what caused the great depression background essay questions

The Great Depression

“Regarding the Great Depression, … we did it. We’re very sorry. … We won’t do it again.” —Ben Bernanke, November 8, 2002, in a speech given at “A Conference to Honor Milton Friedman … On the Occasion of His 90th Birthday.”

In 2002, Ben Bernanke , then a member of the Federal Reserve Board of Governors, acknowledged publicly what economists have long believed. The Federal Reserve’s mistakes contributed to the “worst economic disaster in American history” (Bernanke 2002).

Bernanke, like other economic historians, characterized the Great Depression as a disaster because of its length, depth, and consequences. The Depression lasted a decade, beginning in 1929 and ending during World War II. Industrial production plummeted. Unemployment soared. Families suffered. Marriage rates fell. The contraction began in the United States and spread around the globe. The Depression was the longest and deepest downturn in the history of the United States and the modern industrial economy.

The Great Depression began in August 1929, when the economic expansion of the Roaring Twenties came to an end. A series of financial crises punctuated the contraction. These crises included a stock market crash in 1929 , a series of regional banking panics in 1930 and 1931 , and a series of national and international financial crises from 1931 through 1933 . The downturn hit bottom in March 1933, when the commercial banking system collapsed and President Roosevelt declared a national banking holiday . 1    Sweeping reforms of the financial system accompanied the economic recovery, which was interrupted by a double-dip recession in 1937 . Return to full output and employment occurred during the Second World War.

To understand Bernanke’s statement, one needs to know what he meant by “we,” “did it,” and “won’t do it again.”

By “we,” Bernanke meant the leaders of the Federal Reserve System. At the start of the Depression, the Federal Reserve’s decision-making structure was decentralized and often ineffective. Each district had a governor who set policies for his district, although some decisions required approval of the Federal Reserve Board in Washington, DC. The Board lacked the authority and tools to act on its own and struggled to coordinate policies across districts. The governors and the Board understood the need for coordination; frequently corresponded concerning important issues; and established procedures and programs, such as the Open Market Investment Committee, to institutionalize cooperation. When these efforts yielded consensus, monetary policy could be swift and effective. But when the governors disagreed, districts could and sometimes did pursue independent and occasionally contradictory courses of action.

The governors disagreed on many issues, because at the time and for decades thereafter, experts disagreed about the best course of action and even about the correct conceptual framework for determining optimal policy. Information about the economy became available with long and variable lags. Experts within the Federal Reserve, in the business community, and among policymakers in Washington, DC, had different perceptions of events and advocated different solutions to problems. Researchers debated these issues for decades. Consensus emerged gradually. The views in this essay reflect conclusions expressed in the writings of three recent chairmen, Paul Volcke r, Alan Greenspan , and Ben Bernanke .

By “did it,” Bernanke meant that the leaders of the Federal Reserve implemented policies that they thought were in the public interest. Unintentionally, some of their decisions hurt the economy. Other policies that would have helped were not adopted.

An example of the former is the Fed’s decision to raise interest rates in 1928 and 1929. The Fed did this in an attempt to limit speculation in securities markets. This action slowed economic activity in the United States. Because the international gold standard linked interest rates and monetary policies among participating nations, the Fed’s actions triggered recessions in nations around the globe. The Fed repeated this mistake when responding to the international financial crisis in the fall of 1931. This website explores these issues in greater depth in our entries on the stock market crash of 1929 and the financial crises of 1931 through 1933 .

An example of the latter is the Fed’s failure to act as a lender of last resort during the banking panics that began in the fall of 1930 and ended with the banking holiday in the winter of 1933. This website explores this issue in essays on the banking panics of 1930 to 1931 , the banking acts of 1932 , and the banking holiday of 1933 .

