Depression

Josh d makeyDepression essay 12/2/12history The massive depression was one of the hardest times that America approach end-to-end its history. Billions of dollars were lost, unemployment skyrocketed, and stocks plummeted. This was not a spontaneous occurrence as there were some factors that led to this great frugal d have gotturn. As many people were quick to point fingers to president Hoover, the citation of the line of work was a combination of poor decisions, and the great put on of our capitalist economy. The documented start of the depression began on October 29, 1929, instantly known as Black tuesday, with the great stock securities application crash. During 1928 and 1929 the stock market was booming. Investors were buying stocks on a 10% margin and paying the rest on a touch from banks in order to sell the stock at a higher price. For a while this worked until confidence in the earning faltered in october of 1929. At this time banks began demanding currency from the loans in which many could not pay. The stock market spiraled downward by approximately 14 billion dollars (50%). The Federal reserve board made rattling poor decisions contri besidesing to the great depression in 1930 and 1931 when they curtailed the tote up of notes in circulation and raised interest rates.

This made confidence much more difficult for the public to secure and did the opposite of what the economy needed. If the course of action was the other way and the money supply was expanded, debtors would have been able to pay their creditors. An ill- advised duty in 1930 also know as the Hawley- Smoot Tarriff, also contri provideded to the economic decline. This ra ised obligations on 75 agricultural goods a! nd 925 manufactured products. This tariff was thought to give protection to american industry but instead angered foreign governments. They retaliated by raising their own tariffs in order to keep out american goods and with this world-wide alternate dropped significantly. A final cause of the great depression was the poor...If you ask to get a full essay, order it on our website: OrderEssay.net

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