Causes Of The Great Depression

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Most Americans began to live a better life from 1922-1929 otherwise known as the seven fat years. This was due to the government’s relaxed approach towards the economy. The laissez-faire system was encouraged because there was little intervention from the state. Businessmen didn’t have to listen to government they could make their own decisions in order to produce profit and wealth. Government’s approach was pro-industry and anti-labour which meant that there was no protection for the workers thus leading to inequality, long working hours and not a enough pay for the workers to really feel happy or satisfied. Powerful monopolies were able to grow unchecked. Although the laissez is a reason for the crash it isn’t the only one reason. It can be argued that the economic isolationism, loans to Germany and other countries and unequal wealth and income etc. were the causes of the crash because America had many more influences than government not intervening and they were involved with a lot of things and people and would come out on the other side biting more than they could chew during the depression.
Inequality was a big problem in America and the workers were always at the bottom of the pecking order when it came to wealth. Economies that are doing well are economies that have even distribution of wealth amongst its people. However, this wasn’t the case in America during the seven fat years. Industrialists dominated the economy during the twenties. This was allowed by the Republican government. Both Harding and Coolidge put the interests of big business above the interests of the farmers and workers. The industrial production increased by 60% during the twenties but the workers’ salaries went up by 10%. This meant that the rich becam...

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... head and makes the decisions for the country. Therefore it can be said that the reason of the depression was because of the laissez-faire and the leaders who practiced it.
Therefore it can be said that the accuracy of the statement is incorrect because there were many reasons for the depression and the laissez-faire was a big reason but not the only reason. The economic isolation played a part in allowing America to not have any means of trade and wealth. American loans were costly for America and it took them time and favors from other countries to get them back on track. Inequality and unequal income and wealth was a big benefactor as well because the rich became richer and the workers lives didn’t change and the big businesses carried on speculating on the exchange with all their money eventually to the destruction of the once so lavish life of America.

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