One reason that Congress created the Federal Reserve, of course, was to act as a lender of last resort. Why did the Federal Reserve fail in this fundamental task? The Federal Reserve’s leaders disagreed about the best response to banking crises. Some governors subscribed to a doctrine similar to Bagehot’s dictum, which says that during financial panics, central banks should loan funds to solvent financial institutions beset by runs. Other governors subscribed to a doctrine known as real bills. This doctrine indicated that central banks should supply more funds to commercial banks during economic expansions, when individuals and firms demanded additional credit to finance production and commerce, and less during economic contractions, when demand for credit contracted. The real bills doctrine did not definitively describe what to do during banking panics, but many of its adherents considered panics to be symptoms of contractions, when central bank lending should contract. A few governors subscribed to an extreme version of the real bills doctrine labeled “liquidationist.” This doctrine indicated that during financial panics, central banks should stand aside so that troubled financial institutions would fail. This pruning of weak institutions would accelerate the evolution of a healthier economic system. Herbert Hoover’s secretary of treasury, Andrew Mellon, who served on the Federal Reserve Board, advocated this approach. These intellectual tensions and the Federal Reserve’s ineffective decision-making structure made it difficult, and at times impossible, for the Fed’s leaders to take effective action.

Among leaders of the Federal Reserve, differences of opinion also existed about whether to help and how much assistance to extend to financial institutions that did not belong to the Federal Reserve. Some leaders thought aid should only be extended to commercial banks that were members of the Federal Reserve System. Others thought member banks should receive assistance substantial enough to enable them to help their customers, including financial institutions that did not belong to the Federal Reserve, but the advisability and legality of this pass-through assistance was the subject of debate. Only a handful of leaders thought the Federal Reserve (or federal government) should directly aid commercial banks (or other financial institutions) that did not belong to the Federal Reserve. One advocate of widespread direct assistance was  Eugene Meyer , governor of the Federal Reserve Board, who was instrumental in the creation of the  Reconstruction Finance Corporation .

These differences of opinion contributed to the Federal Reserve’s most serious sin of omission: failure to stem the decline in the supply of money. From the fall of 1930 through the winter of 1933, the money supply fell by nearly 30 percent. The declining supply of funds reduced average prices by an equivalent amount. This deflation increased debt burdens; distorted economic decision-making; reduced consumption; increased unemployment; and forced banks, firms, and individuals into bankruptcy. The deflation stemmed from the collapse of the banking system, as explained in the essay on the  banking panics of 1930 and 1931 .

The Federal Reserve could have prevented deflation by preventing the collapse of the banking system or by counteracting the collapse with an expansion of the monetary base, but it failed to do so for several reasons. The economic collapse was unforeseen and unprecedented. Decision makers lacked effective mechanisms for determining what went wrong and lacked the authority to take actions sufficient to cure the economy. Some decision makers misinterpreted signals about the state of the economy, such as the nominal interest rate, because of their adherence to the real bills philosophy. Others deemed defending the gold standard by raising interests and reducing the supply of money and credit to be better for the economy than aiding ailing banks with the opposite actions.

On several occasions, the Federal Reserve did implement policies that modern monetary scholars believe could have stemmed the contraction. In the spring of 1931, the Federal Reserve began to expand the monetary base, but the expansion was insufficient to offset the deflationary effects of the banking crises. In the spring of 1932, after Congress provided the Federal Reserve with the necessary authority, the Federal Reserve expanded the monetary base aggressively. The policy appeared effective initially, but after a few months the Federal Reserve changed course. A series of political and international shocks hit the economy, and the contraction resumed. Overall, the Fed’s efforts to end the deflation and resuscitate the financial system, while well intentioned and based on the best available information, appear to have been too little and too late.

The flaws in the Federal Reserve’s structure became apparent during the initial years of the Great Depression. Congress responded by reforming the Federal Reserve and the entire financial system. Under the Hoover administration, congressional reforms culminated in the  Reconstruction Finance Corporation Act and the Banking Act of 1932 . Under the Roosevelt administration, reforms culminated in the  Emergency Banking Act of 1933 , the  Banking Act of 1933 (commonly called Glass-Steagall) , the  Gold Reserve Act of 1934 , and the  Banking Act of 1935 . This legislation shifted some of the Federal Reserve’s responsibilities to the Treasury Department and to new federal agencies such as the Reconstruction Finance Corporation and Federal Deposit Insurance Corporation. These agencies dominated monetary and banking policy until the 1950s.

