Essay On Why Did America Need The Great Depression

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The Great Depression: Did America Need it? Dawood Nadeem CHA3U1 Aside from the Civil War, the Great Depression was the gravest crisis in American history. Just as in the Civil War, the United States appeared—at least at the start of the 1930s—to be falling apart. But for all the turbulence and the panic, the ultimate effects of the Great Depression were less reassuring than revolutionary. I feel that the great depression was needed to shape the new Republic. The Great Depression has shaped America in many different ways, both positive and negative ways. America is difficult to imagine without the effects of the depression and the series of chain events it triggered, the Depression was essentially exactly what a new independent country needed. The Great Depression was unexpected, yet inevitable. There are several reasons why America needed the Great Depression to solidify their foundation. There are several reasons why the worst economic depression in the history of the US occurred. There is not one specific cause but many small problems combining to have an effect as great as the depression. One cause was the Stock Market crash of 1929. Stock’s had dropped due to the time period before, known as the “Roaring Twenties” due to WW1, many people had an abundance of wealth which…show more content…
After the massive stock market crash, the public became wary of spending money and began to reduce expenditure. A decrease in goods purchased caused a decrease in production making thousands lose their jobs, raising the unemployment rate to 25%. In an effort to reduce the damage that had been done, the American Government decided to place a heavy import tax which was designed to protect American companies. This tax instead reduced trade between America and Europe drastically, this tax was called the Smoot-Hawley
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