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Friday 12 April 2013

The Great Depression

        The Great Depressions was a hard time for newcomers in America. It was genius of the worst times in American History. There were as well many poor people, a surplus of production and unemployment was at an all time high. The government was having trouble getting the dry land back on track, only if they were doing all they would.

                 Background

        It was the roaring 20s and fleck stock prices were low, Americans went on a buying spree. The economy was already weak from a surplus of agriculture and the withdrawal of the British Finacial investment after World War I, among other things. Americans were cheerful with their prevaility and thought it would never end. The domestic product rosaceous 40% while income locomote 30%. (Faragher, 371) Unemployment was low, income was high, and by 1929, around 60% of all families owned a car, which was a lavishness at the time. (Ibid) Few noticed that things began to go downhill.

        Farmers faced declining markets because of declining European markets. The stock market kept steady despite a minor glitch earlier in the decade, and the government back up low interest rates. Almost all farmers did not prosper from this spree due to dropping need of agriculture. Prices of produce dropped active 40% in 1920 and 1921, and remained low throughout the 20s. (World Book Encyclopedia, 339) many farmers lost so much money that they could not expect the mortgages on their farms, therefore, loosing them.

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        Production rose about 50%, but buyers couldnt keep up, so there was a surplus of produce. (Ibid) Workers trim back their buying to hold down their debts and a national currency reduction only worsened the problem. From 1925 to 1929, the average stock prices rose and then doubled and this encouraged people to buy stocks, with hopes of merchandising them and...

for anyone interested heres a fantastic link that will unquestionably help you in writing on the great natural depression! Used it for a paper I had back in college.


http://www.amatecon.com/gd/gdoverview.h tml

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