The Great Depression Cause And Effect Essay

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Register to read the introduction… The Panic of 1893 had ushered in a prolonged era of economic stagnation, and there had been more recent recessions, in 1907 and in 1920. The Great Depression of the 1930s, however, affected the nation more profoundly than any economic crisis that had come before not only because it lasted longer, but because its impact was far more widely felt. The American economy by 1929 had become so interconnected, so dependent on the health of large national corporate institutions, that a collapse in one sector of the economy now reached out to affect virtually everyone. Even in the 1890s, large groups of Americans had lived sufficiently independent of the national economy to avoid the effects of economic crisis. By the 1930s, few such people remained.26 Some economists argue that a …show more content…
The connection seemed too obvious to be a coincidence. Many modern writers have agreed; for example, the French historian Jacques Chastenet says in Les Annees d'Illsions: 1918-1931, "After the stock market crash on the other side of the Atlantic came an economic crisis. The crisis caused a chain reaction in the entire world.28 Many years after it ended, former President Herbert Hoover offered an elaborate explanation of the Great depression, complete with footnote references to the work of many economists and other experts. "THE DEPRESSION WAS NOT STARTED IN THE UNITED STATES," he insisted. The "primary cause" was the war of 1914-18. In four-fifths of the "economically sensitive" nations of the world, including such remote areas as Bolivia, Bulgaria, and Australia, the downturn was noticeable long before the 1929 collapse of American stock

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