The reforms of the 1930s, ’40s, and ’50s turned the Federal Reserve into a modern central bank. The creation of the modern intellectual framework underlying economic policy took longer and continues today. The Fed’s combination of a well-designed central bank and an effective conceptual framework enabled Bernanke to state confidently that “we won’t do it again.”

• 1  These business cycle dates come from the National Bureau of Economic Research . Additional materials on the Federal Reserve can be found at the website of the Federal Reserve Bank of St. Louis.

Bibliography

Bernanke, Ben. Essays on the Great Depression . Princeton: Princeton University Press, 2000.

Bernanke, Ben, “ On Milton Friedman's Ninetieth Birthday ," Remarks by Governor Ben S. Bernanke at the Conference to Honor Milton Friedman, University of Chicago, Chicago, IL, November 8, 2002.

Chandler, Lester V. American Monetary Policy, 1928 to 1941 . New York: Harper and Row, 1971.

Chandler, Lester V. American’s Greatest Depression, 1929-1941 . New York: Harper Collins, 1970.

Eichengreen, Barry. “The Origins and Nature of the Great Slump Revisited.” Economic History Review 45, no. 2 (May 1992): 213–239.

Friedman, Milton and Anna Schwartz. A Monetary History of the United States: 1867-1960 . Princeton: Princeton University Press, 1963.

Kindleberger, Charles P. The World in Depression, 1929-1939 : Revised and Enlarged Edition. Berkeley: University of California Press, 1986.

Meltzer, Allan. A History of the Federal Reserve: Volume 1, 1913 to 1951 . Chicago: University of Chicago Press, 2003.

Romer, Christina D. “The Nation in Depression.” Journal of Economic Perspectives 7, no. 2 (1993): 19-39.

Temin, Peter. Lessons from the Great Depression (Lionel Robbins Lectures) . Cambridge: MIT Press, 1989.

Written as of November 22, 2013. See disclaimer .

Essays in this Time Period

• Bank Holiday of 1933
• Banking Act of 1933 (Glass-Steagall)
• Banking Act of 1935
• Banking Acts of 1932
• Banking Panics of 1930-31
• Banking Panics of 1931-33
• Stock Market Crash of 1929
• Emergency Banking Act of 1933
• Gold Reserve Act of 1934
• Recession of 1937–38
• Roosevelt's Gold Program

Federal Reserve History

• History Classics
• Your Profile
• Find History on Facebook (Opens in a new window)
• Find History on Twitter (Opens in a new window)
• Find History on YouTube (Opens in a new window)
• Find History on Instagram (Opens in a new window)
• Find History on TikTok (Opens in a new window)
• This Day In History
• History Podcasts
• History Vault

5 Causes of the Great Depression

By: Patrick J. Kiger

Updated: April 17, 2023 | Original: March 10, 2022

The Great Depression , a worldwide economic collapse that began in 1929 and lasted roughly a decade, was a disaster that touched the lives of millions of Americans—from investors who saw their fortunes vanish overnight, to factory workers and clerks who found themselves unemployed and desperate for a way to feed their families.

Some people were reduced to selling apples on street corners to support themselves, while others lost their homes and were forced to survive in shanty towns that became known as “ Hoovervilles ,” a bitterly derisive reference to President Herbert Hoover, who in the early 1930s often claimed that “ prosperity was just around the corner ,” even as economic and trade policy mistakes and reluctance to provide government assistance to ordinary Americans worsened their predicament.

It’s not easy—even for people who’ve lived through the economic downturn caused by the COVID-19 pandemic—to grasp the depths of deprivation to which the economy sank during the Great Depression. When the unemployment rate peaked in 1933, 25.6 percent of American workers—one in four—found themselves unemployed. That’s a vastly higher rate than the 14.7 percent unemployment in April 2020, when the coronavirus forced businesses and factories to shut down.

Things were so bad that of all the days of unemployment experienced by individual American workers in American history, half occurred during the Great Depression, according to University of California, Irvine economics Professor Gary Richardson , who has done extensive research on that period and the subject of downturns in general.

“There have been a lot of ups and downs, but the Great Depression is really the biggest one,” he explains.

