Analyse any two factors that were responsible for the great depression in america during 1929

• 1 The Great Depression was a contributing factor to dire economic conditions in Weimar Germany which led in part to the rise of Adolf Hitler and the Nazi Party. • 2 Within the United States, the repercussions of the crash reinforced and even strengthened the existing restrictive American immigration policy. • 3 By 1933, approximately 15 million people (more than 20 percent of the U.S. population at the time) were unemployed. Factors Leading to the Great Depression The stock market crash on October 24, 1929, marked the beginning of the Great Depression in the United States. The day became known as "Black Thursday," Many factors had led to that moment. World War I, changing American ideas of debt and consumption, and an unregulated stock market all played pivotal roles in the economic collapse. World War I transformed the United States from a relatively small player on the international stage into a center of global finance. American industry had supported the Allied war effort, resulting in a massive influx of cash into the US economy. As the war interrupted existing global trade relationships, the United States stepped in as the main supplier of goods, including weapons and ammunition. These purchases left European countries deeply in debt to the United States. After the war, the United States began a period of diplomatic isolation. It enacted and raised tariffs in 1921 and 1922 to bolster American industry and keep foreign products out. In the 1920s (the “Roaring Twenti...

The October 1929 downturn was only the beginning of the market collapse. By mid-November the stock market had lost a third of its September value, and by 1932—when the market hit bottom—stocks had lost ninety percent of their value. A share of US Steel which had sold for $262 before the crash sold in 1932 for $22. The stock market crash signaled the beginning of the Great Depression, but it was only one factor among many root causes of the Depression. A weak banking system, further collapse in already-low farm prices, and industrial overproduction each contributed to the economic downturn. The disastrous 1930 Hawley-Smoot Tariff (which raised average tariff rates to nearly 60 percent) caused America’s international trading partners to retaliate by raising rates on US-made goods. The result was shrinking international trade and a further decline in global economies. 1 ^1 1 start superscript, 1, end superscript As the effects of the Depression cascaded across the US economy, millions of people lost their jobs. By 1930 there were 4.3 million unemployed; by 1931, 8 million; and in 1932 the number had risen to 12 million. By early 1933, almost 13 million were out of work and the unemployment rate stood at an astonishing 25 percent. Those who managed to retain their jobs often took pay cuts of a third or more. 2 ^2 2 squared Farmers were hit particularly hard by the crisis. On top of falling prices for crops, a devastating drought in Oklahoma, Texas, and Kansas brought on a seri...

“Regarding the Great Depression, … we did it. We’re very sorry. … We won’t do it again.” —Ben Bernanke, November 8, 2002, in a In 2002, Bernanke, like other economic historians, characterized the Great Depression as a disaster because of its length, depth, and consequences. The Depression lasted a decade, beginning in 1929 and ending during World War II. Industrial production plummeted. Unemployment soared. Families suffered. Marriage rates fell. The contraction began in the United States and spread around the globe. The Depression was the longest and deepest downturn in the history of the United States and the modern industrial economy. The Great Depression began in August 1929, when the economic expansion of the Roaring Twenties came to an end. A series of financial crises punctuated the contraction. These crises included a To understand Bernanke’s statement, one needs to know what he meant by “we,” “did it,” and “won’t do it again.” By “we,” Bernanke meant the leaders of the Federal Reserve System. At the start of the Depression, the Federal Reserve’s decision-making structure was decentralized and often ineffective. Each district had a governor who set policies for his district, although some decisions required approval of the Federal Reserve Board in Washington, DC. The Board lacked the authority and tools to act on its own and struggled to coordinate policies across districts. The governors and the Board understood the need for coordination; frequently corresponded c...

