Known also as Black Tuesday, October 29th left stockholders shattered with recorded losses reaching $40 billion dollars (Kelly, n.d.). Many banks and financial institutions began collapsing which led to irretrievable, uninsured deposits and savings. Fearing further loss, people began spending less which led to a decrease in production and an increase in unemployment. As companies began to fail, the government devised the Smoot-Hawley Tariff in order to protect American businesses. The Tariff placed high taxes on imports leading to a decline in international trade.
They could also start up their industries again. This could only happen with loans from America. In October 1929, the price of shares on the ‘Wall Street Stock Exchange’ collapsed and many Americans and American businesses went bankrupt. Now at this time, America was still loaning Germany some money but as they became bankrupt, so did Germany because the USA had pulled back their loans to Germany and expected Germany to also pay interest. Germany then fell into a deep economic depression.
Frederick William shared this view and was unwilling to potentially cause a war with such a powerful state. This caused the Frankfurt Parliament to fail because Prussia did not grasp the opportunity to unite and neither did the King, therefore Germany remained divided. Although he desired power, William IV was not willing to put himself and Prussia under control of the Frankfurt Parliament as he distrusted ‘the gentlemen of Frankfurt’. This meant that the Parliament had no real leader, and so lost support because people distrusted the parliament as an influential figure stated he would not be associated with them. This aided in causing the failure of the Parliament because with no real leader, no one could influence the masses or help to make decisions.
It did not only affect Americans, but also the whole world. The Great Depression was caused by the crash of the stock market or the lack of real investment opportunities in the 1920’s, product innovation that caused less labor, President Roosevelt believed that it was caused by the structural problems and doubted simulative spending will solve the problem, and some argued it was caused by the shift toward modern employment relation that was made by the Great War. A Depression in the economy can start by raising taxes and dismissing government’s employees and both of these actions can start a depression and both of these were done by the government in 1929. Once this is done, it will have a chain reaction where it will get to the point where the economy will fall and cause its people to live in poverty. The prices of the products will either increase or stay the same but the wages of the people will always decrease.
This was actually true in Hitler being germany’s last hope so this poster would f been quite effective. Around 1932 was when Hitler was trying to gain most votes. Study source C. In what ways is this source useful to a historian studying Hitler’s rise to power? Use the source
Writing Assignment Georgia History The Great Depression forever changed and effected Americans, the economy, and surrounding nations greatly. Millions of Americans lost their jobs and homes. The economy experienced major defaults in banking and trading. Europe and many other nations were set back from many of our inabilities to finance their needs and help with their broken economies as well. Many events as a whole led to the depression.
Hoover’s most destructive and wrong move was the Hawley-Smoot Tariff that, although good intentioned, decimated foreign trade. But Hoover’s attempt were half-hearted because “his own philosophy, now hardened into dogma, set strict limits on action by the federal government, and he refused to set his philosophy aside even to meet the unprecedented emergency” (T&S 818). When Roosevelt came into office he had to fix a legacy of broken promises and failed legislature by the federal government. Although the New Deal was unprecedented in the amount of legislature it passed, it had many sources that had been building for the last years. Progressivism had been growing the last decades, as it had roots deep in American society, and the New Deal shared many aspects with Progressive ideals.
John majors government came into office after the downfall of Margret Thatcher, which ultimately created divisions within the party. Not only did the party suffer from the internal conflict but also faced the problems of the recession after the ‘Lawson boom’. In order to stabilise the economy he joined the ERM getting a good deal but ultimately resulting in ‘black Wednesday’ causing Major to raise interest rates to 15%. This was political suicide and he soon lost the support of the press we had once relied so much on to get re-elected in 1992. The housing market also plummeted leading to negative equity, which the majority of the working class could not afford resulting in the repossession of their houses combined with the drastic increase in unemployment Britain was in a mess.
The Great Depression was a severe period of poverty and tragedy. It effected many other countries not just America; especially in Europe, where many countries had not fully recovered from the aftermath of World War I. The cost of World War I weakened the ability of the world to respond to a major crisis. America alone had ten billon dollars of debt from the war. In Germany America’s economic failure contributed to the rise of Adolf Hiltler, so the Stock Market Crash had a domino effect on our country and others.
THE GREAT DEPRESSION BY: JASMINE SARVAS HISTORY 20 ESSAY January 14, 2011 THE GREAT DEPRESSION The Great Depression came about because of three main causes, in my opinion these three causes were not properly dealt with which could lead to the United States falling into another depression similar to the one in the 1930s. The first obvious cause was the deflation and inflation within the economy in the United States. The cause that immediately followed was the demand for product. This led to the last cause which was unemployment because of the nation being over loaded with product and lack of money. Most people think that the Great Depression started with the stock market crashing and it changed the way United States worked.