It’s not easy to explain exactly why such hard times happened. “For something to be as bad as the Great Depression, you really need multiple things going wrong, in the U.S. and around the world,” Richardson says.

Here are some of the things that historians and economists often point to as factors that combined to lead to the worst economic disaster in history.

1. Vulnerabilities in the Global Economy

In the 1920s, nations bounced back from the disruption and destruction caused by World War I , with factories and farms producing again, Richardson notes. But the nature of the economy in the United States and elsewhere shifted, as ordinary consumers buying durable goods such as appliances and cars—often on credit—became more and more important.

While that consumption created a lot of wealth for business owners, it also made them vulnerable to sudden shifts in consumer confidence. At the same time, nations that were producing a lot of products and exporting them became fierce competitors. “The war had eliminated a lot of the cooperation between nations that were required to run the international financial system,” Richardson says. That inability to work together at controlling problems meant that any one country’s efforts to control a downturn were less effective.

2. Financial Speculation

The 1920s economic boom helped breed a widespread belief that it was easy to get rich quick if you were bold enough to invest in the right opportunity at the right time. That’s one reason why so many ordinary Americans were fleeced by con artists who sold them on shady schemes , from Florida swampland and nonexistent oil deposits to the notion of buying Spanish mail coupons and redeeming them for U.S. stamps to profit on the weaker Spanish currency.

But the riskiest gambling took place on Wall Street. Investors increasingly bought stocks on margin, in which they put down as little as 10 percent of the price of a stock, and borrowed the rest of the money, with their stock itself as collateral. Corporate stocks soared, and brokers made huge commissions. 

HISTORY Vault: World War I Documentaries

Stream World War I videos commercial-free in HISTORY Vault.

But the bubble eventually had to burst. It did that on Black Monday, October 28, 1929 , when the Dow Jones average declined nearly 13 percent in one day. That started a period of catastrophic declines that destroyed almost half of the Dow’s value in a single month. By 1932, at the nadir of the financial crisis, the nation’s public companies had lost 89 percent of their value. Scores of investors were ruined, and companies found it difficult to finance their operations.

“The stock market crash did two things,” explains Mary Eschelbach Hansen , a professor of economics at American University. “It had a wealth effect on consumption (when people’s wealth falls, they consume less), and it also made consumers and firms pessimistic. Then came a series of banking panics and failures. Households lost more of their wealth, and the lines of credit that firms used were disrupted. Unemployment soared.”

3. Blunders by the Fed

The Federal Reserve System, created in 1913, was supposed to ensure the nation’s economic stability by controlling the money supply. But the still-new institution’s policies in the 1920s not only failed to stop the Great Depression but actually may have helped to cause it.

“There was a drastic 67 percent increase in the money supply between 1921 and 1929,” explains Daniel J. Smith , a professor of economics and finance and director of the Political Economy Research Institute at Middle Tennessee State University.

That policy led to declining interest rates, which encouraged people to borrow and overinvest. “It also led to unchecked speculation in the formation of a bubble in the stock market,” Smith says. “Normally, overinvestment would lead to rising interest rates, which would act as a natural break to prevent a bubble from forming. This didn’t occur due to the easy monetary policies of the young Fed.”

But eventually, in 1929, the Fed’s board worried that speculation was out of control , and abruptly slammed on the breaks by contracting the money supply and raising interest rates, Smith notes.

The Fed’s move to cool the stock market worked a little too well. “They got the stock market to come down,” Richardson explains. “But then it came down a lot, and it came down very quickly.”

4. The Gold Standard

Back in 1929, the United States—like many other countries at the time—was on the Gold Standard, with the dollar redeemable in gold and pegged to its value. But after the Wall Street crash, nervous investors began to trade their dollars for gold. 

As former Fed chairman Ben Bernacke noted in a 2004 lecture , the Fed then moved to jack up interest rates higher to protect the dollar’s value. But those high-interest rates made it difficult for businesses to borrow the money that they needed to survive, and many ended up closing their doors instead.

