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The Great Depression: Stock Market Crash in 1929 (Essay Sample)


cause and effect essay
Need 7 causes and 7 effects

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The Great Depression
The great depression began after the stock market crash 1929. There was the decline in consumer expenditure and investments in dropped in most countries; this resulted in decreasing in industrial productivity, and employment failed in a majority of the companies (Robbins,& Lionel Pg 10). It was a terrible economic turn down in the history of industrialization. The essay discusses the effects the causes and the consequences of significant depression during manufacturing.
Causes of a great depression.
There are numerous causes of the great depression. There was the colossal failure in a bank where bank deposits indemnified, and many people lost their savings in the bank as a result. The banks which survived from these depressions were not willing to generate new loans to their customers (Bernanke,& Ben Pg 70). This situation led to declining of expenditures as time went by. The banking systems were not dependent; as the economy began dropping the banks lacked the capability to support those who needed their savings and assets (Wicker, & Elms Pg 8). Due to the failure of these banking systems, the depression became deeper and deeper improper fiscal policies trailed during this period.
Purchasing reduced in the country. With the occurrence of the stock market crash people from respective classes in the society seized purchasing products. As a reduction, there was lessening in the number of goods manufactured and the workforce in many companies reduced.
Many people lost their lost their employments since there were unable to pay for the products they had bought for in the form of installments and lead to repossession of properties. Therefore, there was the accumulation of inventories. The rate of unemployment rose, and the rate of expenditure of the economy decline and this helped ease the economic problem.
There was the increase in tariffs and war debts. It was as a result of the introduction of the American economic policy by Europe. As a majority of the business, the government introduced tariffs to protect companies in America. There was an imposition of high taxes on Imports from foreign countries. As a result of the imposition of these taxes and high taxation, trade declined between America and other foreign countries. Also, many states hit back economically not for America.
An Although drought was an indirect cause of the great depression many were unable to pay the taxes imposed on them and the debts they owed one another. Many had to sell their properties, for example, farming land though it was not for personal gains. The decline in the stock market resulted in the migration of, many investors into the currency market. At this particular occasion, there was a maintenance of the value of the dollar currency by the gold customary of the US federal (Robbins, & Lionel Pg 19). Many traders began trading in dollars, and this resulted to a lope on the dollar.
Inequality in wealth and income in the amount earned by the individuals. It was because the economy was producing more than what ...
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