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Essay On The Great Depression

In: Popular topics September 26th, 2016

Great Depression essay is a very interesting and popular topic. Causes of great depression essay were very significant for the history of the USA.

The Great Depression, according to Wikipedia, is one of the most important periods in modern US history. It began with the global economic crisis in 1929, which affected the United States. The acute phase of the crisis dragged on for three years - from 1929 to 1932-th, the beginning of 1933. All 1930s, until 1939, the economy could not fully overcome the crisis and recover. Because of its duration and serious consequences for society this period was called the Great Depression.

Causes of the Great Depression - is the subject of ongoing discussions about the role of the government policy and private business activity. In general we can say that the main cause of the crisis was the fact that capitalism has ceased to be a self-regulating system. It was a crisis of over-production of many goods, which followed a period of prosperity and the rise of the US economy. The natural development of the market and the presence of big capital, which operated outside the national regulation, led to the fact that the goods, including food and many other things, were produced so that the market could not digest them. The purchasing power of the population did not correspond to the quantity of goods that have been produced and were presented on the market. As a result, there was a collapse of the market.

The second reason was financial speculation. It was a time when the financial market was developing, when share trade growing was. However, this process also occurred out of control, causing many financial bubbles inflated, financial speculations were committed, speculative fictitious companies were created, as well as the wire fraud. Shares were issued by all and sundry. It also led to inflating the financial bubble and a sharp collapse in the value of shares, which served as another strong impetus for the economic crisis.

The decline of the US economy during the Great Depression was very profound. Some industries were in a catastrophic situation, especially the financial sector. By the beginning of 1933, the country began to stop the entire financial system, the banks were closed. The debt crisis was very serious, as drop in share price was great, and private investors and the company sought to withdraw their money from the banks, which led to the fall of the entire banking system, which was blocked and stopped functioning.

As for the significance and implications of the reforms, there are discussions as for how effective they were in economic terms. Frankly speaking, their effectiveness has not been very high, because many of the problems, in particular unemployment, a decline in production, were maintained until 1939. The economy was pulled from the crisis by World War II in 1939, which has already begun in Europe.

The main meaning of the program of the “New Course” of Roosvelt lied in the fact that during this time the role of the executive branch of the American government changed radically. It laid the foundations of the welfare state policy, it introduced a system of regulation of the economy, industry, agriculture and, above all, finances. A commission on regulation of the securities and exchange trade was established, which introduced restrictions on all sorts of speculation and abuse, creating bubbles, fraud financial companies, etc.

Social legislation, first adopted in the USA in 1930, is now considered to be the basis of the functioning of American society. Such civilized forms of regulation of economic and social life were created for the first time, as they were absent in the USA. Therefore, the value of the "new course" is that during this period it was created now existing US government and politics was formed, which goes on up to this day.