Essays About The Government Programs For Great Depression

Essays About The Government Programs For Great Depression-86
On Tuesday there was another collapse in prices known as 'Black Tuesday'.Although shares recovered a little in 1930, confidence had evaporated and problems spread to the rest of the financial system.

Therefore, the unemployed dramatically reduced their spending.

America had lent substantial amounts to Europe and UK, to help rebuild after first world war.

Output fell, unemployment rose causing a negative multiplier effect.

In the 1930s, the unemployment received little relief beyond the soup kitchen.

The Marxist View saw the Great Depression as heralding the imminent collapse of global capitalism.

With unemployment over 25%, Marxists held that this showed the inherent instability and failure of the capitalist model.

In a desperate bid to raise money, they also tried to call in their loans before people had time to repay them.

As banks went bankrupt, it only increased the demand for other savers to withdraw money from banks.

It was at a level not seen since the nineteenth century.

In the first 10 months of 1930 alone, 744 US banks went bankrupt and savers lost their savings.

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