...In this essay I will be discussing what affect ‘The Wall Street Crash’. There was many reasons for the crash and the crash had effect on all the people in America. I will be discussing the way the depression effected people. One reason why there was a depression was because wealth was not shared out fairly in the USA. Sixty per cent of American families were living below the poverty line. As a result many Americans could not afford to buy the products like vacuum cleaners and cars. By 1928 American factories were over producing. They could not sell their goods abroad because tariffs were high on American products. Factories had a cut production off by laying off workers. As result unemployment grew. Another reason for the depression was because farmers were experiencing serious problems. In the 1920’s farmers were producing too much food and it was going to waste. As a result food prices fell. Farmer’s incomes fell so they borrowed money from the banks. They also tried to produce more food which meant prices fell even lower. As a result farmers were unable to pay back the money they borrowed from the banks. The banks ended their mortgages and took their houses and their forms. Thirdly speculation and the Wall Street Crash caused depression. Millions of people had borrowed money to buy shares hoping to have better lives and become wealthy. People who had brought shares lost a lot of money. They could not repay the money they had borrowed from the banks. Hundreds of banks...
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...In 1929 the Wall Street crash ended the economical boom and marked the start of the depression. The Wall Street crash was when share values fell dramatically this happened due to a number of reasons and in this essay I shall try and explore the main reasons for this. Overproduction was one of the main reasons for the Wall Street crash. During the boom businesses were overproducing which meant that they were making more than they were selling. This was because also due to the new way of manufacturing. Production lines were most commonly used which meant that they factories could make more product in a shorter amount of time and during the boom this was a good thing as the demand for products was great but as early as 1926 the demand for goods was decreasing but business kept producing as they had been as they thought that the demand would rise again but it didn’t as many people that could afford the goods had bought them earlier on and they didn’t need any more. Not everyone had benefitted from the boom and the groups that were poor could not afford the luxuries. Even farmers had been overproducing which meant that even food prices went down and so even farmer couldn’t make a profit. A drop in sales and product values meant that businesses had to fire many workers and many farmers lost their which mean that many people had less money to spend. After the First World War America introduced the idea of isolationism which meant that America had little to do with foreign policies...
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...RESEARCH QUESTION: How far was the Wall Street Crash the main cause for the Great Depression? A. Plan of the Investigation 1 B. Summary of Evidence 1 C. Evaluation of Sources 3 D. Analysis 5 E. Conclusion 7 F. Bibliography 8 A. Plan of the investigation The investigation considers the extent to which the Wall Street Crash was the main cause for the Great Depression that hit the Unites States throughout the 1930s, whose effects were spread worldwide. For this purpose the investigation assesses the significance of the crash in the stock market in relation to other factors that were also relevant. Through the selection and summary of relevant written sources, the investigation examines the 1920’s the domestic and international problems during the “prosperous” years that triggered the crisis. In order to reach a conclusion two of the sources: The Great Depression by Lionel Robbins and The Great Depression and The New Deal by Robert F. Himmelberg are evaluated for their origin, purpose, values and limitations. Word count: 120 B. Summary of evidence By the time the United States entered the First World War in 1917, the USA was the world’s biggest economic power[1]. Its role in providing extra equipment and a supply of fresh soldiers was instrumental in the final Allied victory[2]. The artificial prosperity of the war years was followed by an inevitable collapse[3]...
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...Caroline Vernet 02/14/2012 Assignment 1: Dimensions of Negotiation & Organizational Conflict Resolution Introduction Every day we are confronted to conflicts and situations when we have to negotiate. It could be either a negotiation between parents and children, employees and employers or a contract between two companies. Negotiation is a complex social process of decision making between two or more parties that discuss to find a solution for their opposing interests. Negotiation includes many dimensions. In the first part, I will present you the ten dimensions that I believe are the most important in the negotiation process, as a form of a logical framework. And then, I will develop precisely and deeply two of these dimensions that are: the Decision Making and the Motivation. PREPARATION PREPARATION Part 1 NEGOTIATION NEGOTIATION POST-NEGOTIATION POST-NEGOTIATION MOTIVATION MOTIVATION EMOTIONS EMOTIONS ACTION ACTION The framework above represents the different phases of the negotiation: Preparation, Negotiation and Post-Negotiation. In each of them, I included the dimensions that are, according to me, the most important. Therefore, before negotiating, people need to elaborate their Strategy and Planning Process as well as defining there goals. Then the process of negotiation starts by the Perception, followed by the analysis of the information. Negotiators may have a conflict because of different interests. And, to resolve...
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...and your own knowledge. The USA was hit by the Great Depression in 1929 because of increasing restrictions on international trade to a small extent, as it was indeed a significant factor in creating the onset of the Great Depression, as it acted as one of the long-term problems with the US economic system. Source 7 supports this argument, and suggests that it made world trade more difficult as it led to the USA not being able to 'expand its foreign markets as rapidly as its production'. However, other factors could also be considered to have started the Great Depression more significantly, with source 8 suggesting that it was due to long-term problems in the economy associated with a lack of purchasing power and the effects of the Wall Street Crash, along with source 9 demonstrating that it was due to the laissez-faire policies pursued by the Coolidge administration. The USA was arguably hit by the Great Depression in 1929 because of the combination of under consumption and overproduction linked to the maldistribution of wealth in US society during the 1920s. The problem with under consumption was mainly due to the fact that a substantial segment of the population that was farmers and workers in declining industries had not shared in the general prosperity of the early 1920s. In 1929, American farmers annual income averaged at $273, whilst the national average was $750, demonstrating the significant lack of purchasing power they had. This was a problem before the onset of the...
