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Essay about wall street crash of 1929
Essay about wall street crash of 1929
Essay about wall street crash of 1929
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Impact of Great Depression on International Relations in the 1930s
In the early 1920s the Great Depression hit. The chaos caused by the
First World War was the main reason for the Great Depression. The USA
had lent large amounts of money to other countries to help with their
damages from the war. The loans that the USA made helped the countries
to recover trade. Many countries tried to protect their industries by
putting taxes on imports. In 1930 USA the biggest trading nation in
the world also raised their taxes. This made the world trade suffer
badly as it made it difficult to sell goods to America.
World trade was already very difficult so when the Wall Street Crash
hit there was a worldwide economic slump. The American stock market
was centered on Wall Street in New York. American banks wanted all the
money lent out repaid back to them. Banks and factories closed and
soon all the countries had loss of imports and exports.
The Depression.
Germany was affected the most by the Great Depression. Agricultural
prices fell. This brought poverty to the countryside. The Wall Street
Crash meant the withdrawal of the USA loans. This hit Germany worse
than other countries. Unemployment rose to 5.5 million in 1931. Also
in 1931 the five major banks crashed in Germany. Because of this many
businesses failed and most middle class people lost their savings. The
Depression brought Hitler and the Nazis to power. One of the many
reasons for Hitler becoming leader was because he promised to tear up
the Treaty of Versailles. The first chance of survival, which happened
to be Hitler who gave them promises, which they hoped were true, was
...
... middle of paper ...
...made them delay
rearmament and become isolated. France came across the same problems
as all the other countries. Loss of jobs, homes and the country became
desperate. France had no money or army and problems from Italy lead to
the collapse of the league because Britain and France couldn't do
anything.
Conclusion.
The league helped settle some disputes. It helped improve
international communications, people's living but the league never
achieved its main aim which was to prevent wars. Without the USA the
league could not stop Japan and Britain and France could have stopped
Italy if they had acted quickly but they were to scared of invasion.
The league did not help to stop the aggression because they did not
believe it was in there best interest. Self-interest is one of the
main reasons why the league failed.
The region later became known as the dust bowl. The election of Franklin D Roosevelt and the introduction of the new deal in 1932 helped restore the confidence in the United States and marked the beginning of the end of the depression there. In many countries the great depression resulted in a big shift in public attitudes and in government policy towards welfare provision. The second reason was the unpopularity of Hoover. Hoover was the 31st president of the United States and held office during the great depression.
... The depression didn't just happen in the United States either, it spread to many other countries, especially in Europe. Since Europe had similar currency and gold standards as the United States, they took a harder hit than other foreign countries. The unemployment rate in Germany, Austria and Poland rose to 20% while output fell by 40%. By November 1932, every European country had increased taxes or introduced import quotas.
The great depression came about for many different reasons. Some of these reasons are due to the stock market crash of 1929. Most people think that this is what started the great depression but actually it was only part of it. The upper and lower classes played a big role on wages for what was paid between the two different classes. Because of this wage difference it had an impact on the banking system. Also America became know as a credit nation vs. a debtor nation. Which meant that the United States was owed more money by other countries and the United States owed. Another problem that the United States was having is that the whole dollar vs. gold. During the 1930's the United States was still on a gold value system where paper money had no value. With all of these factors and the stock market crash of 1929 was just the final straw that broke the camels back as the saying goes. With the depression going and 1 out of every 4 people not having a job, the country was in serious trouble. Franklin D. Roosevelt came up with the New Deal. The New Deal was also known as Works Progress Administration (WPA). The program put 8,500,000 of Americans back to work. The work consisted of everything from building public parks and a writers program to paying farmers not to plant crops. This is the part of the New Deal that I will be addressing. The Agricultural Adjustment Act also known as AAA. The AAA act came about to stabilize prices and overproduction on farm products such as cotton, wheat, corn, rice, tobacco, hogs and milk.
The Great Depression of 1929 to 1940 began and centered in the United States, but spread quickly throughout the industrial world. The economic catastrophe and its impact defied the description of the grim words that described the Great Depression. This was a severe blow to the United States economy. President Roosevelt’s New Deal is what helped reshape the economy and even the structure of the United States. The programs that the New Deal had helped employ and gave financial security to several Americans. The New Deals programs would prove to be effective and beneficial to the American society.
Firstly, the stock market crash in the late 1920s was one of the main factors that contributed to the onset of the Great Depression. The common goal of many Canadians in the roaring twenties was to put behind the horrors and doubts of World War I, and focus on what was to come in the near future. However, on October 29, 1929, the Stock Market in New York City experienced one of its worst days of all time. The catastrophic impact that the stock market crash had was enough to shift the world in the direction of an economic downfall. The rapid expansion of the 1920 stock market caused the market to hit an all-time high.
When the economy starts to flourish, money began to concentrate into the hands of fewer people. As a result, the middle class began to spend more money to maintain living statuses drawing deeper and deeper into debt. Soon the bubble of debt pops, hence the great depression. According to Reich, an economy 's stability is dependent on the prosperity of its middle class. The cause of the depression was the growing wages and money not being returned to the middle class. The Virtuous Cycle of a healthy economy occurs in 6 steps: productivity growth, wage increase, more jobs, tax revenues increase, government investments, and educated workers. A healthy economy is possible, but it is not our reality today.