5. The Smoot-Hawley Act

Trade protectionists in Congress enacted the Smoot-Hawley Act , which was written in early 1929, while the economy still seemed to be going strong. But after the Wall Street Crash weakened the economy, President Hoover still signed it into law in 1930. The law raised U.S. tariffs by an average of 16 percent, in an effort to shield American factories from the competition with foreign countries’ lower-priced goods. But the move backfired when other countries put tariffs on U.S. exports.

“If you're a country and you impose tariffs that can be good for your domestic industries because your domestic energy might produce more for home consumption,” Richardson says. “But if other countries retaliate, then it could be bad for everybody.”

Combined: A Perfect Economic Storm 

The really unlucky thing was that all those factors combined in a sort of perfect economic storm, whose devastating effects had long-lasting repercussions. As Richardson notes, the U.S. economy didn’t again reach full employment until 1940—just in time for World War II to disrupt consumption with rationing needed to ensure that the military had enough resources. Life didn’t really get back to normal until after the war when the victorious United States emerged as the world’s leading economy.

Sign up for Inside History

Get HISTORY’s most fascinating stories delivered to your inbox three times a week.

By submitting your information, you agree to receive emails from HISTORY and A+E Networks. You can opt out at any time. You must be 16 years or older and a resident of the United States.

More details : Privacy Notice | Terms of Use | Contact Us

Cause and Effects of The Great Depression

Introduction.

The great Depression took place in America during the 1920s and its effects were unprecedented as it caused poverty and suffering upon the society.

Many believe that that the depression was caused by the U.S. stock-market crash that took place in 1929. Nonetheless, there is no consensus on its cause as other factors are also acceptable. The economic devastation of the 1920s led to the Great Depression and brought a tragedy for the whole society.

Causes of The Depression

Many causes have been put forward to explain the causes of the great Depression over which the economists have disagreed. However, one thing that cannot be disputed is that the Depression had major impacts upon the country and the lives of people.

Crash of stock market

The crash of the stock market in 1929 ushered in the Great Depression. The capital in America was represented by stocks. There were easy-money policies that caused the stocks prices to go very high and this led to a big speculation that made people invest all their money in the stock market.

Eventually, the price of the stocks went down sharply and people started selling their stocks in panic. The number of stocks available for sale was higher that the number of people willing to buy and eventually the market crashed (Great Depression, 2008).

Uneven distribution of prosperity

The 1920s saw the American economy rise but the prosperity was unevenly distributed and the farmers as well as the untrained laborers were largely excluded. It therefore led to the nation having a greater production capacity and could not match in consuming the products.

Moreover, the policies of the Republican administration in regards to war-debts and tariff had led to a decline in market for the American goods (Great Depression, 2008).

Effects of The Depression

The effects of the Great Depression were felt both at home and abroad. No one escaped its reeling effects. For example, countries in Europe were affected greatly as their economies were hit hard. In Germany, the economic blow led to social dislocation that is alleged to have played a major role bringing Adolf Hitler to power (Great Depression, 2008).

Unemployment

When the Great Depression set in many people lost their jobs. The unemployment levels rose as many factories closed and up to about 16 million people had lost their jobs between 1932 and 1933 (Great Depression, 2008). The Great Depression compares to the economic recession that took place in 2007 in American and its effects felt on a global scale.

For instance, the following words by president Obama show the similarities “Even though economists may say the recession officially ended last year, obviously for the millions of people who are still out of work… it’s still very real for them” (Hill, 2010).

Massive poverty

Consequently, job losses and loss of money in the stock market the people fell into massive levels of poverty. The people did not have a source of income and suffered a great deal. The country’s economy suffered too” The gross national product declined from the 1929 figure of $103,828,000,000 to $55,760,000,000 in 1933” (Great Depression, 2008, par. 2).

The suffering led economic hardships as well as physical, emotional, emotional and cognitive sufferings to the people because the Depression was a big tragedy hence they exhibited signs that people going through other crises exhibit (Barr, 2005).

The Great Depression led to untold suffering to millions of Americans as well as the devastation of the country’s economy. The effects extended to other countries as well due to international trade just as it happened during the recent economic down turn. No country is in isolation and its activities affect other countries too even if they do not have a hand in causing the problems.

