The Great Depression Possible Leads to Its Cause :: essays papers

The Great fall(a)ing off Possible Leads to Its Cause The Great Depression is known as the worst economic disaster of our time. While this accompaniment is accepted throughout the world, a specific create to this disaster dust a mystery. peradventure there is no one certain reason. Maybe it was a result of widespread factors causing the world-wide recession. Overproduction, World War I, and the banking brass were all origins of the Great Depression. Thanks to the roaring twenties, consumers of the late twenties were truly confident. They didnt care to spend. To complement the increased spending, producers began to spend more as applied science improved production speeds and costs. Author T.H. Watkins says more and better goods were produced during this time (the 1920s), than at any time in history (45). With slightly increasing wages, consumers bought as much as their wallet would allow them. However, they couldnt afford to purchase all that was produced and overproduct ion occurred. Even though overproduction occurred, that still wasnt enough to cause this stagnant economic recession. World War I was partly to sentence because it had made the international economy unstable. Though Great Britain was the national creditor before the war, devastating circumstances made G.B. needy for some finances instead. In fact, much of the continent of Europe had been destroyed. Factories, farms, and homes were all brought to the ground as the competitiveness between nations began. By the end of the war, the fall in States was the least harmed of the Allied nations. The joined States didnt lose near the lives but it did lose a lot of money. afterward the war, nations still sought cash to repair their tarnished homelands. The United States and its supposed boom economy became the lender to many countries. These loans couldnt be repaid. In fact, Europe take down relied on U.S. loans to purchase U.S. goods. With the foreign trade market in a downward spiral, it was evident that harsh times were soon to come. As capital of Minnesota Gusmorino illustrates on his web page, by 1929, ten percent of American taxation national product went into exports. When the foreign nations discovered they couldnt afford to buy U.S. goods, U.S. exports drip a drastic thirty percent seemingly overnight. The $1.5 billion woolly in foreign sales between 1929 to 1933 was one-eighth of all helpless American sales, Gusmorino concludes. So, as the world economy became a nightmare, the banking system of the United States also became a disgust.