History Final

Great DepressionThe economists and historians have not been able to reach an compact regarding the causes of the depression . Most of them argue that the extensive stock securities industry speculation was the major cause of depression However they resist in the magnitude of effect of stock- merchandise crash on the gigantic depression . Milton Friedman says in this regard I don t uncertainty for a moment that the collapse of the stock securities industry in 1929 played a role in the initial ceding back (Parker , 49 ) Another economic historian Temin (1976 ) only holding a minor role to the speculation and stock market crash as the cause of broad depression . some other economists speculate that stock market crash set an impulse for great depression and was the primary cause of this economic loneliness . For example , the research studies by Romer (1990 ) and Flacco and Parker (1992 ) provides verified and verifiable reason that speculation and stock market collapse were the primary denotation of consumers uncertainty in the economic activity that finally conduct to great depressionOver-production of agricultural products is considered as another cause of great depression . As the matureers produced more wheat , cotton , clavus and other cash crops than could be consumed , as a progeny there was sharp decline in the prices and purchase of farm products . This moved(p) the purchasing power of the farmersOver-production in the industrial vault of heaven as well augmented the depression In the years of bonanza which followed by World War I , the American manufacturers , back up and captivated by huge profits had made to a fault many goods which could not be consumed by the home market . Ultimately these manufacturers were compelled to cut down the production which meant dismissing a subprogram of workers . The unemployed workers had very little or no electrical depicted object to spend which meant further reduction in the production of goods . As the depression grew , this process continuedThe introduction of the labor-saving devices also led to greater production with less labor .

As a firmness of purpose of introduction of the machines a large number of men were thrown and twisted out of jobs and usually they failed to secure alternative jobs . This meant diminishing capacity of the labor to purchase . The Gold standard and money squirrel away also contributed toward the increase of depression . As a progeny of the war , the economies of the European powers were badly shattered and they owed huge debts to linked States . Most of these debtor nations made an effort to buy as little as possible and sell more to linked States . For sometime the American investor kept the international trade machinery works by providing huge loans to the foreign powers . But once the borrowers reached a point where their capacity to repay ceased , the loans were stopped . This greatly affected the American tradeIn addition to these above factors , certain other factors also ope grazed either o cause the depression or to draw it worse once it had come These included (i ) the increase in population rate was much less than the production rate , which reduced the consumers (ii ) the disappearance...If you want to get a full essay, establish it on our website: Orderessay

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