Essay on The Great Depression

1423 Words Mar 28th, 2016 6 Pages
The Great Depression was an immense tragedy that took the jobs of millions of Americans. In the 1920’s America has been one of the top superpowers in the world for about a decade now and was full of prosperity. Americans would now experience devastation and despair. A long period of panic struck the people. Being that this is the most catastrophic event in U.S. History, how would Americans cope during this time and what does America plan to do to keep this from recurring; Despite the travesty, America survived this economic disaster.
Leading to the Great Depression was a series of events, not just the fall of the stock market. The Bank Panic of 1907 was the first economic downfall of the 20th century and showed to be a crucial moment for the financial history of the United States causing many changes in the Federal Reserve System. According to many studies, it was the warning for the crash of 1929. The stock market crash of 1929 and the Great Depression that followed it, may be the most difficult period of the 20th century for the US economy, which ultimately affect other countries economy, but not as drastically. Three things contributed to the Great Depression. First, the collapse of the financial system. It is said that it could have been avoided if the federal government had understood its role. Second, deflation played a huge role in deepening the recession. Third, the gold standard as a system of supporting a fixed rate proved to be tragic, because true gold will…

Related Documents