It therefore follows that countries must take precautions to prevent an event like the Great Depression by learning its causes as well as its effects in order to minimize future damage or suffering in case of a similar tragedy.

Reference List

Barr, J.G. (2005). Predicting and Managing Crisis Behavior.

Great Depression. (2008). Retrieved from EBSCOhost database.

Hill, P. (2010). Recession over a year, but recovery not felt . The Washington Times . P1, 1. Web.

• Chicago (A-D)
• Chicago (N-B)

IvyPanda. (2023, December 11). Cause and Effects of The Great Depression. https://ivypanda.com/essays/cause-and-effects-of-the-great-depression/

"Cause and Effects of The Great Depression." IvyPanda , 11 Dec. 2023, ivypanda.com/essays/cause-and-effects-of-the-great-depression/.

IvyPanda . (2023) 'Cause and Effects of The Great Depression'. 11 December.

IvyPanda . 2023. "Cause and Effects of The Great Depression." December 11, 2023. https://ivypanda.com/essays/cause-and-effects-of-the-great-depression/.

1. IvyPanda . "Cause and Effects of The Great Depression." December 11, 2023. https://ivypanda.com/essays/cause-and-effects-of-the-great-depression/.

Bibliography

IvyPanda . "Cause and Effects of The Great Depression." December 11, 2023. https://ivypanda.com/essays/cause-and-effects-of-the-great-depression/.

• The stock market crash of 1929
• The Great Depression of 1929
• Historical Comparison of 1929 Crash and Present
• The Roaring 1920s
• Great Depression' History: Causes and Regulations
• Historical Context of the "King Kong" (1933)
• Canada 1929-39: The Wages of Relief by Strikwerda
• The Great Depression Crisis
• Great Depression in the United States
• Economic Depression in USA
• Salem Witch Trials Causes
• Market Revolution
• United States Arm Control
• Valley Archive Collections
• A Closer Look at the History of the Colonial America

Home — Essay Samples — History — History of the United States — Great Depression

Essays on Great Depression

Great depression essay topic examples, argumentative essays.

Argumentative essays on the Great Depression require you to take a stance on a specific aspect of this historical event and provide evidence to support your viewpoint. Consider these topic examples:

• 1. Argue for the primary causes of the Great Depression, emphasizing the role of economic policies, banking practices, and global factors in triggering the crisis.
• 2. Debate the effectiveness of New Deal programs in alleviating the suffering of Americans during the Great Depression, discussing their long-term impact on the nation's economy and social fabric.

Example Introduction Paragraph for an Argumentative Great Depression Essay: The Great Depression remains a defining moment in American history, marked by economic turmoil and widespread suffering. In this argumentative essay, we will examine the primary causes of the Great Depression, focusing on economic policies, banking practices, and global factors that contributed to this devastating crisis.

Example Conclusion Paragraph for an Argumentative Great Depression Essay: In conclusion, the analysis of the Great Depression's causes underscores the complexity of this historical event. As we reflect on the lessons learned from this era, we are reminded of the importance of sound economic policies and vigilant oversight in preventing future economic crises.

Compare and Contrast Essays

Compare and contrast essays on the Great Depression involve analyzing the similarities and differences between various aspects of the era, such as its impact on different countries or the approaches taken to address the crisis. Consider these topics:

• 1. Compare and contrast the effects of the Great Depression on the United States and Germany, examining the economic, social, and political consequences in both nations.
• 2. Analyze and contrast the approaches taken by Franklin D. Roosevelt's New Deal and Adolf Hitler's economic policies in response to the Great Depression, exploring their divergent ideologies and outcomes.

Example Introduction Paragraph for a Compare and Contrast Great Depression Essay: The Great Depression had a global impact, affecting nations differently and prompting diverse responses. In this compare and contrast essay, we will explore the effects of the Great Depression on the United States and Germany, examining the economic, social, and political consequences in both countries.

Example Conclusion Paragraph for a Compare and Contrast Great Depression Essay: In conclusion, the comparison and contrast of the Great Depression's effects on the United States and Germany reveal the profound and lasting consequences of economic crises. As we study these different experiences, we gain insights into the resilience of nations facing adversity.

