Depression Cause Effect Essay

Depression Cause Effect Essay-3
It destroyed the economy, crashed the market, caused the high rate of unemployment. During Depression stock markets crashed, which affected all fields of economy, money was depreciated, prices increased, banks, other enterprises, and companies began to go bankrupt.Due to actions and events held by the government in order to be involved in the economic system, and their effects, the country’s economy was destroyed during the short period of time.Thousands of small farmers took agricultural equipment from the governments.

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Only the last resort could become a reason for this decision, newspapers published the names of people who got the welfare payments, and it was considered as a disgrace.

After facing real starving times, men started to sign up for government social payments that were a painful decision for the majority of the people.

Interesting that the Gold Standard abandonment together with the ensuing monetary expansion made the recovery possible. It included both huge changes in economic policy and extreme suffering of the people.

The stock market crash that happened in 1929 was not the only cause of the Depression, it became a kind of acceleration of global economic crisis, it started irreversible processes.

By the year 1933, almost half of the American banks failed, and the unemployment rate was high - 15 million people didn’t have jobs.

The stock market failure was the official beginning of the Great Depression.

The stock market failure affected all Americans as the customers: they stopped getting the salary, they stopped spending money, buying goods as much as they did before because they didn’t have this opportunity anymore.

These trade issues influenced all the companies, reduced sales, income.

The Great Depression had its start during the Herbert Hoover, American people blamed their President for everything that happened.

They didn’t listen to his positive public speech, instead of it, they tried to spread some humiliating jokes, metaphors.


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