Read "The Crash and its Aftermath," pp 296-300, and post an answer to the following question:
What were the causes and effects of the Great Depression? Do you think we are in a similar situation today? Why or why not?
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The Great Depression was cause by a lack of balance in the economy, high protective tariffs, 1/3 the poulation in or near poverty, banks granting risky loans, and deeply in-debt consumers.
The effects of the Great Depression were thousands of closed banks and businesses, tens of millions of people loosing their jobs, homes were lost, makeshift shanties and villages were made, and the whole depression just showed how much every industry relies on eachother.
Today, we have lots of job losses, bank and business failure, and home reposession. This is just the same as back then, only obviously not nearly as bad.
Today, our situation is a whole lot worse. april fools! Okay, so we aren't as bad but we are similar.
There were several causes of the great depression. First, on October 29, 1929, the stock market crashed. As a result, people around the United States were spending less. This caused manufacturers to produce less and fire people, reducing the amount of jobs. As the amount of Jobs decreased, the economy became more and more unstable. Many banks could not hold up in this unstable economy, and more than 9000 banks failed.
Looks like the good ol' April fools virus is going around. Well the joke's on you guys becuase I have a mac!
The causes of the crash were easily outlined. Failing banks, farmers who couldn't earn much money, the stock market crash, industries failing, it all halted the money flow and made all of the different parts of life collpase, causing a domino effect.
Today we're in a similar situation, with banks failing, businesses laying off workers, loans toppling over, the situation might even be worse. The simulous package also hasn't been proven to do much good except fuel the pockets of CEOs (I believe). This might just be a worse depression then ever.
Quote: "Looks like the good ol' April fools virus is going around. Well the joke's on you guys becuase I have a mac!"
I lol'd
The gret depression was caused for many reasons. Several were thelack of balance in th economy situation, high protctive tarrifs, a greatt amount of popultion had no money, banks were giving unstable or uncntrolled loans. The effects of the Great depression had a huge impact on America. Many buisnesses could not afford to stay in the competition, people were losing their job left and right, nobody could afford a habbitat for living.
This is very simular to today. So much of our population is jobless, industies a crshing, etc.
There were many of things that caused the great depression. The stock market crash I n the late 20s was won of the greatest causes but was not the only reason. Ever since
WWI many farmers were in trouble. Also banks gave loans to people who did not fit the criteria to pay them back. Most of the events caused effects in our country. Many of the people who took out loans that could repay them had to give up their house and since many of the banks were not being paid back a lot of them were forced to closed down. This also made many of the wealthy go broke in a short amount of time. One of the most devastating effects on our country was not that the unemployment rate shot up to 25% mainly because many businesses were failing.
This is a lot like in today economic crisis. In the last 3 years we have seen many of the same things happen as the causes of the GD. Such as having banks fail, stock market crashing, job loss, and reposition. We may yet see another Great Depression in our life to time. So buckle up and get ready for the ride cuz its gona suck!!!
The Great Depression was a worldwide "economic downturn" in 1929. it was the largest and most important economic depression. The Great Depression was used as an example of how far the economy can fall worldwide. the cause of the Great Depression was by a sudden, total collapse in the stock market. people started to spend less which then caused factory's to to make less supplies and had to fire people because they went making enough supplies.
On October 24, 1929, The Great Depression became "official". Earlier in 1929, coorperations set unreasonably high stock prices that did not reflect their earnings and inevitably, the worth of stock rose, leading to an uncomfortable situation. Above all else, the lack of circular movement in the economy, caused by factories making products and buyers not being able to purchase, compelled the "Great Depression". Post "Black Thursday", funds dried up, job percentage dropped, and in 1933 many busineses filed for bankruptcy along with the 5,000 banks. The Great Depression ended soon after the start of WWII because of the demand put on products, which revived the economy.
The recession in 1929 and the recession occurring today are both placed in the same category of America's problems. The worker percentage, the repossesion of personal possesions, and the failure of local and national businesses have both occurred in the past and present, pushing us toward the fact that this "depression" we are going through currently could be almost identical to one that occurred 80 years ago.
The Great Depression was cause by the fiancial practices were unsound and a lack of balance in economy. Even the stock market crash in 1929 did not cause the Depression,but it revealed several problems.
The Great Depression showed dramatically how all parts of an industrial society depend on one another. Many business cut producion or closed down. Thousands of workers lost their jobs. There were many homeless people drifting from place to place looking for jobs.Many people unable to meet mortgage payment and forced to give up their homes. Those with saving tried to withdraw them from banks,which made hundreds of them simply closed their doors.
Our situation today is not that worse. But close to it. Today, it is hard to find a good job. Many restaurant closed down. Also some companies fire people. The percent of jobless people increase.
although our situation is not nearly as bad today as it was then, it is getting worse. If we don't do something about the recession soon, we could enter another depression.
A multitude of factors led to the stock market crash of 1929. Stock prices became unrealistically high, and people got into the habit of buying stocks on margin. Many Americans, especially farmers, were already living in poverty. There was a lack of balance in the American economy. On “Black Tuesday”, the stock market crashed. The average price of stocks dropped by forty percent in three weeks. The crash marked the start of the Great Depression. Funds for investments dried up, and businesses started to close down, causing thousands of workers to lose their jobs. Many banks, unable to give people their savings, closed down. Those who had lost their jobs were often forced to give up their homes.
The Great Depression bears a resemblance to the recession happening right now. As in the nineteen thirties, thousands of businesses are closing down, people are losing their jobs, the prices of stocks are falling, and huge sums of money are disappearing over night.
There were numerous causes of the Great Depression, which began in 1929. Farmers, even before the Depression began had been in trouble since the end of World War I, there was no longer significant demand for thier crops, and many farmers had gone bankrupt. When the Stock Market crashed in 1929, it revealed the unsound finicial practices that had existed within America's economy. Practices like buying and selling on margin, buying on installment, and excessive stock speculation by banks, left many in debt, and many saw thier money disappear. Also increased industrial production had left an excess of goods that did not sell on the market, so many factory workers were dealt lower wages. Today, I think our economic situation has similiraties with the Great Depression. Many people and corporations have practiced unsound finicial practices, and relied heavily on credit, which comes back to bite them when they cannot pay off heavy debts. Also, with a lack of money in the consumers' hands, industrial corportations have had trouble making enough profits to pay all thier workers. Although, since we are not as much of an agricultural nation, the farmers struggles of The Depression are unique to that time.
There were many different causes to the Great Depression. Unrealistically high stock prices, buying on margin, granting risky loans, and the installment plan were all causes of the Depression. Although all these were contributing causes for the Depression, the most important of all was a lack of balance in the economy. Production kept going up while salaries did not, so people were not able to buy necessities. When production rises while the demand falls, business owners have to raise their prices to compensate for their losses. Some effects of the Depression are that business cut down on production or closed, many people became homeless, almost 5,000 banks had closed, and 13 million people were without work. I think we are in a somewhat similar situation today with all of the businesses that are declaring bankruptcy. We are also experiencing a stock market crash, just like during the Great Depression.
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