Essays About The Government Programs For Great Depression

The Great Depression was a period of unprecedented decline in economic activity.It is generally agreed to have occurred between 19.Therefore, the unemployed dramatically reduced their spending.

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Furthermore, they pointed to the Soviet Union as a country which was able to overcome the great depression through state-sponsored economic planning.

The stock market crash of October 1929, was certainly a factor which precipitated events.

Although parts of the economy had begun to recover by 1936, high unemployment persisted until the Second World War.

During September and October, a few firms posted disappointing results causing share prices to fall.

Output fell, unemployment rose causing a negative multiplier effect.

In the 1930s, the unemployment received little relief beyond the soup kitchen.Many agree, that it was this failure of the banking system which was the most powerful cause of economic depression.As banks went bankrupt, consumer spending and investment fell dramatically.Share prices would fall even more in 1932 as the depression deepened.By 1932, The stock market fell 89% from its September 1929 peak.In particular, they point to the decision to inflate the US economy to try and help the UK remain on the Gold standard at a rate which was too high.They argue after this unsustainable credit boom a recession became inevitable.It was at a level not seen since the nineteenth century.In the first 10 months of 1930 alone, 744 US banks went bankrupt and savers lost their savings.The Austrian school doesn't accept the Friedman analysis that falling money supply was the main problem.They argue it was the loss of confidence in the banking system which caused the most damage.

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