The Great Depression

Powerful Essays
Causes and effects of the Great Depression in The United States

Name: Qicai Li
Course: ECO 258
Professor: Dr. Yasser Fahmy
Date: Dec. 8, 2011
Word count: 2050

Abstract This paper discusses and analyzes the causes and effects of the Great Depression which happened in the United States during 1929 to late 1930s or early 1940s. The causes of the Great Depression are several, for example, the drastic decline in the quantity of money in industrial economies and the drops of the price on agricultural products. Since the Great Depression is the longest, most widespread and worst depression in the 20th century, the effects are tremendous. Like economic nationalism formed because of the Great Depression, and even the burst of WWII is related to it. Finally, the paper would come up with recommendations on how to avoid this kind of depression in the future.

Table of Contents
Page number 1. Introduction--------------------------------------------------------------------1

2. The causes of the Great Depression in U.S. * Price drop in agricultural products----------------------------------2&3 * Decrease in supply of money--------------------------------------------4 * Gold standard----------------------------------------------------------5&6 * Bank failure----------------------------------------------------------------7

3. Effects on the U.S.--------------------------------------------------------8&9

4. Conclusion--------------------------------------------------------------------10

5. References--------------------------------------------------------------------11

6. Appendix----------------------------------------------------------------------12

The Great Depression is a global economic depression which began on 1929, and it lasted until late 1930s or early 1940s. The Great Depression originated in the U.S., on September 4, 1929, the stock prices started decline around this period.

References: Swanson, Joseph and Williamson, Samuel. 1972. "Estimates of national product and income for the United States economy, 1919–1941". Explorations in Economic History 10: 53–73. Smiley, Gene. 2010. “THE U.S. Economy in the 1920s”. (accessed February 1, 2010) Hamilton, James D Friedman, Milton and Heller, Walter W. 1969. Monetary vs. Fiscal Policy:  A Dialogue, W.W. Norton & Company, Inc., pp. 79-80. Blanchard, Olivier; Illing, Gerhard, Makroökonomie, Studium, Pearson, 2009, ISBN 978-3827373632, p. 696, 697 Fahmy, Yasser

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