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1 Your Name: Instructor’s Name: Class Information: Date: Great Depression of the American Economy Great Depression was an austerely down trend in the economic activity of the world in the decade foregoing World War II. The time duration or rather the time for the Great Depression Was not fixed. It varied from countries to countries. However, in many countries it was experienced in the year 1930 and it lasted till the midst of 1940. The time duration for the Great Depression was for a longer period of time and it was considered the longest as well as the deepest depression of the twentieth century The beginning point of the Depression was the fall or the crash in the stock market in U.S. The fall in the prices of stock began in the year 1929 on 4th September and the stock market crashed on the 29th of October in the year 1929. This day was known as the Black Tuesday. The Great Depression affected severely all the sections and the class of the society in the countries including the rich and the poor. Profit Margin and the prices of the goods and services severely dropped and if the amount of revenue and taxes collected also had a devastating fall which had severe negative effect on the economy. The level of Unemployment rose in U.S. and it was depicted that around twenty percent of unemployment rate increased in U.S. whereas, in other countries the level of Unemployment rose to thirty three percent which was the highest ever increase in the rate of the unemployment process. All the cities around the world were suffering due to this depression and especially those cities or countries whose backbone was heavy industry, construction industries because this industry totally turned downed and halted in various countries. Due to the depression the agriculture sector was also effected as because the prices of the crop also fell to around sixty percent. Due to unemployment the primary sector was also affected, activities such as mining, logging and cash cropping was effected a lot. There were various causes for the depression in the year 1929. These comprised of the primary weaknesses and definite events that led to a major depression and the way in which the severe depression profused from country to country was simply devastating. According to the historians the main cause or the real reason behind the great depression was failure of the bank and the crash or the fall of the stock market. However, the various monetarist economist such as Milton Friedman, Peter Temin and Barry Eichengreen states that the major cause behind the depression was the inappropriate action considered or adopted by the US Federal Reserve and the limited supply of the money and the decision of Britain for returning of gold standard before the World War. The activity of business and the period of Boom and depression in the business and recession are considered or rather regarded as the normal activity for the business and are considered normal. However, what are t.
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The Great Depression The history of the United States economy has its roots in the European colonization of the 16th to 18th century. The independence of the thirteen colonies was established under the frontier, ingenuity and support from France and its allies. Since then, the economy of the United States has gone through a lot, for instance, the birth and evolution of the national debt which has expanded apparently without limits. Also, it is quite fascinating to point out the fact that the America’s economy grew to be the world’s leading economic superpower, in the 20th century, and it assumed the role of the greatest financial capital of the world (Fellows & Mike 39). However, in the years following the America’s Great Depression, the United States’ trade deficit has continued to escalate, with much of America’s massive debt is now being now controlled by China, and a transfer of power appears to be in progress. Basically, this was a colossal financial deterioration that started in the late 1929 that continued into early 1940s (Rothbard 420). The Great Depression, and even that’s now known as Black Thursday, was such a catastrophic time, not only in American, but also for most people across the entire world. As matter of fact, it was felt in a great deal of places ranging from North America to South America, and all the way to Europe and Japan. Also, cotton farmers and bankers felt the great impacts the depression. While most economists argue that there were several contributing factors to the Great Depression, it led to the most horrible economic crisis in the history of the economy of America. Analysis of the causes There are several causes of the Great Depression that are believed to have been the driving forces behind the worst economic situation in the America’s history. The crash of the United States stock market in 1929 was one of most commonly known primary factors that caused the Great Depression. For instance, the US experienced a tremendous surge in stock prices in 1920, but the Federal Reserve could not defend these prices by future earnings. However, in 1928 the Federal Reserve raised interest rates in order to slow rising stock prices. Nearly 2 months after the original crash in October, stockholders had lost over $40 billion dollars (Silverman 71). Although the stock market began to recover from some of its losses, by the end of the following year, it just was not enough and America truly entered what is called the Great Depression. The crash brought on a manifold of debates that are still active in today’s US economy ((Smith 76). Failure of banks was another cause of the Great depression. As a matter more than 9,000 banks failed in the 1930s because Bank deposits were uninsured, and thus as banks failed people simply lost their savings. Unfortunately, surviving banks stopped being as willing to create new loans because they were overly concerned about their uncertain future as well as their survival in the grueling eco ...
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ICT Role in 21st Century Education & its Challenges.pptx
AreebaZafar22
Explore the world of IT certification with CompTIA. Discover how the CompTIA Security+ Book SY0-701 can elevate your cybersecurity expertise and open doors to new career opportunities. This PDF provides essential insights into the CompTIA Security+ certification, guiding you through exam preparation and showcasing the benefits of becoming CompTIA-certified. Download now to embark on your journey to IT excellence with CompTIA.
ComPTIA Overview | Comptia Security+ Book SY0-701
ComPTIA Overview | Comptia Security+ Book SY0-701
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ICT role in 21st century education and it's challenges.
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ICT Role in 21st Century Education & its Challenges.pptx
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ComPTIA Overview | Comptia Security+ Book SY0-701
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Stock market crash
1.
It’s Causes and
Effects By Jeanine Brotherston Dr. Volpert: Mathematics of Finance The Stock Market Crash of 1929
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Some Basic Background
on the Stocks and the Economic Market
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Before The Crash
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Stock Exchange Average
Rise in Share Prices 1924-1928
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This Bubble was
bound to Burst!
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Thank You for
Your Attention
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