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

The Great Depression

Extracts from this document...

Introduction

The Great Depression began in October 1929, when the stock market in the United States dropped rapidly. Thousands of investors lost large sums of money and many lost everything. The crash led us into the Great Depression. The period of the great depression ranked as the longest and worst period of high unemployment and low business activity in modern times. Banks, stores, and factories were closed and left millions of Americans jobless, homeless, and broke. Many people came to depend on the government or charity to provide them with food. There were several causes of the great depression including bank failures, the stock market crash, and unequal distribution of wealth, economic policies, overproduction, and drought conditions. The 3 major cause of the depression was the stock market crash, bank failures, and distribution of wealth The stock market crash of 1929 helped trigger weaknesses of the American economy. On Black Tuesday, investors panicked and dumped an unprecedented 16 million shares. ...read more.

Middle

Hundreds of banks failed during the first months of the Great Depression, which produced an even greater panic and rush to withdraw private savings.2 In the first 10 months of 1930 alone 744 US banks went bankrupt and savers lost their savings. Banks became desperate to raise money so they tried to call in their loans before people had time to repay them. As banks went bankrupt, it only increased the demand for other savers to withdraw money from banks. People waited in long lines to withdraw their savings were a common sight during the crisis time. The government appeared unable to stop bank runs and the collapse in confidence in the banking system.3 Because of the banking crisis, Banks reduced lending and that lead to there was a fall in investment. People lost savings and that lead to reduces of consumer spending. The economic impact of the great depression was disastrous. Over the time period 9,000 banks went bankrupt of closed their doors to avoid bankruptcy. ...read more.

Conclusion

From 1923-1929 the average output per worker increased 32%. During that same period of time average wages for manufacturing jobs increased only 8%. The production costs fell, wages rose slowly, and prices remained constant. The benefit of the increased productivity went into corporate profits. The federal government also played a part in this gap between the rich and middle-class. Calvin Coolidge's administration favored business. With his Revenue Act of 1926 greatly reduced federal income and inheritance taxes. The act encouraged excessive spending which was a problem in the long run. 7 The Great Depression was an economic slump in North America, Europe, and other industrialized areas of the world that began in 1929 and lasted until about 1939. It was the longest and most severe depression ever experienced by the industrialized Western world. There were many factors of the great depression. I believe the stock market crash, bank failures, and the unequal distribution of wealth were the main causes of the depression. If these 3 factors did not occur in the great depression then the U.S. would have had a greater chance of the great depression never happing in the first place. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our International Baccalaureate History 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 International Baccalaureate History essays

  1. The North, The South, and Slavery

    Custodians of morality and benevolence (household) 2. Provide religious and moral instruction to children and counterbalance secular husbands 3. "Cult of domestication brought benefits and costs to mid-class women a. Live lives with more material comfort b. Values on female virtues and roles as wife and mother c.

  2. Alexander the Great

    He was a consummately resourceful tactician who exhibited both swiftness of movement and patience (which used in his long siege of Tyre) when necessary. His success also partially came from his superb adaptability at dealing with un familiar tactics of warfare such as elephants and chariots armed with scythes.

  1. The Effects of the Great Depression on Canada.

    Sometimes, water was gotten from an outdoor pump. So to save money, districts combined with nearby schools, dropped staff lines, postponed new construction, and increased class size. Some city schools started progressive classrooms. In these classrooms teachers let the students choose what subjects they wanted to learn. Which forced many parents to go against those progressive classrooms.

  2. Notes on the History and Development of the Arab-Israeli Conflict

    - Hamas, the military arm of the Muslim brotherhood, began activities in 1988 as a result of the Intifada and quickly became the dominant religious and political force. Initially, Hamas received Israeli support as they hoped to open a divide between fundamentalists and the PLO.

  1. Evaluate Roosevelt's Approach to the Great Depression

    The PWA was supposed to serve as a "pump-primer," providing people with money to spend on industrial products, however the head of the program, Harold Ickes, was so concerned about potential scandal that the PWA did not spend enough money to significantly reduce unemployment.

  2. How the Federal Government Failed the Canadian People During the Great Depression

    Voters found Bennett?s promises appealing and he was elected Prime Minister over King. Bennett became wary of the budget short falls by 1932, and cut back severely on federal spending.

  1. The Great Depression in the USA.

    in the whole country .Money fell for the 53 % in the same period , so demand fell as a result of that. It reduced production of goods as well . If we continue with this , as demand for goods fell rapidly , due to that many factories were closed .

  2. To begin to understand how the Great Depression came about, it is essential to ...

    The Federal Reserve which served as the nation's watchdog of the economy had the power to set interest rate for loans issued by banks. During the twenties the "Fed" set low interest rates to encourage more installment spending; however, in 1929 the Fed worried that growth was too rapid so

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