The first factor in the start of the Depression was the lack of diversity in the American Economy. It relied strongly on only a few basic industries, notably the construction and automobile industries. In the 1920's those 2 industries began a rapid decline: construction became scarce and fell from 11 billion to under 9 billion between 1926 and 1929. The automotive industry fell more than one third in the first nine months of 1929. Second, there was a maldistribution of purchasing power, and as a result a weakness in consumer demand. As major industries increased, the percent of profits going to consumers was to small to create adequate market for the goods the economy was producing. A third major problem was the credit structure of the economy. Farmers were greatly in debt, and crop prices were extremely low. Small banks were in trouble, many customers defaulting on their loans. Big banks were in trouble as well, many investing recklessly in the stock market then losing it all when the stock market crashed in 1929. The fourth factor was Americas position in the international trade market. In the late 20's, Europe's demand for American goods began to decline, partly because their industry was becoming more productive and partially because their economy was destabilized from the international debt structure that emerged in the aftermath of WW1. The international debt structure was a fifth and final factor contributing to the Great Depression. At the end of the war in 1918, all the European nations that had been allied with the US owed large sums of money to American banks and could not repay them with their shattered economies. The reparation payments were needed greatly from Germany and Austria, yet they were no more able to pay than the Allies were. This caused American banks to begin making large loans to European governments which they used to pay off their earlier loans, really only piling up debts. The collapse of the international credit structure in 1931 was one of the reasons the Depression spread to Europe.
"No business which depends for existence on paying less than living wages to its workers has any right to continue in this country," - Franklin D. Roosevelt ("Thinkexist.com"). In the middle of the deepest economic recession in the history of the United States, Franklin D. Roosevelt took office and did everything in his power to try and turn the country around. Roosevelt was a very intelligent man and the country believed he would lead them out of the Great Depression (Brinkley). Roosevelt inspired the nation to make drastic changes during the Great Depression with his extensive knowledge, understanding of the people's suffering, and new government reforms.
The occurrence of the Great Depression was an inevitable economic disaster that was caused by a variety of reasons and events that happened in the U.S. and across the world. The lack of diversification was one of the main causes of the Great Depression as the dependence on only certain industries like the automobile industry began years before; and because of the prolonged success of such industries, their demise could not have been predicted. World War I was an event that had a major impact on the Great Depression because of the complexity of the international debt owed to the U.S, and the decline of international trade. In addition, the failure of the bank system and the reckless investments that banks, businesses and the American public made contributed to the manifestation of the Great Depression.
Hitler was able to rise to power because of desperation and a desire for change among the German people. The Great Depression began in the United States in
Great Depression was one of the most severe economic situation the world had ever seen. It all started during late 1929 and lasted till 1939. Although, the origin of depression was United Sattes but with US Economy being highly correlated with global economy, the ill efffects were seen in the whole world with high unemployment, low production and deflation. Overall it was the most severe depression ever faced by western industrialized world. Stock Market Crashes, Bank Failures and a lot more, left the governments ineffective and this lead the global economy to what we call today- ‘’Great Depression’’.(Rockoff). As for the cause and what lead to Great Depression, the issue is still in debate among eminent economists, but the crux provides evidence that the worst ever depression ever expereinced by Global Economy stemed from multiple causes which are as follows:
The Great Depression is known as the greatest time of recession in American history. Many factors contributed to this hard time. With the stock market boom in the 1920’s, our country was filled with optimism for the future. Although there were signs of problems to come former President Herbert Hoover was just as convinced as the nation that they were only going through a rough patch and would be back on their feet in no time. That was until the stock market crash of 1929, which marked the beginning of the Great Depression. The stock market crash led to bank and company failures. Many people became unemployed and had to leave their homes. Families also had to move away because of the drought that caused dust storms and ultimately the Dust Bowl. Soon enough, thousands were migrating to find jobs elsewhere. Eventually when former President Franklin D. Roosevelt was elected into office, he presented America with “The New Deal,” the plan that would save America and bring the nation up and out of the recession.
There were many primary causes for The Great Depression, Unequal distribution of money to the economy,
World War I came to an end in November of 1918, when the Treaty of Versailles was signed. This treaty ended the fighting and of many other results, it put the blame on Germany for the war. This resulted in Germany having to pay major reparation fee’s and put Germany in a financial hole. The treaty took away parts of Germany’s land and made it impossible for them to use their natural resources to profit from. The amount that Germany had to pay back was more then they could, and this started a chain reaction for the transfer of money. In 1924, The Dawes Plan was signed into action and the U.S. became a creditor nation. Germany owed around 32 billion in war reparations. They were unable to pay this, so the U.S. loaned Germany money, with that Germany paid European countries War Reparations, and with the reparation money they received, U.S exports were able to be bought. This benefited the U.S. because the loans would have to be paid back with interest, and it let the economy experience a boost because goods were able to be exported. The Dawes Plan boosted the American economy, while facilitating other European countries’ attempts to reestablish a stable financial state after World War One. This time period in the 1920’s is referred to as the ‘roaring twen...
The 1930s brought the deepest and longest-lasting economic downturn of the Western industrial world (http://www.history.com). This economic downturn was known as ‘The Great Depression’ (http://www.history.com). The Great Depression in the United States soon began after the stock market crash of October 1929 (http://www.history.com). Consumer spending and investment dropped which caused a decline in industrial output and led to rising levels of unemployment (http://www.history.com). During this time period money was scarce. People did what they had to do in order to make their lives happy (http://wwwappskc.lonestar.edu). The Great Depression was hard on the economy which in turn affected how people lived their lives and spent their money.