The Great Depression: Effects and Solutions
Introduction
The Great Depression was probably the most devastating economic catastrophe in US history. As the 1920s went on, many grave problems threatened the economy. Despite the fact that some people became rich, many others could barely scrape up an adequate living. Many important businesses struggled. Consumers were stuck with deep debts. As the 1930s approached, it was clear that the economy was faltering.
The superficial wealth of the late 1920s concealed weaknesses that would signal the beginning of the Great Depression. Many events hinted at the depression. Industries such as railroads, textiles, and steel can barely make an income. New types of transportations such as trucks, buses, and private automobiles forced some railroad companies out of business. Mining and lumbering, which thrived during WWII, lost businesses due to the lack of demand. Because new forms of energy were introduced (natural gas, hydroelectricity, and oil), the coal industry saw their profits drop. One important indication is that new houses were built less and less. That's because when housing starts decline, so do jobs in other industries like furniture manufacturing. Another suggestion at a depression is in the farming area. The high supply of crops dropped its prices. Between 1919 and 1921, the annual income decreased from $10 million to $4 million.
In fact, the prosperity in the 1920s never actually existed. Many Americans were in debt already because of buying goods on credit. By making credit easy, Americans' debt thickened with each item on credit. Because many people had trouble paying off their debt, consumers cut back on spending. Another likely cause of the Great Depression was the uneven distribution of income. Between 1920 and 1929, the salary of the wealthiest 1% rose by 75%, while only a 9% increase as a whole. Over 75% of families earned less than...
Reviews of: "The Great Depression: Effects and Solutions"
:
More The Great Depression
essays:
The Great Depression: Causes and how the New Deal prolonged the Depression.
... American history. Although it was intended to restore America's devastated economy, the New Deal actually did little to encourage prosperity. Causes of the Great Depression. Easy Credit. Although the American economy thrived in the 1920s, much of this ...
The Great Depression: causes and cures
... most industrialized, especially the United States. In America, there were many factors contributing to the sudden economic crises that was the Great Depression. However ...
America's Great Depression.
... The Great Depression is probably one of the most misunderstood events in American history. It is routinely cited, as proof that unregulated capitalism is not the best in the world, and that only a massive welfare state, huge amounts of economic ...
The New Deal
... the Great Depression. The National Industrial Recovery Act also set the maximum amount of hours ... the problems brought on by the Great Depression. These ...
THE MAIN CAUSES OF THE GREAT DEPRESSION BY PAUL ALEXANDER GUSMORINO THE THIRD
... The Great Depression was the worst economic slump ever in U.S. history, and one which spread to virtually all of the industrialized world. The depression began ... in 1930, and up to thirteen million in 193249. The country spiraled quickly into catastrophe. The Great Depression had ...
The Great Depression & World War 2 versus Reforms.
... The Great Depression was the worst economic slump in the U.S History and had a devastating effect throughout the industrial world. The main causes for the depression was the combination of the greatly unequal distributions of wealth throughout the 1920 ...
The Great Depression - Main Causes, Impact on the Economy, Solving the Depression, and Lessons Learned. Works Cited included
... to form America into a better place. Works Cited Bender, David L. The Great Depression Opposing Viewpoints, 1994 Greenhaven Press, Inc. San Diego, CA Gerdes, Louise I. The Great Depression, Great Speeches in History, 2002 ...
Causes of The Great Depression.
... The Great Depression was the worst economic slump ever in U.S. history, and one which spread to virtually all of the industrialized world. The depression began ... in 1930, and up to thirteen million in 1932(end note 49). The country spiraled quickly into catastrophe. The Great Depression had ...
Great Depression
I'm appreciative of your good essay on what was arguably the most catastrophic economic event of the twentieth century, and perhaps even in American history as you suggest. The effect of a depression can be devastating, especially in human terms, and hopefully another such economic catastrophe can be averted.
I liked your discussion of causes such as investing on margin, speculation, a long agricultural recession, irresponsible policies by banks, protectionism in restraint of free trade (e.g., the Smoot-Hawley Tariff Act of 1930) and a lack of regulation of capital markets. I also liked your discussion of some of the effects of the depression such as years of extended economic downturn, decline and unemployment. One of the worst consequences was the rise of tyrants like Adolf Hitler who took advantage of the hard times to manipulate their countrymen into placing trust in them.
There is no question that FDR's New Deal helped to solve some of the problems of the depression, as you point out. It's somewhat ironic that World War II and its aftermath led to a fuller recovery from depression. Your report was well documented and researched. Good job!
7 out of 7 people found this comment useful.