What Are The Effects Of The Great Depression
The Great Depression was a very low point in economics which occurred from 1929 to 1939. According to History.com this event has been labeled the longest downturn in the history of the industrialized western world, which in total is 10 years. The Great Depression started with the stock market crash of October 1929. This was one of the most destructive stock market crashes, the market lost about 30 billion dollars in two days (Corwin). This economic crash must have shocked and devastated so many people. Just a few years before the devastating crash the stock market had grown incredibly, but as they say what goes up must come down. The aftermath of the crash, also known as the Great Depression, resulted in declines in consumer spending, investment,
…show more content…
This tariff was passed although it had high disapproval ratings. When it was passed other countries followed suit and increased their tariffs as a result banks all around the world and international trade declined by 66%. To fix the problem President Roosevelt passed the Reciprocal Trade Agreements Act in 1934, this act gave the authority to levy tariffs to the president and removed it from congress. This act was a step in the right direction which allowed the U.S. to restore their relationships with foreign countries and encourage international trade. In December 1931, President Hoover presented a plan of the Reconstruction Finance Corporation. The Reconstruction Finance Corporation was created and congress gave the corporation a beginning capital of $500 million. The Reconstruction Finance Corporation was also able to borrow up to $2 billion to make sure that banks, rail roads, etc. survive. The Corporation was meant to be like a life preserver for collapsing businesses that were considered necessary. This effort ended up being less effective then intended; it hardly affected the economy and therefore the Great Depression. When the Great Depression got to its worst in 1933 about 13-15 million Americans were unemployed and about half of the U.S. banks
This tariff was passed although it had high disapproval ratings. When it was passed other countries followed suit and increased their tariffs as a result banks all around the world and international trade declined by 66%. To fix the problem President Roosevelt passed the Reciprocal Trade Agreements Act in 1934, this act gave the authority to levy tariffs to the president and removed it from congress. This act was a step in the right direction which allowed the U.S. to restore their relationships with foreign countries and encourage international trade. In December 1931, President Hoover presented a plan of the Reconstruction Finance Corporation. The Reconstruction Finance Corporation was created and congress gave the corporation a beginning capital of $500 million. The Reconstruction Finance Corporation was also able to borrow up to $2 billion to make sure that banks, rail roads, etc. survive. The Corporation was meant to be like a life preserver for collapsing businesses that were considered necessary. This effort ended up being less effective then intended; it hardly affected the economy and therefore the Great Depression. When the Great Depression got to its worst in 1933 about 13-15 million Americans were unemployed and about half of the U.S. banks