The Great Depression

-


The Great Depression was the worst economic downturn in the history of the industrialized world, lasting from the stock market crash of 1929 to 1939. It all started after the October 1929 stock market crash, which threw Wall Street into a hysteria and wiped out millions of investors. Consumer spending and investment fell sharply during the next few years, resulting in major drops in industrial output and employment as failing businesses laid off workers. By 1933, when the Great Depression had reached its worst, 15 million Americans had lost their jobs, and nearly half of the country's banks had failed. Many people think that the Great Depression started on Tuesday, October 29, but economists think Black Tuesday was just one of the causes.



Causes:-

The stock market, based on the New York Stock Exchange on Wall Street in New York City, was a center of foolish gambling, with everyone from billionaires to cooks and janitors investing their savings. As a result, the stock market saw fast growth, peaking in August 1929.

By that time, manufacturing had slowed and unemployment had increased, resulting in stock values that were far higher than their true value. Also, wages were low at the time, consumer debt was wide spread, the agriculture sector of the economy was suffering from dryness and declining food prices, and banks had an excess of large loans that couldn't be repaid.

During the summer of 1929, the American economy entered a minor crisis as consumer spending slowed and unsold goods began to pile up, slowing factory activity. Despite this, stock prices continued to increase, reaching extreme heights by the fall of that year that could not be justified by predicted future earnings.

Roosevelt elected:-

Hoover, a Republican who had previously served as the United States Secretary of Commerce, believed that the government should not participate directly in the economy and that it had no obligation to generate jobs or offer economic aid to its people.

With the country in the depths of the Great Depression in 1932, Democrat Franklin D. Roosevelt scored a stunning victory in the presidential election.Roosevelt acted quickly to address the country's economic problems, initially proposing a four-day "bank vacation" during which all banks would close in order for Congress to adopt reforms in order and reopen those banks considered to be sound. He also began speaking directly to the people on the radio in a series of speeches, and these so-called "fireside chats" helped to restore popular trust.

Roosevelt's law took effect to stabilize industrial and agricultural production, generate jobs, and accelerate recovery during his first 100 days in office.

Recovery:-

Democrat Franklin has created 42 new agencies. They were created with the intention of creating jobs, allowing for worker rights, and providing unemployment insurance. Many of these programs are still in use today. They contribute to the economy's stability and the avoidance of another depression.

World War 2 played only a modest role in the recovery of the U.S. economy,U.S. had largely recovered before military spending accelerated noticeably. Role of fiscal expansion in generating recovery varied substantially across countries. The U.S., did not use fiscal expansion to a noticeable extent early in its recovery. The war played a role in completing the return to full employment in the United States.



Comments

Post a Comment

Popular posts from this blog

The civil rights movement

-
Image
 The civil rights movement was a struggle for social justice that mostly took place in the 1950s and 1960s in the United States, with the goal of granting Black Americans equal legal rights. Although the Civil War ended slavery, it did not stop prejudice against African-Americans, who continued to suffer the devastating impacts of racism, particularly in the South. By the mid-nineteenth century, Black Americans had had their fill of bigotry and brutality. They, together with a large number of white Americans, rallied and began a two-decade-long campaign for equality. World war II and civil rights Most Black people worked as low-wage farmers, industrial laborers, domestics, or servants prior to World War II. War-related labor was thriving in the early 1940s, but most Black Americans were denied the better-paying positions. They were also persuaded not to enlist in the military. On June 25, 1941, President Franklin D. Roosevelt signed Executive Order 8802 in response to thousands of ...
Read more

JFK assassination

-
Image
President John F. Kennedy was assassinated in a motorcade past Dealey Plaza in downtown Dallas, Texas, shortly after noon on November 22, 1963. President John F. Kennedy and his political advisers were planning for the next presidential campaign by the fall of 1963. Despite the fact that President Kennedy had not publicly announced his campaign, it was clear that he would run, and he seemed optimistic about his chances of re-election. Investigations:- In 1963–1964, the Warren Commission conducted an investigation into what had occurred. It took ten months to complete. The commission determined that Oswald was the only criminal, and that he fired three shots from a warehouse window on Dealey Plaza's corner. There was no one else involved. Jack Ruby, the assassin who killed Oswald, was likewise alleged to have acted alone. In 1979, the United States House Select Committee on Assassinations (HSCA) conducted another investigation. They discovered that President John F. Kennedy was most...
Read more

The fall of Berlin War

-
Image
  An introduction about Berlin War:-     On August 13, 1961, the Communist government of the German Democratic Republic (GDR, or East Germany) began to build a barbed wire and concrete “Antifascistischer Schutz wall,” or “antifascist bulwark,” between East and West Berlin. The official purpose of this Berlin Wall was to keep so-called Western “fascists” from entering East Germany and undermining the socialist state, but it primarily served the objective of stemming mass defections from East to West. The Berlin Wall stood until November 9, 1989, when the head of the East German Communist Party announced that citizens of the GDR could cross the border whenever they pleased. That night, ecstatic crowds swarmed the wall. Some crossed freely into West Berlin, while others brought hammers and pick and began to chip away at the wall itself. To this day, the Berlin Wall remains one of the most powerful and enduring symbols of the Cold War. The Berlin Wall: The Partitioning of Ber...
Read more