At age thirty-nine, Roosevelt contracted polio. He lost the use of his legs for the rest of his life, though the public was largely unaware of his disability. (In private, he moved around by wheelchair. In public, supported by steel leg braces and assistants, he could walk short distances.) His life experiences forged a man whose easygoing manner belied an interior toughness. 2 ^2 2 squared In his 1932 run for the presidency, Roosevelt asserted that he would help “the forgotten man at the bottom of the economic pyramid,” and pledged himself to “a new deal for the American people.” In his First Inaugural Address, saying “the only thing we have to fear is fear itself,” he sought to reassure the public amid the anxieties of the 3 ^3 3 cubed On March 12, 1933, Roosevelt delivered the first of his live-radio “ fireside chats.” In the first chat he spoke about the banking crisis and explained the actions he and Congress had taken to address it. During his presidency he delivered thirty “fireside chats,” explaining to the public in reassuring tones and plain-spoken language his New Deal policies and the 5 ^5 5 start superscript, 5, end superscript In an ill-fated move in 1937, President Roosevelt sought to pack the US Supreme Court, which had ruled against many of his programs, with justices who would be more favorable to the New Deal. His “ court packing” plan called for adding an additional justice to the Court for every justice over the age of 70. The measure was widely denoun...

Causes of the decline The fundamental cause of the Great Depression in the aggregate demand), which led to a decline in production as manufacturers and merchandisers noticed an unintended rise in inventories. The sources of the contraction in spending in the United States varied over the course of the Depression, but they cumulated in a monumental decline in The initial decline in U.S. output in the summer of 1929 is widely believed to have stemmed from tight U.S. By the fall of 1929, U.S. stock prices had reached levels that could not be justified by reasonable anticipations of future earnings. As a result, when a variety of minor events led to gradual price declines in October 1929, investors lost confidence and the stock market bubble burst. Panic selling began on “ The stock market crash reduced American aggregate demand substantially. Consumer purchases of durable goods and business see The next blow to aggregate demand occurred in the fall of 1930, when the first of four waves of banking panics gripped the United States. A banking By their nature, banking panics are largely irrational, inexplicable events, but some of the factors contributing to the problem can be explained. Economic historians believe that substantial increases in farm debt in the 1920s, together with U.S. policies that had encouraged small, undiversified banks, created an The Federal Reserve did little to try to stem the banking panics. Economists Benjamin Strong, who had been the governor of the S...

By then, production had already declined and unemployment had risen, leaving stock prices much higher than their actual value. Additionally, wages at that time were low, consumer debt was proliferating, the agricultural sector of the economy was struggling due to drought and falling food prices and banks had an excess of large loans that could not be liquidated. The American economy entered a mild recession during the summer of 1929, as consumer spending slowed and unsold goods began to pile up, which in turn slowed factory production. Nonetheless, stock prices continued to rise, and by the fall of that year had reached stratospheric levels that could not be justified by expected future earnings. Stock Market Crash of 1929 On October 24, 1929, as nervous investors began selling overpriced shares en masse, the stock market crash that some had feared happened at last. A record 12.9 million shares were traded that day, known as “Black Thursday.” Five days later, on As consumer confidence vanished in the wake of the stock market crash, the downturn in spending and investment led factories and other businesses to slow down production and begin firing their workers. For those who were lucky enough to remain employed, wages fell and buying power decreased. Many Americans forced to buy on credit fell into debt, and the number of foreclosures and repossessions climbed steadily. The global adherence to the Bank Runs and the Hoover Administration Despite assurances from President Her...

analyse any two factors that were responsible for the great depression Analyse Any Two Factors That Were Responsible For The Great Depression – As per our readers’ demand and comments, we are publishing this article. If you want to know about analyse any two factors that were responsible for the great depression, continue reading and learn more. • • • • • • • • • • About analyse any two factors that were responsible for the great depression Analyse any two factors that were responsible for the Great Depression in America during 1929. Answer:ExplanationOverproduction in agriculturewas a major issueUS overseas loansamounted to over $ 1 billion in the first half of 1928. People Also Read: The Great Depression of the late 1920s and ’30s remains the longest and most severe economic. In the United Sttes, where the effects of the depression were generally worst, between 1929 and 1933 industrial production fell nearly 47 percent, gross domestic product (GDP) declined by 30 percent, and unemployment reached more than 20 percent. People Also Read: The Great Depression is attributed to the combination of the following factors: The failure of banks, which was the impact of the stock market crash as more people withdrew their savings from the banks leading to closure. The passing of Smoot-Hawley Tariff or the Tariff Act of 1930, imposed high taxes on imported goods. People Also Read: How to use Explain the causes of the Great Depression. – toppr.com The Great Depression was a result of...