What Caused the Great Depression?

    What Caused the Great Depression?
    The Great Depression was a global phenomenon that significantly changed the course of 
    history. In America, people lost their life savings when banks collapsed. The severe 
    decline in US capital triggered economic troubles overseas. The resulting German 
    poverty ultimately contributed to the rise of Nazism and World War II! What sparked the 
    world-changing Great Depression?
    Historians cite many contributing factors. Most agree that the downturn began with the 
    US stock market crash of 1929. Throughout the 1920s, rapid economic growth and 
    industrialization had been accompanied by easy lending. There was a vast amount of 
    unsecured consumer debt. But in October of 1929, the prosperity and optimistic 
    speculation of the “roaring twenties” suddenly collapsed. A Black Thursday on Wall 
    Street was followed by a Black Tuesday, and investors quickly lost $40 billion! Many 
    had invested their life savings and mortgaged their homes. 


    President Herbert Hoover failed to realize that his nation’s economy could collapse; he 
    believed he was witnessing a mere recession and said the market would naturally recover 
    within a couple of months. He refused to establish a federal unemployment program, and 
    he dismissed public construction projects as “progressive ideas” that wouldn’t improve 
    the economy. Hoover was a sort of “trickle-down” theorist who was inclined to support 
    businesses before unemployed individuals. He tried to protect American companies with 
    the Hawley-Smoot Tariff, but by reducing trade he only worsened the faltering American 
    and global economies. 
    When the American economy sputtered to a standstill, others suffered through 
    association. America had been an important trade partner for England, France, Germany, 
    Japan, Argentina, and Brazil. These countries suddenly saw sharp declines in demand for 
    their products. Also, all of the countries’ currencies were linked through their adherence 
    to the gold standard. Virtually every industrialized nation suffered wholesale price 
    declines of 30 percent or more at the start of the Depression.
    The 1930s were particularly harsh for farmers in the United States. In the Great Plains, 
    the Depression was worsened from 1933 to 1939 by a severe drought and dust storms. 
    Unable to produce crops, farmers lost their farms and banks seized their homes. Farm 
    families were reduced to living in shantytowns, which Hoover’s critics called 
    Hoovervilles. These farmers and other destitute citizens turned to bartering for basic 
    goods in the absence of cash. 
    Farmers’ losses increased bank failures in rural areas, and urban bank failures had already 
    been escalating rapidly. When stock investors lost their capital, banks started to fail at ten 
    times the 1920s rate. Nine thousand banks failed during the 1930s. And when banks 
    failed, customers lost their savings! By the end of Hoover’s term in 1933, Americans had 
    $140 billion missing from their accounts. The bank failures limited new enterprise and 
    growth across the country. Banks started to limit how much money customers could 
    deposit, and loans became scarce. Hoover was not about to win a second term.
    After Franklin D. Roosevelt was inaugurated in 1933, he instituted a bank holiday. Banks 
    would rest for several days while Congress passed the Emergency Banking Relief Act to 
    stabilize the banking system. The new President told his nation, “The only thing we have 
    to fear is fear itself.” 
    Roosevelt tried to end the Great Depression by creating dozens of government agencies 
    to support the people. Unemployment fell by two-thirds during his first presidential term. 
    If it weren’t for his programs, surely many more people would have died from starvation 
    and lack of shelter. Still, daily life remained precarious for most Americans until the 
    depression ended six years later with America’s involvement in World War II.


    RELATED POSTS
    :)
    :(
    =(
    ^_^
    :D
    =D
    |o|
    @@,
    ;)
    :-bd
    :-d
    :p

    ‎ Bookmarking Sites Aadhaar Card Aadhaar Card Toll Free Number Adsense Adsense ad units Adsense Safe.Website Traffic Agreement as valid Address Proof. Apartment for Rent in burj khalifa Apartment for sale in burj khalifa Apartment in dubai downtown for rent Asian Paints Asian Paints Customer Care ath Authority Domains backlink Backlinks Bank Banks Beautiful Water Painting BEST FUNNY NEWS Bharat Gas Bharat Gas Customer Care Phone Number Blank Space Blog guest post Blogger Website blogging blogs BLOOPERS 2016 Bookmarking Bookmarking service Bookmarking Site Boost your Alexa Business Website Business/Job opportunity buy Facebook like buy Blogger Website buy domain buy twitter follower Carrier AC Customer Care Chanakya IAS Academy Chanakya IAS Academy Ahmedabad Chanakya IAS Academy Coaching Chanakya IAS Academy Hazaribagh Chanakya IAS Academy Ranchi Chanakya IAS Academy South Delhi CIBIL CIBIL Customer Care click to protect Click2Protect Consumer Affairs Department Consumer Helpline control your laughter Credit Information Bureau Custom and Professional Blogger Website custom domain Deepak Bansal IPS - Success Speaks Episode 8 Dell Customer Support directory sites seo directory submission seo marketer Do follow Social Bookmarking Sites Dofollow Backlinks Dofollow Social BookMark Domain Domains Ebay Customer Care Ebay Customer Care India Ebay Customer Care Number Ebay Customer Care Number In India Ebay Customer Complaints Ebay Customer Service Ebay Customer Support EDU - GOV Backlinks Evo Evo WordPress Templates Evo WordPress Themes EvoWPThemes FACEBOOK page LIKE Federal Bank Customer Care Number FedEx FedEx Customer Care fednet toll free Free Directory List Fujitsu Laptop Gangnam Style General Insurance godaddy google Adsense google plus followers HDFC Life HDFC Life Customers Service Number HDFC Mutual Fund or Investment Services Account Health India TPA Services Toll Free number Health Insurance Health Insurance TPA Helpline Number at Amazon High Authority Backlinks Highlight your Service Highlight your Service on seoclerks.com Insurance Regulatory and Development Authority IRDA Contact Number IRDA Contact Number IRDA Grievance Call Centre IRDA Head Office Kingson Dream Kingson Dream Motivational Video Laugh Life Insurance list of general insurance companies List of Non-Life Insurance Companies in India List of Non-Life Insurance Companies in India LMFAO Mangalayatan University Customer Care Mediclaim TPA Mini Desktop Computer Most famous Viral video Most viewed YouTube videos Motivational Video off optimization seo Page Rank Domain Sale Pagerank Backlinks party rock anthem Passport Seva Passport Seva Customer Care Number Toll Free Paypal Customer Care‎ Paypal India Customer Care‎ Paypal India Customer Care‎ : 1800-212-3852 Pizza Hut 50% Off Pizza Coupons‎ Pizza Hut Buy 1 Get 1 Pizza Free‎ Pizza Hut Coupons Promo Coupon Pizza Hut Flat 50% Off Coupon‎ PR Backlinks Psy RDP Mini PC REAL Visitors Registered Rent Agreement as valid Address Proof Sale Domain SBI NRI Services sell Blogger Website Sell Buy Sell Page Rank Domains Sell PR Domains Sell Premium Page Rank PR Domains seo seo site seoclerks.com Setup custom domain Setup custom domain for blogger with godaddy domain Small PC Social Bookmarking Sites Stock Broker SWIFT Code SWIFT Code of SBI Taylor Swift TP LINK India Customer Care Number TPA For Mediclaim TPA Health Services twitter follower Twitter Profile Verified UID UIDAI Ultimate Like a Boss Compilation 2015 Unique Identification Authority of India Usefull TollFree Numbers Vip Bookmark Viral video on youtube Water Painting Web Directory Site web traffic Web Visit Website Traffic Western Digital Western Digital India Western Digital India Customer Care Number whitehat backlinks WordPress youtube views