The Great Depression, the Worst Economic Recession in History

The Great Depression: The Worst Economic Recession in History The Great Depression was one of the worst economic recessions in the history of the world. The Great Depression was a period of unprecedented decline in economic activity. It is agreed to have occurred between 1929 and 1939--in a period of ten years. “Although parts of the economy had begun to rebuild upon their economical structure by 1936, generally high unemployment rates persisted until World War II” (Tejvan).Some of the causes of the great depression were The Stock Market crash of October 1929, dust bowls, failing banks, some presidential "blunders," and drought conditions, the results of the include a rapid rise in crime rate, higher education was too expensive for many Americans, and a lot of banks were scared to lend money to other people.

The major cause of the great depression was the stock market crash of October 1929. On October 29, 1929, Black Tuesday struck Wall Street as investors traded 16 million shares in the New York Stock market in a single day.

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A lot of money was lost and due to that, millions of investors were lost and America and other industrial worlds begin to fall into a downward spiral, known as the Great Depression or Recession. What caused this problem was the fact that during the 1920s the United States Stock market went under a rapid expansion, reaching its pinnacle in August 1929, this time was known as the roaring 20s. During this time, Americans were focused on making money and having fun. During this time, factories made to produce weapons for war were renovated to make consumer-friendly products.

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Most factories like Ford were producing cars, others were producing other technology such phones and so on.

Even though the industrial world was blossoming, after the war non-industrial workers such as farmers were struggling to make a profit due to bad soil. Later, during the 1920s a new thing known as credit came along. without the cash buy, all the new inventions like cars and radios, the farmers and other non-industrial workers relied on credit to buy all the new gadgets and technology. Credit caused Americans to save less and spend more money that they did not have which caused most of them to be in a great debt. some of them borrowed more money just to invest in the stock market. Finally, there was no one to buy the gadgets coming out of factories since the Americans had built up so much debt that they buy anymore due to the lack of demand for the supplies produced. After October 29, 1929, stock market prices nowhere to go but up.

Secondly, I say that the great depression was the worst recession in the history of the United States because, after The Great Depression, crime rates rose rapidly due to the fact that unemployed workers were desperate for money they resorted to petty theft to fend and provide food for themselves and their families. Also, suicide rates rose rapidly - up to 23,000 suicide deaths in the first year. Prostitution was also on the rise since desperate women were seeking for different ways to pay their bills and also "put food on the table” for themselves. A lot of families were malnourished since there was enough food to go around and the mortality rate of both men women and children rose rapidly, the life expectancy of a baby during birth dwindled to very low levels. Banks were on a holiday since President Franklin D. Roosevelt declared a three-day bank holiday. The banks were panicking because they could not keep up with panicked withdrawals that people were making out of their bank accounts, due to this, the banks were also scared to lend money to both men and women because of they afraid that the people would not be able to pay them back the debts that they owed. Since the banks were scared to give out money there was little to no money to the poor, famine-struck, starving citizens of The United States.

Others who might disagree that the Great Depression was not the worst recession in the United States might say that The Panic of 1797 would have been the worst economic recession in the history of The United States. The Panic of 1797 lasted for one year from 1796 to 1797. The Panic of 1797 was caused mainly by The Bank Restriction Act of 1797. The Bank Restriction Act of 1797 was a law passed by Britain to free them from converting banknotes and other currencies into gold. The Bank Restriction Act of 1797 came about like this: In 1694, the bank of England was created by The British Government to help with the need for cheap financial loans to provide money to be able to fund its expenses. "Three years later, the Bank was given monopoly rights that covered banking and note-issuing activities in England. However, once the war with France began in the 1790s, the British government's military expenses rose very quickly.” So, the main cause of the bank restriction act was the ongoing war between the British and the French. Another cause of the Panic of 1797 was the increase of the Land Speculation bubble. Another major contribution to the Panic of 1797 was that The Bank of England was refusing to make special payments on February 25, 1797, under the Bank Restriction Act 1797.

People who disagree with the fact that The Great Depression was the most serious recession in The United States history are wrong because, during the Great Depression, There was unemployment, there was poverty and there was also homelessness. Due to the loss of jobs and the loss of land, some the citizens of the United States resorted to petty theft and due to that the crime rate at that time went up and due to that people did not trust anyone and they started to withdraw all their money from the banks and were hiding it in safes in their homes if they had any. Some of the people also sold some of their lands to feed their families due to this the deflation of money went down drastically, and a lot of the farmers were selling their crops for so little money. The amount of money earned was so little so not a lot of people who could afford everyday meals and clothes for their families and kids. So The Great Depression was the worst recession in the United States history and the not Panic of 1797 because they're much more serious conditions that were going on during The Great Depression. Also, the lack of money made it hard for more Americans to reach for higher education like going to college or even high school. A lot of kids were affected by The Great Depression.

They knew that there wasn't a lot of money to be spent. Sometimes kids had to drop out of school to take up jobs to make what little money they could. Most kids who drop out of school are usually teens between the ages of sixteen and seventeen. Another problem was that there was no transportation to take the kid who wanted to school to their schools, also there were not a lot of high schools around rural areas to attend. Even though there a lot of opportunities for urban kids to go to schools, most of them could not afford books to use for school. Also, there was no school lunch so kids mostly went to school hungry and came back hungry since their families could not afford to take them to school while providing three meals a day for them. Even though most kids could afford clothes, girls mostly wore hand me downs from older siblings and boys mostly wore overalls & jumpsuits.

In conclusion, the Great Depression was the worst recession in United States history because during that time the United States was in ruble and were torn down. Also because the economy of the United States was poor. the citizens were suffering and they were in debt since they had huge loans from the banks, and the factories were not providing any new technology to be used.

 

Updated: Apr 22, 2022
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The Great Depression, the Worst Economic Recession in History. (2022, Apr 22). Retrieved from https://studymoose.com/the-great-depression-the-worst-economic-recession-in-history-essay

The Great Depression, the Worst Economic Recession in History essay
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