Political And Economic Landscape Of The Great Depression Essay

829 Words Jul 3rd, 2015 4 Pages
The period of 1925 to 1940 saw the political and economic landscape of the United States broken by the Great Depression. On October 24th, 1929 millions would rush to banks and markets to pull their capital from the impending crash in an event known as Black Thursday. The shockwave caused by this crash launched the Great Depression, a period of history that affected every sector of American life and still influences political policy today. Three main ideas attempt to explain the cause and length of the Great Depression by assigning blame to either the Federal Reserve, the Presidency, or the private business center. It is the opinion of Milton Freedman that the popular view surrounding the cause of the Great Depression is incorrect. According to him, the failure was not the fault of the rich capitalists who ran the private businesses, but rather the fault of the National Reserve for not printing enough money to maintain the economy. He argues that the amount of currency declined in the US from 1929 to 1933 by one third, causing the same percentage of decline in the amount of operating banks. If the Federal Reserve would have done its constitutional job of keeping banks in business, Freedman asserts that the Great Depression would have been more of a recession, going further to estimate that it only would have lasted till 1931. According to him, multiple sources were pleading with the Federal Reserve to print more money and keep banks open, but were refused. He goes on to…

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