Category: History Essay

The great USA depression that occurred in October 1929 led to the loss of people’s life savings, confidence in the market, minimized spending and low production of business firms. Among the factors that caused the depression include debt deflation, wealth inequality, ill-regulated markets, and structure of the banks, gold standard, population dynamics, and the collapse of international trade. Some of the consequences include unemployment, low profits, poverty, deflation, lost chances for economic growth and personal development chances. To start with, one of the main causes of depression in the USA is debt deflation. Economists say that the depression resulted from debt deflation and over-indebtedness in the region. They assert that the situation was accelerated by distress selling and liquidation of debts; reduced asset price levels; reduced profits, minimized output employment and trade; lack of confidence; reduced nominal interest rates; and money hoarding and decline in business net values. The above events led to facilitated over-indebtedness and debt deflation in the USA; hence, the great depression. The second causal factor of the USA’ S great depression is inequalities in the wealth of the citizens. Since the economy was producing more than the citizens could consume due to inadequate money, the market went into a serious depression. Instead of going to customer acquisitions, the surplus production was taken in as profits. Therefore, the worldwide over-investment in bigger industries than independent businesses resulted in the great depression. In order to solve this, there was a need for the government to make equal distribution of the purchasing power, uphold industrial foundation and re-inflate the wages and the prices.

Calculate the price

Calculate the price