Essay Questions For The Great DepressionGreat Depression - Wikipedia
The Great Depression was a severe worldwide economic depression that took place mostly during the 1930s, beginning in the United States.The timing of the Great Depression varied across nations; in most countries it started in 1929 and lasted until the late-1930s.
Essay Questions For The Great Depression
After world war ii the united states played this role. Created in roosevelts first hundred days, they sought to promote recovery by propping up prices. The dow jones industrial average hit its peak of 381 on september 3, up from 300 at the start of the year.
There was no tradition (as there is today) of continuous, modest inflation. It fostered global trade by keeping its markets open, promoted expansion by making overseas investments, and prevented financial crises with emergency loans. But that is what world leaders attempted because it was all they knew and it had worked.
Friedman and schwartz argue that it was this drop in the money supply that strangled the economy. Tighter federal reserve policy in 1928 and early 1929intended to check stock market speculationmay have helped trigger the economic downturn. The economys output of goods and services (gross national product) declined 30 percent between 19recovered to the 1929 level only in 1939.
The truth is that, until the summer or early fall of 1930, almost everyone expected the economy to recover, just as it had in 1921. Many economists now believe that the new deal, apart from its gold policy, probably had little impact on economic activity. Since deposits were not insured then, the bank failures wiped out savings and shrank the money supply.
The 1920-21 downturn (when industrial production fell 25 percent) had preceded the prosperous twenties. Treasury securities and thereby injecting new funds into banks and the economy). The discount rate (the rate at which the federal reserve lends to commercial banks) fell from 6 percent in october 1929 to 2.
True, hoovers commitment to a balanced budgetthe orthodoxy of the dayprecluded big new spending programs. This convertibility put an upper limit on the amount of paper currency governments could print, and thus prevented inflation. The drop may have been a backlash to the rise of installment lending (for cars, furniture, and appliances) in the twenties. But it is not true that hoover and the federal reserve stood idly by and did nothing as the depression worsened. By years end the dow jones industrial average had actually rebounded to 248 (down 17 percent from the beginning of 1929).
Great Depression, by Robert J. Samuelson: The Concise ...
T he Great Depression of the thirties remains the most important economic event in American history. It caused enormous hardship for tens of millions of people and the failure of a large fraction of the nation's banks, businesses, and farms.
Essay Questions For The Great DepressionThe Great Depression - 42explore2.com
Easier - The 'Great Depression' was a period in United States History when business was poor and many people were out of work.
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THE UNIVERSITY OF THE STATE OF NEW YORK GRADE 8
But that is what world leaders attempted because it was all they knew and it had worked. The nra allowed companies in the same industry to set wages, prices, and working hours in an effort to check destructive competition. With the gold standard gone, governments had more freedom to stimulate their economies with an expansion of money and credit. At the heart of the early new deal were the national recovery administration (nra) and the agriculture adjustment act (aaa). By 1933, the democrats had the presidency and, with huge margins, congress (310-117 in the house, and 60-35 in the senate).
One exception to the hands-off attitude was the federal reserve, created in 1913. The drop may have been a backlash to the rise of installment lending (for cars, furniture, and appliances) in the twenties. The breakdown started with world war i and ended in the thirties with the collapse of the gold standard. The depression is best understood as the final chapter of the breakdown of the worldwide economic order. People may have stopped making new purchases to reduce the risk of losing things they already had bought on credit.
The aaa tried to eliminate agricultural surpluses (pigs were slaughtered, crops destroyed) and paid farmers not to plant. But because the gold standard caused many governments to make similar errors, the effects were worldwide, as kindleberger contends. Samuelson is a journalist who writes a column on economic affairs for the crash and its aftermath, a history of securities markets in the united states, 1929-1933. Rising bad debts prompted banks to restrict new loans and sell financial assets, usually bonds. It was charged with the responsibility for providing emergency funds to banks so that surprise withdrawals would not trigger bank runs and a financial panic. Demand for these products (rubber, cocoa, coffee) dropped, and prices fell. Why could no one stop this spiral? In the united states there were waves of bank failures in 19friedman and schwartz maintain that the federal reserve could have prevented them by lending directly to weak banks and by aggressive open market operations (that is, by buying u. This is probably true, as long as another depression means a crude repetition of the thirties. The money supply (cash in circulation plus checking and time deposits at banks) declined only slightly in the next year. Two-fifths of world trade was in farm products, another fifth in other raw materials.Part A Short-Answer Questions Directions: Analyze the documents and answer the short-answer questions that follow each document in the space provided. Document 1 1 According to this graph, how did the stock market crash of 1929 affect workers?