This website uses cookies to ensure you have the best experience. Learn more

Great Depression 8 Essay

2039 words - 9 pages

"The Great Depression of the 1930's was a worldwide phenomenon composed an infinite number of separate but related events." The Great Depression was a time of poverty and despair caused by many different events. Its hard to say what caused this worldwide depression because it's all based on opinion as opposed to factual data. There are many contributing factors but not one specific event can be pin pointed for starting the depression. It is believed that some events contribute more than others-such as the Stock Market Crash of 1929. The Stock Market Crash of 1929 was in the majorities opinion, a long and overdue crash that was bound to happen. Prices sky-rocketed so high that ...view middle of the document...

The drastic result of this oversupply made it hard for farmers to make money due to the fact that they had so much that they were forced to sell it at substantial low priced just to remain competitive enough to make even the small profit they were making. The imbalances were however, self correcting in which if manufacturers made too much of something, it's price would fall, profits would disappear, and the producers would cut back on output. In 1932 the American writer, Stuart Chase described cycles as "the spree and hangover of an undisciplined economy." Economists recognized the depression as a cycle in which there were four cycles; expansion; crisis(or panic); recession (or contraction); and recovery. The definitive description was made by Wesley Clair Mitchell of the University of California. A cycle Mitchell explained in Business Cycles(1913) was "the process of cumulative change by renewal of [Economic] activity develops into intense prosperity by which the prosperity engenders a crisis, by which crisis turns into depression and by which depression finally leads to.... a revival of activity." Banks played a significant role in the depression because they were in charge of all the money and interest rates. For example when banks had large reserves, they lowered interest rates. Cheaper loans encouraged manufactures to invest in new equipment and hire additional workers. The resulting expansion of production caused an upswing of the cycle. The increased borrowing eventually reduced the bank's reserves, thus resulting in a drastic increase of interest rates. That discouraged investors and slowed the economy down. Another good explanation was the bad distribution of wealth for the cycles. During these challenging and difficult times the rich opted not to spend there money: they saved in banks, vaults, etc. This resulted in increased investments, more production, and eventually more goods piled up on shelves and warehouses. Prices fell, production was cut back and workers were discharged. As a result, the economy entered the depression phase of the cycle. The crisis stage of the cycle was brought about by bank failures and by irrational selling of stocks ;thus causing business failures, a slowing in production, a rise in unemployment, and an overall optimistic view about the future. Another helpful aide in the depression was the chief International creditor who was described as "unexperienced and less careful about it's lendings because it was less dependent on this business than the chief pre-war tender, Great Britain." He granted huge short term loans to politically unstable nations. Lionel Robbins was a professor at the London School of Economics. He offered what was probably "the most influential contemporary explanation of the length of the downturn in the Great Depression(1934). The World War (World War I) had destroyed much property and stimulated...

Other Papers Like Great Depression 8

The Reasons of the Great Depression During 1930s

1951 words - 8 pages American Federal Reserve System and continued crisis in the banking system7 8. This paper examines the role of monetary policy in the early stages of the Great Depression and considers the mechanism whereby this policy may have affected real activity. I conclude that the depression was preceded by a dramatic shift towards a highly contractionary monetary policy. The economic impact of this policy seems unlikely to have come through the conventional

Psychology And Depression Essay

3572 words - 15 pages , because      they feel they can't stop or their problems will overwhelm them. 6.     Thoughts of Death or Suicide: this is the most dangerous one, and usually      not the easiest one to spot. If your friend drops casually remarks about      'not being here for much longer' or if they seem to have a great interest      with death. 7.     Upset Stomach/Nausea: most everybody, when thinking of depression      thinks of a mental and emotional

Analyze: Causes Of The Great Depression

553 words - 3 pages IntroThe 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 late 1929 and lasted for about a decade. Many factors played a role in bringing about the depression; however, the main cause for the Great Depression was the combination of the greatly unequal distribution of wealth throughout the 1920's, and the agricultural distress of the

Research Paper

1606 words - 7 pages . People with bipolar disorder go through sever mood swings. One minute they are happy and the next they are sad (Anxiety and Depression Association of America, 2014). These people suffer a great deal of sadness. They constantly doubt themselves and tend not to stay away and not be social. Although anxiety and depression are not the same, people who have anxiety can become depressed (University of Minnesota, 2014). Due to people being fearful of bad

