Cause Of The Great Depression
Section 3
In the 1930’s there was a sudden drop of the economy, this was called the Great Depression. This was a time of mass unemployment. The people in america had though life of living in camps similar to refugee camps and doing anything for money. The real cause of the Great Depression is unknown, but the most popular examples are the banking system, the economy and the federal house.
First, there was a weak banking system. When the stock market finally crashed in October 29th 1929 $14 billion was lost. This caused an uproar of citizens rushing to the nearest bank to withdraw all their money this was called a “bank run”. An example of a bank run was portrayed in the very popular movie “Mary poppins”. Banks back in later 1920s relied …show more content…
The government did not rescue the banks and not putting money to raise the economy from the deflation period. The government blamed the first world war on the fall. The war did play the part on owing debts to other countries. Germany borrowed money from america to play France and England while France and England payed america through germany's reparations. This shut down the world trading. America responded by making new laws. Also certain republican president named Herbert Hoover did not believe that the government shouldn’t directly intervene with the economy. This decision lead to the government creating temporary jobs for the unemployed, but did not support the economy because the government had to pay for the income. The effect of this is that european countries had their own laws which resulted in less trade that ultimately meant fewer jobs. People had to work on the streets looking for jobs in bars. Most common jobs were to work in the fields for the the farms had a depression of their own due to the collapse of the food prices. Finally, Because of the poor decisions made by hoove, the next election was won by a democrat named Franklin D. Roosevelt. Franklin took the depression in his owns hands and ordered the banks to take a holiday restoring the public's optimism.
In conclusion, although the cause of The Great Depression is unknown the weak banking system, deflation and the government all had their roles. The banks all had bank runs that turned into loads of debts and the credit freeze. Then there was the deflation that ran down companies. The government also did not help preventing the downfall of the banks. The government also closed down world trade which led to more
In the 1930’s there was a sudden drop of the economy, this was called the Great Depression. This was a time of mass unemployment. The people in america had though life of living in camps similar to refugee camps and doing anything for money. The real cause of the Great Depression is unknown, but the most popular examples are the banking system, the economy and the federal house.
First, there was a weak banking system. When the stock market finally crashed in October 29th 1929 $14 billion was lost. This caused an uproar of citizens rushing to the nearest bank to withdraw all their money this was called a “bank run”. An example of a bank run was portrayed in the very popular movie “Mary poppins”. Banks back in later 1920s relied …show more content…
The government did not rescue the banks and not putting money to raise the economy from the deflation period. The government blamed the first world war on the fall. The war did play the part on owing debts to other countries. Germany borrowed money from america to play France and England while France and England payed america through germany's reparations. This shut down the world trading. America responded by making new laws. Also certain republican president named Herbert Hoover did not believe that the government shouldn’t directly intervene with the economy. This decision lead to the government creating temporary jobs for the unemployed, but did not support the economy because the government had to pay for the income. The effect of this is that european countries had their own laws which resulted in less trade that ultimately meant fewer jobs. People had to work on the streets looking for jobs in bars. Most common jobs were to work in the fields for the the farms had a depression of their own due to the collapse of the food prices. Finally, Because of the poor decisions made by hoove, the next election was won by a democrat named Franklin D. Roosevelt. Franklin took the depression in his owns hands and ordered the banks to take a holiday restoring the public's optimism.
In conclusion, although the cause of The Great Depression is unknown the weak banking system, deflation and the government all had their roles. The banks all had bank runs that turned into loads of debts and the credit freeze. Then there was the deflation that ran down companies. The government also did not help preventing the downfall of the banks. The government also closed down world trade which led to more