay loans left them no choice but to close down. As a result, many people panicked and tried to withdraw their money from their banks.

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

    Even worse was to come as the great depression set in to the remainder of the population. As other Americans got poorer, so too did they and they found themselves with less and fewer customers, as the public could no longer afford luxury goods.

  1. Was the Great depression well under way before the collapse of the stock market ...

    This decade was certainly an era in which alot of change occurred, and therefore adjustments in different industries were completely necessary, which would obviously create problems. This relatively new 'poverty' is agued by some, as reflecting effects the changing times, and not as a sign of depression.

  2. History Coursework 2 - The Great Depression

    It also says, " not enough people were buying the products of America's greatly expanding industry's". It is suggesting that production was growing quickly but the people who could afford these goods was growing at a slow rate. Both sources B and C gives another cause of the depression.

  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. Consider the arguments for and against the claim that the causes of the Great ...

    The way the farming industry had become so efficient since the introduction of the tractor in Illinois in 1889 and the improvements in crop fertilisers and animal husbandry meant that labour costs could be reduced and more could be produced for the same cost.

  1. What caused the great depression?

    The farmers then became too efficient, they flooded the market with their produce, and they had produced far more food than America could eat. They created a lot of surplus food. The farmers had to sell their goods so they lowered the price, as there was so much of the food, a lot of the prices became too low.

  2. The Great Depression

    This downturn of other countries started looking like the one occurring in the United States (Romer). Banking panics along with financial crisis started occurring in other countries around the world, not just in the United Sates (Richardson, September 2007). By forcing countries to deflate, the gold standard reduced the value

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