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...Ryan Peace Prof. Young Macro Econ Film Analysis on “Crash of 1929” Discuss 3 economic theories raised during the film. Economic Growth – positive. Spirits were high during the roaring 20s. New inventions and mass marketing encouraged people to spend and spend. Mass production made new technology affordable to middle class. New construction and automobiles were major factors causing the economic growth of the period. Price Level Stability – positive. The prices of stocks were easily manipulated by groups pooling together their money, or in some cases by just one man who managed a great amount of money and could single handedly drive the price of a stock up. Wealth without work – positive. People were paying just 10% of the price of a stock and borrowing the rest. If the stock went up like it had been during the earlier part of the decade they were able to pay their debt off with the increase, if it decreased however, they now owed the original 90% they borrowed, plus interest. And the original 10% was not worth anywhere near what they had first borrowed. What public policies did the government utilize during the 1920s that could have influenced the crash of 1929? Consumer credit. People were allowed to buy on margin. This was not such a terrible thing with tangible products, like appliances, but it was a disaster with the stock market. The value of a refrigerator is not going to decrease in an instant the way a stock could. Supply-side economics, the...
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...At the end of the 1920s, the United States boasted the largest economy in the world. With the destruction wrought by World War I, Europeans struggled while Americans flourished. Upon succeeding to the Presidency, Herbert Hoover predicted that the United States would soon see the day when poverty was eliminated. Then, in a moment of apparent triumph, everything fell apart. The stock market crash of 1929 touched off a chain of events that plunged the United States into its longest, deepest economic crisis of its history. Nine thousand banks failed during the months following the stock market crash of 1929.It is far too simplistic to view the stock market crash as the single cause of the Great Depression. A healthy economy can recover from such a contraction. Long-term underlying causes sent the nation into a downward spiral of despair. First, American firms earned record profits during the 1920s and reinvested much of these funds into expansion. By 1929, companies had expanded to the bubble point. Workers could no longer continue to fuel further expansion, so a slowdown was inevitable. While corporate profits, skyrocketed, wages increased incrementally, which widened the distribution of wealth. The richest one percent of Americans owned over a third of all American assets. Such wealth concentrated in the hands of a few limits economic growth. The wealthy tended to save money that might have been put back into the economy if it were spread among the middle and lower classes. Middle...
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...America in the 1920’s The Boom Period During the 1920s there was a prolonged boom in the American economy. Industrial production doubled, the economy grew rapidly and fortunes were made. Life had never seemed better for the majority of the American people. The boom developed for a number of reasons. World War I The European economies were exhausted by the cost of waging a long war. In comparison, the USA grew rich during the war years. Its late arrival to the war, and the fact that its cities and industries were not bombed or destroyed during the conflict, meant that at the end of the war it was able to capitalise on the perilous state of European industry and dominate their markets. New technologies The first 20 years of the twentieth century saw huge technological advances in industry. Factories became automated. Machines and other improved manufacturing techniques meant that huge amounts of goods could be made at a fraction of the cost. The age of mass production had arrived. In the decade of the 1920s economic output increased by a staggering 50%. Consumer boom Because goods could be produced in greater numbers and at much lower prices, more people were able to afford them. This led to huge increases in the sales of products such as cars, refrigerators, radios and cookers. Buying on credit This consumer boom was greatly aided by the availability of hire purchase - the ability to buy goods on credit. Because times were good, people were not worried about...
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...Great Depression HIS/125 10-20-2011 Great Depression Many people credit the stock market crash of 1929 cause the Great Depression it was only one of many reasons that brought on the Great Depression in America. The Great Depression lasted from 1930 until the US entered World War II, and with the work that World War II brought to industry America was able to climb out of the Great Depression. The damage that the great stark market crash due to the economy is unparalleled in American history. It not only hurt Americans at home but also abroad, Europeans did not trust America anymore due to this crop prices abroad sunk to new lows. Farm income in America dropped by more than half (Davidson, 2005). Bank failures also spread from the rural banks to the cities, depositors rushed to withdraw their cash, this sent the American economy in a downward plunge. The automobile and construction industries also began to lag. But overall the causes for the Great Depression started earlier, that when the great crash happened. In the year 1928 to 1929 consumer spending and services dropped to 1.5%. (Davidson, 2005). The booming economy has hurt itself instead of paying workers higher wages businesses use their profits to expand their factories, this in turn led to, workers who did not have enough money to buy the products that they were making at efficiently and lower costs (Davidson, 2005). Workers started borrowing or using credit to pay. Consumer debt...