Descriptive Essays

Descriptive essays on the Great Depression allow you to provide detailed accounts and analysis of specific aspects, events, or individuals during this period. Here are some topic ideas:

• 1. Describe the everyday life of a typical American family during the Great Depression, detailing their struggles, coping mechanisms, and aspirations for a better future.
• 2. Paint a vivid picture of a significant event from the Great Depression era, such as the Dust Bowl or a famous protest, discussing its impact on society and the lessons learned.

Example Introduction Paragraph for a Descriptive Great Depression Essay: The Great Depression left an indelible mark on the lives of ordinary Americans, shaping their daily experiences and aspirations. In this descriptive essay, we will delve into the everyday life of a typical American family during this challenging period, exploring their struggles and hopes for a brighter future.

Example Conclusion Paragraph for a Descriptive Great Depression Essay: In conclusion, the descriptive exploration of a typical American family's life during the Great Depression reminds us of the resilience and determination of individuals in the face of adversity. As we reflect on their experiences, we are inspired by their unwavering spirit.

Persuasive Essays

Persuasive essays on the Great Depression involve advocating for specific actions, policies, or changes related to economic recovery, social welfare, or preventing future economic crises. Consider these persuasive topics:

• 1. Persuade your audience of the importance of implementing social safety net programs to prevent another Great Depression-like economic catastrophe, highlighting the potential benefits and challenges of such initiatives.
• 2. Advocate for increased financial literacy education in schools as a means to empower individuals with the knowledge and skills to make informed financial decisions, potentially preventing future economic crises.

Example Introduction Paragraph for a Persuasive Great Depression Essay: The lessons of the Great Depression continue to shape economic and social policies today. In this persuasive essay, I will make a compelling case for the implementation of social safety net programs aimed at preventing future economic catastrophes like the Great Depression, emphasizing the potential benefits and challenges of such initiatives.

Example Conclusion Paragraph for a Persuasive Great Depression Essay: In conclusion, the persuasive argument for social safety net programs underscores the importance of proactive measures to safeguard against economic crises. As we advocate for change, we contribute to a more resilient and equitable society.

Narrative Essays

Narrative essays on the Great Depression allow you to share personal stories, experiences, or observations related to this historical period, your family's history during the era, or the impact of the Great Depression on your community. Explore these narrative essay topics:

• 1. Narrate a family story or anecdote passed down through generations about how your family coped with the challenges of the Great Depression, highlighting the resilience and resourcefulness of your ancestors.
• 2. Share a personal narrative of how the Great Depression era shaped the values and principles of your community, discussing the lasting impact on your town or neighborhood.

Example Introduction Paragraph for a Narrative Great Depression Essay: The Great Depression was not just a historical event; it was a period that defined the experiences and values of countless individuals and communities. In this narrative essay, I will share a family story that has been passed down through generations, illustrating how my family coped with the challenges of this era and the lasting impact on our values.

Example Conclusion Paragraph for a Narrative Great Depression Essay: In conclusion, the narrative of my family's experience during the Great Depression serves as a reminder of the resilience and resourcefulness that emerged during this challenging period. As we reflect on our history, we find inspiration in the strength of those who came before us.

Lonely Character of Curleys Wife

Social issues in cinderella man, made-to-order essay as fast as you need it.

Each essay is customized to cater to your unique preferences

+ experts online

Grapes of Wrath Intercalary Chapter Summary

The major causes and effects of the great depression in the united states, the great depression: hoover's and roosevelt's approaches, the start and end of the great depression in america, let us write you an essay from scratch.

• 450+ experts on 30 subjects ready to help
• Custom essay delivered in as few as 3 hours

New Deal Programs During The Great Depression

Impact and causes of the great depression, an analysis of the causes of the great depression, the great depression and its negative effects on the united states, get a personalized essay in under 3 hours.

