The Great Depression Essay Example | Topics and Well Written Essays - 1250 words

The Great Depression - Essay exercisingThe great depression was an scotch disaster that affected europium, North America and other industrialized nations for a period of one decade from 1929-1939. The depression was the worst depression the Western industrialized world has ever so experienced in the modern times (McElvaine 46). America started feeling the depression earlier than other countries imputable to the collapse of the prices of stock market of the New York Stock Exchange in the year 1929. Within the beside few years, the stock price continued buy the farming they lost their value with a decrease of 20%. This decrease in assets value ruined countless numbers of investors, and the performance of banks started declining.Many financial institutions could not withstand the strain from the ensuing depression. People lost trust in the economy and minimized their levels of acquire and spending (Burgan 117). Consequently, production declined with a big margin the overall conse quences of these situations escalated the advancement of the great depression. Sudden fall in output led to a deadly situation of unemployment in America because more than fifteen million Americans lost their jobs. Although the utter depression began in the US, it swiftly became an supranational economic crisis because of the close relationships, which true between the European economies and US after the First World War (Burgan 117). The US was the chief creditors of Europe during and after the war since the European economies were destabilized by the war debts and the war itself. Other nations like Germany had suffered heavy economic strains due to defeat in the battle because they were required to reimburse war damages. This connection was extremely viselike and close. When the American economy crushed down, the Europeans countries were also affected since the flow of wilinessrs and investors to Europe ceased. Unemployment in Germany skyrocketed within a short period claiming the jobs of more than six million people (McElvaine 46). The great depression was a art object soft on Britain because the unemployment levels were not as high as in America and Germany. However, Britains export and industrial sectors were depressed for a longer period that other countries, and they only recovered in the middle 1940s. All countries came up with strategies that would guard the domestic industries and boost their production. Nations imposed tariffs and increased the existing tariffs to discourage international trade (Downing 94). Imports were crowded with quotas this resulted to a decline in international trade with more than half. When the world trade collapsed, the international economy was disintegrated into trading blocs, which were influenced by currency of trade and political allegiance. This trade between blocs was clear(p) to many countries. Political implications of the great depression The political implications of the great depression were profound. Cou ntries such as lacquer and Germany reacted to the depression by forming militarist giving medications who came up with regressive foreign policies, which resulted to the Second World War. In Britain and the US, the government intervened in the issues that affected people by forming welfare system for the citizens (McElvaine 47). The government managed all the economies with little interference from individuals. President Roosevelt came up with employment schemes, which aimed at reducing unemployment. People were given street cleaning jobs and impression the public buildings. Further, Roosevelt came up with policies that supported the industrial and agricultural sectors. Although these measures did not yield to rapid economic recovery, they enhance the overall