Great Depression/Oil Crisis/Bank Crisis

626 words - 3 pages 8% in 1975 and would reach nearly 10% in 1982” (Reuss ). Many Economist believe that the 2008 Bank Crisis was the worse fall out since the Great Depression. The event was strongely correalcted to the morage business and how they lended loans to borrowers with poor credit history. These high risk morgages were passed by major banks labeling them as low-risk securities. Once passed, the loans were consolitated into pools. “The pooled

Great Depression

1230 words - 5 pages Frensisca Aristil Eco 2013-169825 Extra Credit Paper The Great Depression On Tuesday October 27th, 1929, the United States experience the worst crash of the stock market in history. It was so severe, economist called that Tuesday “Black Tuesday” Since many banks also invested in the stock market; the crash caused many banks to close their doors. Many people tried to sell their stocks but no one was buying. Although the

Economics 202

3096 words - 13 pages Christopher James Liebetrau G08L2114 Tutor: Candice Hittler Period 1 The Differences Between the Great Depression and the Current Global Financial Crisis Economics 202 Essay 1 29 April 2009 Abstract This essay sets out to distinguish the differences and similarities between the Great depression of the 1930’s and the current global financial crisis. It is an important discussion as a depression should not have happened again after

Social Studies

1303 words - 6 pages Chapter 5: Prosperity and Depression The War is Over During the Great War, Canada's industries were focused on wartime goods which drove up the cost of everyday goods. Returning soldiers focused that prices were doubled what they had known and their wages did not keep pace with prices. This forced lower sales which further hurt the Canadian economy. Unemployment increased and may wars vets could not find work. The 1920's were a period

Severe Depression from a Clinical Psychological Perspective

2075 words - 9 pages Adoption, to wit, the redemption of our body. But if we hope for that we see not, then do we with patience wait for it.” [ROMANS 8:24a,23b,25]. VI. FINAL OBSERVATIONS To conclude, the first priority in any case where there is suicidal gesture is to determine the suicide risk of the patient. This should be done in a hospital emergency room where medical clearance for the severe depression can also be done. All other matters considered will do no good

Progressive Era Through the Great Depression

2878 words - 12 pages GREAT DEPRESSION 8 Nicolau and promised Cuba its own parliament. The insurgents responded by declaring they wanted full independence. Of course, all of the atrocities and political foreplay regarding these events were graphically being depicted in the newspapers owned by William Randolph Hearst and Joseph Pulitzer—both of whom were eager for war with Spain (Gay, 1997). Unfortunately, all

Economics

3744 words - 15 pages to bad Policy decisions- However once it occurred Outside of Japan- this changed. Thought deflation Would only effect Japan due to bad Policy decisions- However once it occurred Outside of Japan- this changed. Until 2002, prospects for a deflation outside Japan remained unlikely. Prior to that time, deflation had been a phenomenon primarily of the 1930s and inextricably linked with the Great Depression, especially in the United

Related Essays

The Great Depression In Canada Essay

733 words - 3 pages Lesson 8 Unit 2 10. What were the consequences of the Great Depression for Canada? The Great Depression had a very negative effect on the economy of Canada. The stock market crashing at the beginning of the Depression sent many Canadians into immense debt and even those who sold their stocks out in time lost money. The crash of the stock market created a large problem for the economy; many banks had invested their client’s money in the

American Great Depression Essay

1122 words - 5 pages 'The economy of America was a bubble fit to burst'. Argue for or against this statement with your knowledge of the reasons for the depression. 'The economy of America was a bubble fit to burst' is a fitting statement to make in comparison to the great depression of America during the 1920s and 30s, and I agree with it; this is because the stock market was beginning to crash, and when news of its status reached American citizens, people began

Which Had A Greater Impact On Singapore; The Great Depression Or World War One?

597 words - 3 pages The following are external events that affected Singapore-The Great Depression and WW1. Which in your opinion had a greater impact on Singapore? Explain your answer. (8) Both the Great Depression and WW1 affected Singapore greatly, however the Great Depression had a greater impact on Singapore. WW1 was a war between two opposing powers, the Central Powers and the Allies in Europe. Although it was originally in Europe, it involved over thirty

The Great Depression Essay

2686 words - 11 pages . economy, that there was no correlation between the effectiveness of the tariffs to the economic drop before and after The Great Depression. In 2002, Jakob Madsen did a study to find out the effect of international tariff rates during the time of The Great Depression. He concluded that international trade made up about 33%. Of that 33%, 14% could be attributed to declining market values in each country, 8% because of tariff rates being increased, 6