The Great Depression


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The Great Depression Essay, Research Paper

Deep discontent, which has been brought on by the worst economic depression in the history of the United States, swept Roosevelt onto presidency. During his campaign he pledged himself not only to lift the country of depression, but also to get up economic safeguards in an effort to prevent future depressions in the United States.

The depression had steadily grown worse, between twelve and fifteen million industrial workers had lost their jobs. The sharp fall in prices of farm products had brought many persons to a state of poverty. Millions of farmers and city workers had lost their homes and more were about to lose them, because they had no money to pay their taxes and interest on their mortgage. The Great Depression was not solely a result of economic practices. The Great Depression took a momentum of its own. Individuals with mortgages on their homes, who bought cars and other goods on credit and who had purchased stocks on margins “lost it”. They stopped purchasing luxurious items such as radios causing them to close down plants or run them only part-time. Thousands of workers were laid off as orders were canceled for copper, wood cabinets, and glass radio tubes. Because of this jobless workers could not meet mortgage payments or repay loans they lost their property. Banks that lent them money failed, wiping out

Roosevelt went into action swiftly and vigorously. His first official act declared a “banking Holiday” until treasury officials could examine all banks. The banks that found to be in good financial condition would be supplied with all the money they needed and would be allowed to reopen for business. Those found to be doubtful would be kept closed until they had been put on a sound basis. Those found to be without sufficient funds for operation would not reopen at all.

The action ended the banking crisis. Everyone knew that if bank doors were open to all, it passed the test and was “safe”. Few persons wished to withdraw to withdraw their money if they knew the bank was sound. The “Runs” stopped, and banking became normal again.

Milton Friedman, an individual that the monetarist was linked with, viewed much of the Great Depression. Monetarists do not deny the importance of the decisions made by businesses about investments in the early 1930s. Friedman, however, places more emphasis on the drop of the amount of money in circulation as aggregation demand. This, in turn, caused businesses to reduce their investments. Despite the federal’s stated goal of stimulating the economy, the money supply decreased by one-third from the start of the recession in 1929 to the depths of the Great Depression in 1933 and 1934. The Monetarists claimed that what would have been just another recession became the Great Depression because of the federal’s action. During the period, the federal claimed he wanted banks to loosen their credit. At the same time, the federal continued to sell government securities. This reduced the money in circulation. As a result, people would have been able to invest.

The largest drop that resulted in a depression immediately followed the stock market crash in October 1929. The preceding years had been a time of widespread prosperity. By September 1929, heavy speculations had driven stock prices to an all-time peak. Then the stock market began to collapse. Stock prices began to fall. Suddenly on October 28, there was a national stampede to unload stocks. In one day the total value of all stocks fell by $14 million. The next day economic crisis was even worse. Not long after the stock market crash, the United States fell into a serious recession. Factories shut down, lying off millions of workers. Businesses and banks failed by thousands. Real gross domestic products (GDP) fell sharply over the next few years, pushing the nations into depts. of the Great Depression. This period of the US and economic depression during the 1930s that was immediately precipitate by the disastrous stock market collapse on Wall Street on Black Friday, Oct. 29,1929. This heralded a period of high unemployment, failing business and banks and f, and falling agricultural prices. Millions of workers were unemployed during the period. There were many causes of the Great Depression: Easy credit had led to widespread stock speculation; the world had not completely from World War I; U.S economic policies under Herbert Hoover had created domestic overproduction and less foreign trade. Franklin D. Roosevelt, elected president in 1932, brought in the new deal measures, but full recovery of the economic occurred only with the beginning of defense spending immediately prior to World War II.

As the depression tightened its grip on the United States, millions lost their jobs. By 1932, 25 percent of American workers were out of work. Sidney Lens of New York’s view on the Great Depression was the unemployment rate remained near 20 percent throughout the decade. Industrial cities were the hardest hit, workers who managed to keep their jobs worked only part-time or for reduced wages. Unemployed people tried to earn a few cents by shinning shoes or selling apples on the street corners. Those who had lost their homes built shelters out of old boxes and debris, sometimes grouped together in pitiful shantytowns such as Hooverville because of this President Hoover wondered why the president did nothing to end the suffering. Eventually Hoover recognized that the federal ran out of money, however, and that combined spending by all three levels of government declined. Hoover tried a different measure on January 1932, when he asked congress to create the Reconstruction Finance Corporation (RFC). The RFC lent money to businesses. It also provided funds for state and local programs providing relief. However, the RFC’s directors were reluctant to may risky loans, and much of its budget remained unspent.

Many people thought that women should not hold jobs as long as men were unemployed. Despite such prejudice, desperation drove a large number of women into the workforce. Many families survived in women in the workforce. Women also worked harder at home to make ends meet. Instead of buying clothes and grocery they sewed their there own clothing, baked their own bread, and carved their vegetables. Some women started home businesses such as laundry and boarding houses.

In the south more than half of the Americans had no jobs. African American urban workers found their jobs taken by the whites who had lost theirs. The collapse of farm prices crushed African American farmers. Seeking more opportunities, about 4000,000 African American men, women, and children migrated northern cities during the decade. African Americans did make some gain during the Great Depression. President Roosevelt appointed a number of African Americans to federal posts. He had black advisor Robert Weaver, a college professor, and Ralph Bunch, who worked for the state.

Preceding years had been a time of widespread he stock market crash, the a serious recession. Factories shut down, lying off millions of workers. Businesses and banks failed by the thousands. Real gross domestic products (GDP) fell sharply over the next few years, pushing the nations into debts of the Great Depression. Wector Dixon p.47

In conclusion, the amount of money loaned by the governments couldn’t be paid back as a result everyone went bankrupt.

