The Great Depression : The Greatest Catastrophe Essay

1791 Words Dec 7th, 2016 8 Pages
The Great Depression, starting in 1929, was the greatest catastrophe in the history market systems that left a magnitude of people in poverty, while also lowering global GDP and creating an overall economic downfall. It all began with the great crash, occurring on October 29th, 1929, as the stock market disintegrated into fragments resulting in millions discovering that their paper gains had become nothing. There were many reactions and towards the looming event as economists attempted to find a resolution in order to soothe the dilemma. The various reactions and outcomes of the Great Depression helped to shape economic theory, social life, and people’s views of a market economy in general. In order to determine the extent of these various cases, one must assess the various economic, social, and political adherence towards the market economy throughout history. Thus, the Great Depression was a substantial and consequential event that led to thought-provoking fallout. Throughout the Depression era, Keynesian economists reflected across the various propositions comprehensively conceived in order to get society out of the economic crisis. Indeed, Keynesian economics argued about the various theories on aggregate spending and its effect on the total economic output in the short run. The Keynesian economists constructed these theories in order to stimulate the economy through a host of factors in which stabilization occurred through extensive intervention policies from the…

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