The Great Depression in America Essay -- essays research papers

The Great low was a huge economic downfall in North America and involved some other industrialized countries of the world. The notion began in 1929 and lasted for about ten years. Millions of people lost their jobs along with many businesses going bankrupt. The common misconception of the Great Depression is people think that the transport securities industry crash was the main cause for it. There were many causes for the Depression odds-on distribution of m oney during the 1920s was the main cause of the Depression. This unequal distribution happened on many different classes of people. The imbalance of funds is what created much(prenominal) an unst subject economy. The germinate market was doing much worse than people purview during this period. This lead to the biggest stock market crash in our history. The misdistribution of wealth and the stock market crash caused the economy to plummet (Modern).The stock market was big than ever in the 1920s. Prices reached levels t hat people never dreamed of. At one point when the market was roaring in September 1929 forty portion of stock market values were pure air. This meant that investors thought that the stock market would go up because it had been going up. By 1928 and 1929 the Federal take hold was dis arrangeed about the high level that the stock market had reached (Galbraith 116). The Federal Reserve feared that the stock market readiness burst suddenly. If this did happen investment might fall, parts of the stock market might not be able to pay back debts, and even worse recession might result (Galbraith 118). The Federal Reserve in 1928 tried to make borrowing money for stock speculation more difficult and very costly by raising interest rates. All of the options that the Reserve tried had unfavorable risks associated with them. umteen economists believed that the Federal Reserve was responsible for the recession. The stock market did crash on October 29 1929. The Federal Reserve tried to do to much to break down the recession and in return brought on the recession that they were trying to stanch (America). When the stock market crashed in October this twenty-four hour period was known as non-white Tuesday. On this day Americans saw their stocks lose a tenth of their value. The critical reason for why the stock market busted on this day are unknown (Delong 1). The stock market cras... ...t of 1935, which raised personal income taxes on the highest income levels (America).On December 8, 1941 the U.S. Senate issued a declaration of state of war on Japan. Germany declared war on the coupled States on December 11, 1941. Industrial factories were at first slow to convert into making military machinery. By 1942, 33 percent of the economy was devoted to the war effort (Modern). This gave society a sense of patriotism and devotion to ones country. Between 1941 and 1945 the United States spent about $250 million a day in order to defeat their enemies. Federal using up was more than $320 billion over that period. That was both times as much money as the federal giving medication had spent in its entire history up until that point. This government spending stimulated an industrial boom and stopped unemployment. By the end of the war in 1945, the farmers income had more than doubled. Corporate profits move up by 70 percent and the wages of the employees increased by over 50 percent. The most interesting statistic was that the earnings of the bottom fifth of workers go to 68 percent. The Great Depression soon came to an end being move away by the war (America).