What Are The Causes Of The Great Depression In The 1930s

The great depression, we all have heard about it. I didn’t have the chance to study or to learn more about it. Now I have the chance to learn more by reading the article. During the 1920s the world experienced a catastrophic economic collapse, the likes of which that never been seen before. It was unlike previous “depressions” when economic activity would always recover following few years of economic failure. The one that spread-out in the 1930s was greater in magnitude, a 25% to 50% drop in total production; was longer in duration, took roughly ten years from 1929 to 1939 and was wider in scale, overwhelmed the whole of the global economy. With unemployment rates climbing to 25% in the United States and Britain and 40% in Germany, governments

Almost overnight, they put thousands of banks in jeopardy. The more money Americans withdrew, the more banks failed, and the more banks failed, the more money Americans withdrew. By 1933, more than 11,000 of the nation’s 25,000 banks had collapsed. And that was huge lost for the banks bank in 1933.

Here are some interesting facts about banks and bank failures during the Great Depression: An estimated 9,000 banks failed during the 1930s and the Great Depression. In 1933 alone, people who had money deposited in banks lost approximately 140 billion dollars. In 1933, Franklin D. Roosevelt declared a three-day National Bank Holiday to prevent people from withdrawing money from banks. To sell the idea of a cooling off period to the American public, Roosevelt uttered the line that would become famous: “The only thing we have to fear is fear

Land turned to dust and large dark clouds could be seen across the horizon in Texas, Oklahoma, Kansas, Nebraska, Colorado, and New Mexico. The agricultural depression was a major factor in the Great Depression, as bank loans went bad credit dried up, and banks closed across the country.

Throughout the 1930s more than a million acres of land were affected in the Dust Bowl, thousands of farmers lost their livelihoods and property, and mass migration patterns began to emerge as farmers left rural America in search of work in urban areas. This migration added to Great Depression unemployment disasters, stressed relief and benefits programs, and created social conflict in many large American cities.

The Main Areas of Depression: The United States economy had experienced rapid economic growth and financial excess in the late 1920s, and primarily the economic depression was seen as just part of the boom-bust- boom cycle. Suddenly, however, output continued to fall for the three and a half years, by which time half of the population was in desperate circumstances. It also became clear that there had been serious over production in agriculture, leading to falling prices and a rising debt among farmers. The situation was aggravated by serious policy mistakes of the Federal Reserve