Deep discontent, which has been brought on by the worst economic depression in the history of the United States, swept Roosevelt onto presidency. During his campaign he pledged himself not only to lift the country of depression, but also to get up economic safeguards in an effort to prevent future depressions in the United States.

The depression had steadily grown worse, between twelve and fifteen million industrial workers had lost their jobs. The sharp fall in prices of farm products had brought many persons to a state of poverty. Millions of farmers and city workers had lost their homes and more were about to lose them, because they had no money to pay their taxes and interest on their mortgage. The Great Depression was not solely a result of economic practices. The Great Depression took a momentum of its own. Individuals with mortgages on their homes, who bought cars and other goods on credit and who had purchased stocks on margins “lost it”. They stopped purchasing luxurious items such as radios causing them to close down plants or run them only part-time. Thousands of workers were laid off as orders were canceled for copper, wood cabinets, and glass radio tubes. Because of this jobless workers could not meet mortgage payments or repay loans they lost their property. Banks that lent them money failed, wiping out

Roosevelt went into action swiftly and vigorously. His first official act declared a “banking Holiday” until treasury officials could examine all banks. The banks that found to be in good financial condition would be supplied with all the money they needed and would be allowed to reopen for business. Those found to be doubtful would be kept closed until they had been put on a sound basis. Those found to be without sufficient funds for operation would not reopen at all.

The action ended the banking crisis. Everyone knew that if bank doors were open to all, it passed the test and was “safe”. Few persons wished to withdraw to withdraw their money if they knew the bank was sound. The “Runs” stopped, and banking became normal again.

Milton Friedman, an individual that the monetarist was linked with, viewed much of the Great Depression. Monetarists do not deny the importance of the decisions made by businesses about investments in the early 1930s. Friedman, however, places more emphasis on the drop of the amount of money in circulation as aggregation demand. This, in turn, caused businesses to reduce their investments. Despite the federal’s stated goal of stimulating the economy, the money supply decreased by one-third from the start of the recession in 1929 to the depths of the Great Depression in 1933 and 1934. The Monetarists claimed that what would have been just another recession became the Great Depression because of the federal’s action. During the period, the federal claimed he wanted banks to loosen their credit. At the same time, the federal continued to sell government securities. This reduced the money in circulation. As a result, people would have been able to invest.

The largest drop that resulted in a depression immediately followed the stock market crash in October 1929. The preceding years had been a time of widespread prosperity. By September 1929, heavy speculations had driven stock prices to an all-time peak. Then the stock market began to collapse. Stock prices began to fall. Suddenly on October 28, there was a national stampede to unload stocks. In one day the total value of all stocks fell by $14 million. The next day economic crisis was even worse. Not long after the stock market crash, the United States fell into a serious recession. Factories shut down, laying off millions of workers. Businesses and banks failed by thousands. Real gross domestic products (GDP) fell sharply over the next few years, pushing the nations into depts of the Great Depression. This period of the US and economic depression during the 1930s that was immediately precipitate by the disastrous stock market collapse on Wall Street on Black Friday, Oct. 29,1929. This heralded a period of high unemployment, failing business, banks, and falling agricultural prices. Millions of workers were unemployed during the period. There were many causes of the Great Depression: Easy credit had led to widespread stock speculation; the world had not completed from World War I; U.S economic policies under Herbert Hoover had created domestic overproduction and less foreign trade. Franklin D. Roosevelt, elected president in 1932, brought in the New Deal measures, but full recovery of the economic occurred only with the beginning of defense spending immediately prior to World War II.

As the depression tightened its grip on the United States, millions lost their jobs. By 1932, 25 percent of American workers were out of work. Sidney Lens of New York’s view on the Great Depression was the unemployment rate remained near 20 percent throughout the decade. Industrial cities were the hardest hit, workers who managed to keep their jobs worked only part-time or for reduced wages. Unemployed people tried to earn a few cents by shinning shoes or selling apples on the street corners. Those who had lost their homes built shelters out of old boxes and debris, sometimes grouped together in pitiful shantytowns such as Hooverville because of this President Hoover wondered why the president did nothing to end the suffering. Eventually Hoover recognized that the federal ran out of money, however, and that combined spending by all three levels of government declined. Hoover tried a different measure on January 1932, when he asked congress to create the Reconstruction Finance Corporation (RFC). The RFC lent money to businesses. It also provided funds for state and local programs providing relief. However, the RFC’s directors were reluctant to may risky loans, and much of its budget remained unspent.

Many people thought that women should not hold jobs as long as men were unemployed. Despite such prejudice, desperation drove a large number of women into the workforce. Many families survived in women in the workforce. Women also worked harder at home to make ends meet. Instead of buying clothes and grocery they sewed their there own clothing, baked their own bread, and carved their vegetables. Some women started home businesses such as laundry and boarding houses.

In the south more than half of the Americans had no jobs. African American urban workers found their jobs taken by the whites who had lost theirs. The collapse of farm prices crushed African American farmers. Seeking more opportunities, about 4000,000 African American men, women, and children migrated northern cities during the decade. African Americans did make some gain during the Great Depression. President Roosevelt appointed a number of African Americans to federal posts. He had black advisor Robert Weaver, a college professor, and Ralph Bunch, who worked for the state.

Preceding years had been a time of widespread he stock market crash, the a serious recession. Factories shut down, lying off millions of workers. Businesses and banks failed by the thousands. Real gross domestic products (GDP) fell sharply over the next few years, pushing the nations into debts of the Great Depression. (Wector Dixon p.47)

In conclusion, the amount of money loaned by the governments couldn’t be paid back as a result everyone went bankrupt causing real gross domestic products to fall sharply over the next few years.

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