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...Juleanna Rios-Monge Period:4 Mr.Ploude Black Tuesday 1929 Topic: Black Tuesday 1929 Question: What happened on Black Tuesday? Thesis: The Stock Market Crash of 1929, also known as Black Tuesday, caused many investors to lose billions of dollars which caused a large number of unemployment and helped lead to the Great Depression. The Stock Market Crash of 1929, also known as Black Tuesday, caused many investors to lose billions of dollars which caused a large number of unemployment and helped “lead to the Great Depression.” The Great depression did not end until 1939 the same year as World War Two helped boost jobs availability in the workforce and in building machinery. One of the worst lost in shares would be in The Wall Street Journal....
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...banks were forced to be ruin and by 1933, 11,000 of the United States' 25,000 banks had fallen. The failure of so many banks, combined with a general and nationwide loss of confidence in the economy, led to bring down the levels of spending, demand and later of production. The result was enormously falling production and rising unemployment and by 1932, U.S. manufacturing output had fallen to 54 percent of its 1929 level, and unemployment had risen to between 12 and 15 million workers. Cochran (1968) reported that “By this time it was clear that the decline in the economy was accentuated by the crash. Almost all indices were off at an increasing rate” (p. 7). However, what many people do not know or contemplate is how The Great Depression started. Responding to the following questions will help reveal the causes: 1. Could one cause be of the Great Depression the Stock Market Crash of 1929? 2. What role did the Federal Reserve play? 3. Could have...
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...The American society has changed drastically from 1920 to present day 2014. Over the last 100 years there has been transformations in lots of things which has changed the way America is viewed today. There has been many major culture booms such as the type of clothing worn, the music that is produced,the way different races are treated and multiple other reasons. The 1920’s, sometimes referred to as the roaring twenties were characterized by economic prosperity and tremendous social,artistic, and cultural dynamism.The twenties witnessed the large scale of cars, telephones, motion pictures and electricity. The demand and aspirations bought out significant changes in lifestyle and culture. Popular culture in the 1920’s was characterized by the innovation in film, radio, music, fashion, dance, literature and intellectual movements.The 20’s was often referred to as the “Jazz Age”, Jazz music experienced a dramatic surge in popularity.George Gerswin wrote Rhapsody in blue And in American in Paris. Eddie Lang and Joe Ventuiti While the first musicians to incorporate the guitar and Violin into jazz.Dance clubs became extremely popular.Dances such as the waltz, foxtrot ,and the tango were the most popular.There was a variety of novelty dances during this period which were the break way,and he lindy hop, which eventually evolved into the swing.Before world war one woman started to migrate towards the cities,during world war two they started to work in factories.After WWI woman found...
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...crummy. People were controlled by corrupt governments and monopolies it was extremely difficult to get a job so many people were living in the streets. This all began to change with the election of Theodore Roosevelt and his Square Deal. The square deal aimed to help with the labor ,business, consumion , and environment of the American people. Theodore passed many laws to improve...
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...worldwide depression caused by matters such as unregulated wall street, world war one, poor sectors in the economy, and isolationism. The depression was the biggest economic fall in American’s history. This crash stretched throughout the globe and affected the rich as well as the poor. There were many causes that assisted in bringing the depression into existence. However, one of the main causes was the disproportionate riches during the nineteen-twenties. The gap between the rich and the working class people was the enlarged industrialize production during this period. In addition, this periods production cost fell quickly as wages rose slowly and prices remained steady. Following world war, one arrived what we know of today as The Jazz Age. It was movement from the 1920’s that emerged dance and Jazz music. This age glorified city life. Americans and many African American sharecroppers from the South left their farms in record numbers to live and work in places like Chicago and New York City. F. Scott Fitzgerald called it a time when "the parties were bigger, the pace was faster, the buildings were higher, the morals [reduced]". This era was also known as the "anything goes “period, which emerged in America after World War I. “The unbounded optimism of the Jazz Age and the shocking consequences when reality finally hit on October 29th, ultimately lead to the Great Depression” (PBS). Beginning with the stock market crash of 1929, which was originally designed as a corporation...
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...has seen Unemployment rates that have been high as well as rates that have been low. During the past two or three weeks I have been researching the topic beginning with October 29th, 1929, the start of the great depression, all the way until modern day. It has been an interesting few weeks and I’m excited to analyze everything that I have discovered. The Great Depression is considered to be the largest and longest lasting crash that the American economy has taken to date. The Great Depression really began during the summer of 1929. That summer American consumer spending began to fall, and this caused unsold product to gather. While this was occurring the prices of stock kept rising, and by October of 1929 the stock prices were unreasonably high. October 24th is known as black Thursday; on this day nearly 13 million shares were trades which scared the people of Wall Street. October 29th 1929 fell on a Tuesday that year. This was the day that the great depression truly started. Almost 16 million shares were traded on this day. It created a panic on Wall Street and soon after millions of investors lost all of their money. The loss of money in circulation caused consumer spending to drop, and this caused the supply of products to drop. Many companies went out of business, and those who didn’t lay off many of their workers. The great depression peaked around 1933. At this time there were around 15 million Americans that were out of work, and almost fifty percent of America’s banks...
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