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

Was the Great depression well under way before the collapse of the stock market in October 1929?

Extracts from this document...

Introduction

Many saw the Wall Street crash as the beginning of the depression, however this isn't entirely realistic. It was responsible for a large contribution to the depression; but as the American economist Milton Friedman stated, "the stock market (crash) in 1929 played a role in the initial depression"1. However it is truly looked upon as the 'trigger' to the worldwide economic recession. I t can also be argued that the depression began to show signs of weaknesses before 1929. Before the actual Great Depression, the Harvard Economic Society and Galbraith believed, "the 'seven years of plenty' had run their course" 2, and generally believed that it was natural for prosperity to be followed by a slump, and named this as part of the economic cycle. This can support the fact that some experts expected an economic slump, as they believed that American prosperity balanced on very insecure foundations and that the economic infrastructure could not support such rapid expansion. The USA may have earned the short-lived name of the 'roaring twenties', and may have had Gross National Product that rose from $72.4 billion in 1919, to $104 billion in 1929. ...read more.

Middle

One example of how cultivation suffered was when the new prohibition laws were passed, this meant the grain trade suffered; this had to be accepted as a new era in which the farmers would have to eventually become accustomed to. This depression in agriculture in its own right was not a major sign of a 'general' depression, but Doug/Susan Willoughby stated, "1927...regarded as the year in which storm clouds began to appear over the American economy."5, which argues that there were many other issues that could have caused the Great depression. Joining the Farmers were the African-Americans, who suffered poverty before the Great Depression in 1929. George Schuyler, an African-American intellectual, commented during the Depression years that, "the reason the Depression didn't have the impact on the Negro that it had on the whites was that Negroes had been in the Depression all the time".6 As unemployment was low in the USA before the Great Depression, people were earning money to survive comfortably, and infact record numbers of people had a disposable income. Many people seemed to borrow extra money on 'easy credit' but this seemed fine as most citizens had employment with a reasonable income. ...read more.

Conclusion

As a consequence of this vicious circle, the countless citizens involved in the stock market began the 'panic selling of shares that brought America's golden age of prosperity to a close'. In conclusion, it is certainly not accurate to claim that the Great Depression was 'well under way' before 1929, despite the fact that the Agriculture, aswell as other areas of industry already suffering slumps in trade. A majority have agreed that Depression could not have been avoided as the Government stood by Laissez-faire politics, which provides no controls or protection for the economic structure that would allow the country and economy to thrive. In agreement to this John Hersch made a description about Governmental control, stating, "You had no Governmental control of margins...Anything went, and anything did go"8. 1 http://en.wikipedia.org/wiki/Great_Depression#The_Stock_Market_crash 2 The USA 1917-45 - Doug/Susan Willoughby 3 The USA 1917-45 - Doug/Susan Willoughby 4 The USA - 1917-45- Doug/Susan Willoughby 5 The USA - 1917-45- Doug/Susan Willoughby 6 The USA - 1917-45- Doug/Susan Willoughby 7 Prosperity, Depression and the New Deal - Peter Clements 8 Prosperity, Depression and the New Deal - Peter Clements ?? ?? ?? ?? Was the Great depression well under way before the collapse of the stock market in October 1929? ...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 crash (causes and consequences of the Wall Street Crash)

    It lasted for seven years. 60% of the people living in the dust bowl region lost their farms. By 1936, over 20m hectares of land in Kansas, Oklahoma, Texas, New Mexico and Colorado had become like a desert. Thousands of farmers were ruined.

  2. The Roaring Twenties

    Hundreds of licensed bars and brewery's soon became out of business, leaving large numbers of people unemployed. However, the new law began to offer criminals undreamed opportunities to make extremely vast amounts of money, keeping the tradition of selling and the consumption of alcohol and liquor very much alive.

  1. The Roaring Twenties

    MUSIC (JAZZ) * It was developed out of ragtime and blues music among black people in the southern parts of the USA. It rapidly spread throughout the USA in 1920s and provided black musicians with a way of gaining self-respect and admiration. Successful artists included Louis Armstrong and Duke Ellington.

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

    p.31, 1997). In some cases they actually died of starvation. Alongside hunger, Suicides also became an epidemic during the Depression. In 1932, 23,000 Americans committed suicide (Brooman. p.30, 1997). This was the highest yearly figure in American history. In fact, between 1926 and 1933, suicide rates increased from 12.6 per 100,000 people to 15.9 (Smith.

  1. 'The causes and effects of the great depression caused equal suffering to all of ...

    dole however the unemployment continues to increase therefore the march was not working and people became desperate. This source is quiet useful because it tells us what unemployed workers did to get a job also this source agrees with the hypothesis title because it says that all Jarrow were taking

  2. Why and with what consenquences did the US stock market crash in 1929?

    it did and this meant that foreigners couldn't come in and steal all of the trade with cheaper products. This meant that when times were good American companies really benefited but when times were bad after the Wall Street crash and the same American companies wanted to sell abroad, other countries put tariffs on their goods from America.

  1. How useful are sources D and E in helping you to understand the effects ...

    In 1936 there was an outbreak of Spanish Influenza, we can see from the figures that the national average in 1936 has increased. It may be due to the outbreak of Spanish Influenza which kills children and babies. The Death Rate in Jarrow is the same as in 1931.

  2. The effects of Industrialization and globalisation.

    And the reason for that increase might be indirectly related to the legacy of globalization. Of course, we all have basic emotional needs for food, water, and shelter. But in developed countries these needs often become confused. Luxuries are disguised as basic needs, and people are made to feel inadequate if they don't display evidence of material prosperity.

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