Causes of The Great Depression Essay -- essays research papers

The Great Depression It is said that the cause of the catastrophic stock merchandise crash known as the great depression was due for the most part to uncontrolled political and industrial systems other(a)wise known as capitalism. However, the timeline rent-in up to the Great Depression proves that many other factors played a role in the stock groceryplace crash that occurred in the decennary of the 1930s. So lets take a look at rather four, factors contribute to the great depression that we will further discuss in the undermentioned paragraphs. Four of the main causes that led up to the great depression were unsymmetrical distribution of wealth, uncontrolled political and industrial systems, high tariffs and war debts. bullion was distributed mostly between the rich and the middle-class, in the United States, and between the U.S. and Europe. This instability of wealth created an unstable economy this type of the economy eventually lead up to large market crashes . These market crashes, caused the American economy to be overturned. The total income in the United States rose from $74.3 zillion in 1923 to $89 billion in 1929 this rise in the economy was due to the Coolidge Prosperity(Business and patience was flourishing and big business became bigger so the stock market went up greatly) even after this boost in the stock market the money wasnt making its way around equally because most farmers were still poor. United States maintained high 1.tariffs on goods imported from other countries, at the same time that it was making foreign loans and trying to exportation products. This combination could not be sustained If other nations could not contend their goods in the United States, they could not make enough money to grease ones palms American products or repay American loan... ... June1939 7.2 10.4 + 7.9 17.21940 6.9 9.9 1941 7.7 12.1 1942 10.3 24.8 1943 13.7 44.8 1944 21.7 45 .3 1945 21.3 43.7As you can see, Roosevelt began to induce the people out of the depression and that resulted in some astonishing evolution numbers. (Roosevelts average growth of 5.2 percent during the Great Depression is even high than Reagans 3.7 percent growth during his Seven Fat Years ) When 1936 saw a phenomenal record of 14 percent growth, Roosevelt eased back on the deficit spending, overly worried about balancing the budget. Between 1940 and 1945, the branch Deficit Product nearly doubled in size, from $832 billion to $1,559 billion in constant 87 dollars. And this occurred as deficit spending soared, to levels Keynes had preceding and unsuccessfully recommended to Roosevelt