FREE Reasons for the Great Depression Essay (original) (raw)

The Great Depression was a severe economic downfall, starting in 1929 and lasted until about the late 1930's or early 1940's. The Great Depression was the longest and most widespread depression of the 20th century. Economists have very different ideas and theories about what exactly caused the Great Depression. Many believe that the stock market crash of 1929 was the immediate and direct cause of the Great depression. However, the Great Depression was caused by many specific economic events leading up to the stock market crash of 1929, such as unequal distribution of wealth among the people and companies, bank failures, major decline in industries, and the collapse of the international trade.
One major contributor to the Great Depression was poor distribution of wealth among the people and corporate powers. On average, people's wages stayed the same even as prices for these goods increased. The factories and farms still continued to produce at the same rate, but demand for their products was decreasing. As a result, more and more workers became unemployed, until 25% of the population was out of work. Also there was a major unequal distribution of income that led to the "richest 1% of Americans owning 34% of the country's savings while about 80% of people had no savings at all" (Fremon 16). A major reason for this large gap between the rich and the poor was the increased manufacturing output. "From 1923-1929 output per worker increases 32%."(Fremon 18) However during that same time "average wages for manufacturing jobs increased only 8%"( Fremon 23). As a result, production cost rose quickly and wages rose slowly causing much of the benefit to go towards corporate profits. This large gap between the rich and the middle class/poor made the country's economy very unstable. In order for the nation's economy to be stable total demand has to equal total supply.

1. Reasons for the Great Depression

Other areas of concern during this time would be the decline in mining, automobiles and lumber just to name a few that were effected in a major way Another reason for the Great Depression and the market crash would be governmental policies or the lack there of. ... (Goldfield, Abbott, Anderson, Argersinger, Argersinger, Barney, 2014) The weakness of the economy also contributed to the foreign economy declining and another reason for the Great Depression. ... (The Causes of the Great Depression, n.d.) ... (The Causes of the Great Depression, n.dl) The cause or causes of the Great Depression...

2. The Great Depression

This crash led us into The Great Depression. ... The main problem that caused The Great Depression was unemployment. ... The Great Depression has greatly impacted the American society. ... The economy has changed drastically since The Great Depression. ... The reason that the American economy changed so rapidly after the depression was because of World War II. ...

3. Great Depression

The Great Depression The Great Depression was the greatest economic slump to ever occur in US history. The depression began in late 1929 and lasted throughout the following decade. Several factors played key roles in bringing about the depression. ... A major reason for the large and growing gap between the rich and the working class people was the increased manufacturing output throughout this time period. ... Though the Great Depression has long since ended, it continues to leave an indelible imprint on our economic society. ...

4. Great Depression

The reason for this enormous growth was because of the 2 major industries that evolved after WWI; such as automotive and the radio industry. ... So the average American was living quite content, but had no savings if something was to happen like, The Great Depression. ... The Great Depression was a worldwide phenomena, more than 1300 banks closed in 1930 and 3700 more within the next two years. ... At this time The Great Depression had psychological effects and health effects on our nation. ... In 1939, the final chapter to "The Great Depression" , WWII started and prom...

5. Great Depression

Great Depression was the worst and longest economic collapse in the history of the modern industrial world. ... During the Great Depression there were rapid falls in the production and sale of goods and a rise in unemployment. There were many factors to the cause of the Depression. ... Another one of the factors to the Great Depression was what the government had done or had not done to ensure that this would not happen. ... The reason this was done was the politicians believed that business was the key to business of America. ...

6. The Great Depression

The reason for this was to attempt to prevent another stock market crash from happening in the future. Economics during the Great Depression were very different than periods of time during the depression. ... People were not earning much money during The Great Depression. ... Political views also changed during the Great Depression. ... Shirley Temple, Will Rogers, and marie Dressler were few great performers during the Great Depression. ...

7. America's Great depression

America's Great Depression Causes Many people believe different stories about what caused the great depression. ... Although there were several reasons why the great depression started, this is the most cited one. However, this crisis did not actually cause the depression. ... Just hoarding cannot cause a recession or depression. ... One reason why prices and wages might stick is referred to as menu costs, which means it costs money to change a price. ...

8. Great Depression

Great Depression of the 1930's 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. ... The events that triggered a worldwide depression that led to deflation and a great increase in unemployment. ... I would say that was something like what we went through in the Great Depression. ... The other reason for me saying that America cannot withstand another Great Depression, is simply because the duration of the depression...

9. Franklin Roosevelt and the Great Depression

In 1929, a drastic event caused millions to fall into a depression; the Great Depression. ... During the Great Depression, unemployment soared, international trade plunged, and investment fell. ... During the Great Depression, community played a significant role within America. ... Franklin Roosevelt spent most of his presidency helping the desperate Americans through the Great Depression. ... During the Great Depression, all Americans had left were each other. ...

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