Economical Impact
The impact the Great Depression had on the economy was brutal. As unemployment reached all time highs. Which meant less money flowing through the economy. As America was the leading economy in the work, when it faltered, it also caused other nations economies to collapse as well.
Steinberg 9
Some economists point a finger at protectionist trade policies and the collapse of international trade. The Smoot-Hawley tariff of 1930 dramatically increased the cost of imported goods and led to retaliatory actions by the United States’ major trading partners. This meant when something was imported it costed a little bit more money for that corporation or business to import it to America. A man 's suit cost about $10, a shirt less …show more content…
Banking relied on firm and confident depositors. If someone who has a deposit with a bank feels that their money is at risk they will simply pull their money leaving the bank with no business. The government began to increase interest rates, in 1929, from 3.5% to 5%. Many seem to believe that this was the root cause of the start of the recession to come during the late 1920’s. The United States Government made a grave mistake in failing to realize what was happening and did not stabilize the money supply. In fact, the supply of money fell by 30% between 1929 and 1933. Prices for goods were allowed to drop and banks were permitted to fail. This led to deflation. This lead to the banking system failing due to the government not …show more content…
As working class Americans went to work and finding out that they were unemployed. Crime rates were at an all time high as people stole and savaged bakeries just to provide their families with a loaf of bread. This epidemic was not just bound to the United States, but it was a worldwide disaster that impacted millions of people 's lives in a matter of months. This catastrophe caused thousands of banks to fail. In a result that caused tens-of-thousands of Americans to lose their savings, the stock market to collapse, lower wages for the working class, and fewer jobs available as many businesses had closed down. However, newly elected President Franklin Roosevelt brought a sign of hope to the American people, as his New Deal
The impact the Great Depression had on the economy was brutal. As unemployment reached all time highs. Which meant less money flowing through the economy. As America was the leading economy in the work, when it faltered, it also caused other nations economies to collapse as well.
Steinberg 9
Some economists point a finger at protectionist trade policies and the collapse of international trade. The Smoot-Hawley tariff of 1930 dramatically increased the cost of imported goods and led to retaliatory actions by the United States’ major trading partners. This meant when something was imported it costed a little bit more money for that corporation or business to import it to America. A man 's suit cost about $10, a shirt less …show more content…
Banking relied on firm and confident depositors. If someone who has a deposit with a bank feels that their money is at risk they will simply pull their money leaving the bank with no business. The government began to increase interest rates, in 1929, from 3.5% to 5%. Many seem to believe that this was the root cause of the start of the recession to come during the late 1920’s. The United States Government made a grave mistake in failing to realize what was happening and did not stabilize the money supply. In fact, the supply of money fell by 30% between 1929 and 1933. Prices for goods were allowed to drop and banks were permitted to fail. This led to deflation. This lead to the banking system failing due to the government not …show more content…
As working class Americans went to work and finding out that they were unemployed. Crime rates were at an all time high as people stole and savaged bakeries just to provide their families with a loaf of bread. This epidemic was not just bound to the United States, but it was a worldwide disaster that impacted millions of people 's lives in a matter of months. This catastrophe caused thousands of banks to fail. In a result that caused tens-of-thousands of Americans to lose their savings, the stock market to collapse, lower wages for the working class, and fewer jobs available as many businesses had closed down. However, newly elected President Franklin Roosevelt brought a sign of hope to the American people, as his New Deal