The Great Depression in the United States Economy

Term Paper , 2015 , 8 Pages

Business economics - Economic and Social History

The Great Depression was the worst economic epidemic in the 20th century and the worst in the United States of America. The global economic downturn that began in 1929 as a cause of the crash of the stock market lasted until 1939 took a long duration and caused a serious depression which was experienced by many countries. Its origin was the United States of America, leading to deflation in the prices of commodities, dropping of demand in credit, disruption of trade that resulted in unemployment and poverty.

Inhaltsverzeichnis

• Introduction
• Stock market crash
• Money, Banking and Deflation
• The gold standard
• Banking panics and monetary contraction
• Conclusion
• Literaturverzeichnis

Zielsetzung und Themenschwerpunkte

This article aims to explain the causes of the Great Depression in the United States and its impact on the economy. The article focuses on the role of the stock market crash, monetary policy, and banking panics in triggering and exacerbating the economic downturn. It also examines the consequences of the Great Depression for the American economy and the capitalist system.

• The role of the stock market crash in the Great Depression
• The impact of monetary policy on the economy
• The consequences of banking panics
• The effects of the Great Depression on the American economy
• The implications of the Great Depression for the capitalist system

Zusammenfassung der Kapitel

• Introduction

  This chapter provides an overview of the Great Depression, highlighting its significance as the worst economic crisis of the 20th century. It discusses the origins of the depression in the United States and its global impact, emphasizing the role of deflation, credit contraction, and trade disruption in causing widespread unemployment and poverty.

• Stock market crash

  This chapter examines the role of the stock market crash of 1929 in triggering the Great Depression. It discusses the tight monetary policy implemented by the Federal Reserve in the 1920s, which aimed to curb stock market speculation but ultimately contributed to the crash. The chapter also explores the consequences of the crash for investor confidence, consumer spending, and business investment, highlighting the sharp decline in economic output that followed.

• Money, Banking and Deflation

  This chapter focuses on the role of money and banking in the Great Depression. It discusses the importance of a stable money supply for a healthy economy and the consequences of deflation, which involves a shrinking money stock. The chapter also examines the gold standard, which was in place in the United States during the 1930s, and its impact on the money supply and the economy. It highlights the role of gold inflows and outflows in influencing interest rates and the overall economic climate.

• Banking panics and monetary contraction

  This chapter explores the role of banking panics in exacerbating the Great Depression. It discusses the phenomenon of depositors losing confidence in the solvency of banks and demanding cash payments for their deposits. The chapter also examines the consequences of banking panics for the money supply and the economy, highlighting the contraction of credit and the decline in economic activity that resulted from these events.

Schlüsselwörter

The key terms and focus themes of the text include the Great Depression, stock market crash, monetary policy, banking panics, deflation, gold standard, and the impact of these factors on the United States economy. The article explores the causes and consequences of the Great Depression, highlighting its significance as a major economic crisis in American history.

• Course: Economy Development
• Author: Enkai Zhang (Author)
• Publication Year: 2015
• Pages: 8
• Catalog Number: V294260
• ISBN (eBook): 9783656921196
• ISBN (Book): 9783656921202
• Language: English
• Tags: great, depression, united, states, economy