Paper Topic:

economics

The Great Depression was the greatest economic downturn in the history of the United States , one that had far-reaching implications to the rest of the world . The first phase of the Depression was signaled by the infamous stock market crash in 1929 , after which the worldwide financial decline lasted almost a decade until the start of the second Word War

Many theories surround the causes that brought about the Great Depression . Considered some of the most significant reasons are the unequal wealth distribution during the 1920 's and the great increase in

stock market speculation during that decade . There was a huge gap between social classes , and most of the country 's wealth were owned by less than 0 .1 percent of the population . The agricultural sector also experienced great losses in profits due to lack of government subsidy

Before the onset of the Depression , Americans spent more than what they were earning . Following the introduction of credit lines , people acquired goods and property , expecting that they can pay for them later This made the economy very weak and unstable . Before the stock market crashed , stocks on the New York Stock Exchange enjoyed a rapid increase causing people to buy them with the hopes that the prices would continue to rise . When the market suddenly crashed in 1929 , the losses were devastating . Given these factors , the U .S . economy was not able to cope when the huge economic collapse happened

It was a hard and arduous time . Most business activities came to a screeching halt , forcing banks and establishments to close down Millions were left poor and penniless , depending mainly on charity to subsist , and many lost their homes . Diseases due to malnutrition were common . The level of unemployment reached a record high for the modern era . By 1933 , about one-third of the country 's population were unemployed

The government 's first response to the issue of unemployment was the creation of the Civilian Conservation Corps (CCC ) which enlisted jobless men aged 18-25 in work camps around the U .S , doing various conservation activities for a monthly wage of about 30 . The Civil Works Administration also provided work relief

The Depression created a lasting effect on American law and legislation . It gave the government greater control and responsibility towards the individual 's well-being . The Depression also served as a precursor to the creation of the Social Security system . The Roosevelt Administration established jobs and unemployment programs based on work relief . Roosevelt introduced the New Deal legislation that helped people get back to their feet and alleviate the effects of the Depression greatly expanding the government 's role in people 's lives

Bibliography

Great Depression ' Wikipedia . 9 March 2006 . Wikimedia Foundation Accessed 9 March 2006 "Great Depression in the United States . Microsoft Encarta Online Encyclopedia 2005 . 1997-2005 . Microsoft Corporation . Accessed 9 March 2006

Gusmorino , Paul Alexander III "Main Causes of the Great Depression Gusmorino World . 13 May 1996 . Accessed 9 March 2006

McElvaine , Robert S . The Great Depression : America , 1929-1941 . New...

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