What caused the Great Depression and explain why Hoover’s efforts to manage the
Depression failed. Why did Hoover become so unpopular, and what were the faces of the Depression? How could you characterize the experience of the women in breadlines in Minnesota?
The most common belief is that the Great Depression was triggered by the 1929 crash of the stock market Some events that took place during the Great Depression have been studied such as deflation in assets and commodity prices, dramatic drops in demand and credit, and disruption of trade, ultimately resulting in widespread unemployment and hence poverty. The initial stock market crash triggered a "Panic Sell-off" that made the stock market go even lower. There are theories, from Keynesian and Institutional economists who argue that the depression was caused by a widespread loss of confidence that lead to underconsumption. Theories also argue that the financial crisis following the 1929 crash led to a sudden and persistent reduction in consumption and investment spending. After the panic and deflation set in, most people believed they could avoid further losses by staying clear of the markets and holding on to their money became which became profitable as …show more content…
Friedman and Schwartz write: From the peak in August 1929 to March 1933, the stock of money fell by over a third and the result was what Friedman calls the "Great Contraction” a period of falling income, prices, and employment caused by the choking effects of a restricted money supply. Friedman and Schwartz argue that people wanted to hold more money than the Federal Reserve was supplying. People hoarded money by consuming less causing a contraction in employment and production since prices were not flexible enough to immediately fall so action they were doomed, (Friedman, 1867–1960
Depression failed. Why did Hoover become so unpopular, and what were the faces of the Depression? How could you characterize the experience of the women in breadlines in Minnesota?
The most common belief is that the Great Depression was triggered by the 1929 crash of the stock market Some events that took place during the Great Depression have been studied such as deflation in assets and commodity prices, dramatic drops in demand and credit, and disruption of trade, ultimately resulting in widespread unemployment and hence poverty. The initial stock market crash triggered a "Panic Sell-off" that made the stock market go even lower. There are theories, from Keynesian and Institutional economists who argue that the depression was caused by a widespread loss of confidence that lead to underconsumption. Theories also argue that the financial crisis following the 1929 crash led to a sudden and persistent reduction in consumption and investment spending. After the panic and deflation set in, most people believed they could avoid further losses by staying clear of the markets and holding on to their money became which became profitable as …show more content…
Friedman and Schwartz write: From the peak in August 1929 to March 1933, the stock of money fell by over a third and the result was what Friedman calls the "Great Contraction” a period of falling income, prices, and employment caused by the choking effects of a restricted money supply. Friedman and Schwartz argue that people wanted to hold more money than the Federal Reserve was supplying. People hoarded money by consuming less causing a contraction in employment and production since prices were not flexible enough to immediately fall so action they were doomed, (Friedman, 1867–1960