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The Great Depression essay paper

The Great Depression was a recession the world economy, which began in most places in 1929 and ended in early 1933. However, until 1945 the world out of depression, so the 1930′s are generally regarded as the Great Depression, as stated in American Cultural History 1930-1939.

Preceded to the Great Depression an event of the U.S. stock market crash 1929: slump in stock prices that began in the “Black Thursday” October 24, 1929, has taken catastrophic proportions in the “Black Monday” (October 28) and “Black Tuesday” (October 29). October 29, 1929 was the day the stock market crashed on the Wall Street, as described in The Great Depression. Economists have not agreed on the causes of the Great Depression. Consequently, there are several theories on this, but, apparently, in the emergence of the economic crisis has played its role as a combination of factors:

- Keynesian explanation is the lack of money.
- Monetarism – the crisis has caused the Federal Reserve monetary policy.
- Marxism – a crisis of overproduction inherent in capitalism.
- Stock exchange bubble, investments in production in excess of actual need.
- Rapid population growth, a large number of children per family was typical of the old agrarian mode of production (an average of 3.5 children per family), but with the progress of medicine and a temporary increase in life were seriously reduced the natural decline due to disease.
- One of the factors forced the onset of the Great Depression, called the adoption of the Smoot-Hawley in 1930, introduce high tariffs on imported goods.
- The First World War and served as one of the causes of the Great Depression – the -American economy was at first “pumped” by military orders of the Government, which after the First World have fallen sharply, leading to a recession in the country’s defense industry and related sectors.
- Margin loans.

The Great Depression affects us today by reminding the mistakes that were made almost a century ago that caused so many problems for all humanity. Today’s economy also has many problems and there is a world crisis that influences the economy and people’s lives all over the world.

 

 

References

 

American Cultural History 1930-1939 (2008). Retrieved October 18, 2010 from

http://kclibrary.lonestar.edu/decade30.html

The Great Depression (2010). Retrieved October 18, 2010 from http://www.42explore2.com/depresn.htm