Though collectivisation may have had short term boosts to the economy but the effects of collectivisation were disastrous. For that the harvest of 1933 was nine million tons less than that of 1926 and the number of pigs dropped by 65%. These are the results of the peasants rebelling against the soviets forced collectivization. These peasant rebellions were damaging to the economy as its effects emanates to the city
With significantly reduced wealth, spending decline, banks failed and on top of this drought conditions contributed to a lack of good crops. The Great Depression was the result of an unlucky combination of factors, but mainly the use of margin is to blame (Doc . Worldwide, there was increased unemployment, decreased government revenue, and a drop in international trade. At the height of the Great Depression in 1933, more than a quarter of the US labor force was unemployed. Some countries saw a change in leadership as a result of the economic turmoil.
American businesses lost vast amounts of money and to repay the debt they asked German banks to repay the money they had borrowed. Peoples vote turned to leaders who blamed reasons for the Depression. The Nazi's The Weimar Republic was not to blame for the huge economics problems Germany were in at the time. Though to stop hyperinflation reoccurring the Chancellors raised taxes, cut wages and reduced unemployment
Women were another vulnerable group because they were always paid at a lower rate than men. There was no safety net for people who fell into poverty other than resorting to the ‘workhouse’ which had been established to deal with cases of extreme poverty in Trade unions had little power as the Taff Vale Incident of 1901 showed and Friendly Societies could only provide a limited amount of help. Attitudes to poverty in the early 20th century were quite unsympathetic many politicians from both the Liberal and Conservative party felt that poverty came from personal laziness. Both parties had an attitude of “laissez-faire” i.e. non interference from the government.
The group that suffered a great deal - proportional to their income - was the middle class. Their hard earned savings disappeared overnight. They did not have the wealth or land to fall back on as the rich had. Many middle class families had to sell family heirlooms to survive. It is not surprising that many of those middle class, who suffered in 1923, were to turn to Hitler and the Nazi Party.
Other changes Stalin made were to increase production in agriculture by the collectivization policy. Document 4 shows how he planned to do this by joining small peasant farms together and eliminate the Kulaks who were wealthy farmers. During the First Five Year Plan, livestock went from 33 to 16 million. During the Second Five-Year Plan, livestock went up slightly from 16 million to about 17 million. Wheat production yo-yoed from 25 to 18 million between the years 1928-1937.
What Ended The Great Depression? There are many theories as to what ended the Great Depression. This may be one of the most important questions asked in America’s economic history. The Great Depression of the 1930s was devastating to the American people. Times were so difficult that many former middle-class Americans struggled to feed their families, keep their homes and pay their debts.
Which Wall Street did not have in place or this would have never happen. Their virtues are money, how much they can get no matter what it costs others in the long run. Proof of this is the bail out that the taxpayers paid for. And that the government had to step in to or the economy would have been even worst. (Still think we are in a Depression not a rescission) Also the CEO of Enron for conspiracy and multiple counts of fraud is one example of dishonesty, fraud, disregarding one professional responsibility by given themselves Astronomical salaries and enormous benefits this reduces profits of the stockholders, who own the company.
Few saw this devastation coming. The Mortgage Foreclosure Crisis was arguably the most significant for the economy since the Great Depression. It forced millions to lose everything they have and have to live in lower standards than ever before. Criminal acts have skyrocketed due to desperate Americans having nowhere else to turn to but illegal lifestyles. The Mortgage Foreclosure Crisis has set back our economy and the lifestyle of the average American has changed astonishingly
The cause however, has its controversy. Most Americans believe that the stock market crash was the cause of the Great Depression, which is untrue. “The stock market crash did not so much cause the Depression, then, as help trigger a chain of events that exposed long-standing weakness in the American economy.” (B, 661; CD) The stock market crash cause events that occurred in the Great Depression which made it more of a hardship and showed the first sign of crisis, although the Great Depression was inevitable at the end of the 1920’s. In reality the depression was caused by lack of diversification, maldistribution of wealth, declining exports and unstable international debt structure (B, 660). The great depression and the dust bowl brought a new myth to the 1930’s which was the misconception of self-blame and personal responsibility which evolved from the earlier self-made man myth.