The Great Depression

The Great Depression

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Introduction

The Great Depression is a time of economic hardship for many Americans (Encyclopedia Britannica 2007 . It had been a period of massive layoffs from different companies , many bank failures , farm bankruptcies and decrease in sales caused by product devaluation . Americans had tried to protect its local commodities by imposing higher tariffs on imported goods . Countries with international ties with America had been greatly affected with that action causing them to experience also the effects of Great Depression . Worst ever and longest ever depression , lasting

for about a decade , that happened in the history of the United States , Great Depression should not repeat itself so as today 's generation would not experience its adverse effects

To succeed with this objective , economist wants to have a unified idea about the Great Depression that happened in the year 1929 up to the early 1940s . How did the Great Depression occur ? How did the Government and /or the market sector did not succeed to halt the coming and lasting for a decade of the Great Depression ? How did the U .S . government respond to the ailing of its citizens ? What are the effects of the Great Depression to the society specifically to the American families ? What could be the reasons of why the Great Depression occurred so as both the people and the government could be alarmed to perform such necessary actions

1 . How did the Great Depression occur

There are two conflicting possible answers economists want to propose To differentiate the two the first is called the view from the left and the second is view from the right . View from the left promotes the idea of the Keynesian Theory from John Maynard Keynes . The other view promotes the ruling free market idea during the roaring twenties called Laissez-faire

According to the Keynesian Theory ( Intellectual Takeout , Ideas to go The Great Depression , the Laissez-faire is the one should be blamed in the occurrence of the Great Depression . Laissez-faire taught that the government should not interfere in the flow of economy . Government should not be alarmed with any market and finance speculations or whatsoever because they were naturally included in the business cycle The Laissez-faire had been fruitful in the booming of industries in the 1920s but it had adverse effects later on because manufacturing excesses of that decade yields to overproduction that exceeded consumer demand This triggered in the fast decrease of commodity prices . Company owners upon realizing they are losing money , they had soon decided to slow its production by cutting their number of employees . This series of actions brought the idea for common people that the hard time had come and so they must save their money for future and more important use . The people that had emerged rich in the 1920s wanted to preserve their belongings adding to the mass of conservative ' people . This action , in economic terms is called public hoarding of money (Murray Rothbard

2 . U .S . Government Response

To correct...