What Are The Causes Of The Great Depression Essay

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The Great Depression was a monumental economic crisis for America and the entire world during the 1930s. By the end of 1930, 4 million Americans were jobless, and two years later, that number shot up to 12 million. Even through President “Teddy” Roosevelt’s New Deal, and various government programs, the Great Depression did not truly end until after World War II. During the scandalous terms of President Harding and Coolidge, labor lost much of their power. Also during President Hoover’s reign, the US economy took a down turn. There were many potential “causes” of this economic crisis, but one could narrow it down to three main topics. Although the American tariff policy and WW1 war debts and reparations were key influencers, to a lesser…show more content…
They were also influenced by the fear of Europe flooding American markets with cheap goods after the war. Presidents Harding and Coolidge, granted with authority to reduce or increase duties, were always sympathetic towards the big industries, thus much more prone to increasing tariffs than decreasing them. Congress soon passed the Fordney-McCumber Tariff Law, which raised the tariff from 27% to 38.5%. However, this presented a problem for Europe since they needed to sell goods to the U.S. in order to get the money to pay back is debts, and when it could not sell, it could not repay. Later on President Hoover passed the Hawley-Smoot Tariff of 1930 which raised duty on non-free goods to nearly 60%. This angered foreigners, reversing a promising worldwide trend toward reasonable tariffs and widening the trade gaps. It was designed to assist the farmers, but instead plunged both America and other nations deeper into the depression that already began with the Stock Market Crash of 1929. It increased international financial chaos and forced the United States into economic
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