Expert-written essays crafted with your exact needs in mind

The Great Depression in The USA

The great depression: america's biggest financial collapse in economic history, john steinbeck's involvement in the great depression and vietnam war, the great depression in the us: causes and solutions applied, impact of the great depression on women, the causes and effects of the great depression, the factors of the end of the great depression, relief, recovery and reform programs in the usa: the new deal, the culture of poverty in america during the great depression, the current american economic system: a direct result of the roaring twenties and the great depression, the objectives of franklin roosevelt's new deal program after the great depression, the great depression and the new deal, investigation of 1929 stock market crash, the factors that opened the door for the united states to deal with the great depression at the start of world war ii, the great depression in ottawa, migrant mother by dorothea lange – a picture worth a thousand words, analysis of the effects of the wall street crash of 1929, the great depression as the important factor in nazis empowerment in 1933, analysis of the wall street crash of 1929 as a cause of the great depression in america, depiction of poverty in eugenia collier’s marigolds and thomas hart benton’s cotton pickers.

1929 - c. 1939

Europe, United States

Franklin D. Roosevelt: As the President of the United States from 1933 to 1945, Roosevelt implemented the New Deal, a series of economic and social programs aimed at alleviating the effects of the Great Depression. John Steinbeck: An influential American author, Steinbeck wrote novels such as "The Grapes of Wrath" (1939), which depicted the plight of migrant workers during the Great Depression. His work shed light on the social and economic injustices faced by many Americans during that time. Dorothea Lange: A renowned documentary photographer, Lange captured powerful images of individuals and families affected by the Great Depression. Her iconic photograph "Migrant Mother" became a symbol of the hardships faced by ordinary Americans. Eleanor Roosevelt: The wife of President Franklin D. Roosevelt, Eleanor Roosevelt was a prominent advocate for social and economic reform. She played an active role in promoting the New Deal policies and was a strong voice for marginalized communities during the Great Depression.

The Great Depression, one of the most severe economic crises in history, occurred during the 1930s. It started in the United States with the stock market crash of 1929, often referred to as "Black Tuesday." This event led to a chain reaction of economic downturns worldwide, resulting in high unemployment rates, widespread poverty, and a significant decline in industrial production. The effects of the Great Depression were felt across various sectors, including agriculture, manufacturing, and banking.

The Great Depression was preceded by a series of factors that set the stage for its occurrence. In the aftermath of World War I, the global economy experienced a period of instability and rapid growth known as the Roaring Twenties. However, beneath the surface of apparent prosperity, there were underlying vulnerabilities. One of the key factors contributing to the Great Depression was the rampant speculation in the stock market, fueled by easy credit and speculative investments. This speculative bubble eventually burst in October 1929, triggering the stock market crash and initiating a chain reaction of economic collapse. Additionally, international economic imbalances played a role in exacerbating the crisis. Protectionist trade policies, war reparations, and a decline in global trade contributed to a decline in industrial production and widespread unemployment. The collapse of the banking system further deepened the crisis, as bank failures wiped out people's savings and caused a severe liquidity crisis.

Stock Market Crash: On October 29, 1929, known as Black Tuesday, the stock market experienced a catastrophic crash, signaling the start of the Great Depression. This event led to a massive loss of wealth and investor confidence. Dust Bowl: In the early 1930s, severe drought and poor farming practices led to the Dust Bowl in the Great Plains region of the United States. Dust storms ravaged the land, causing agricultural devastation and mass migration of farmers to seek better opportunities elsewhere. New Deal: In response to the crisis, President Franklin D. Roosevelt implemented the New Deal, a series of programs and reforms aimed at providing relief, recovery, and reform. This included measures such as the creation of jobs, financial regulations, and social welfare initiatives.

Economic Collapse: The Great Depression plunged the global economy into a severe downturn. Industries faced widespread bankruptcies, trade declined, and unemployment soared. Poverty levels skyrocketed, leaving many families without basic necessities. Social Unrest: The economic hardship led to increased social unrest. Breadlines, shantytowns, and soup kitchens became common sights as people struggled to survive. Homelessness and hunger became prevalent, straining social structures. Global Impact: The Great Depression had a global reach, affecting countries around the world. International trade declined, leading to a sharp decline in exports and imports. This interconnectedness contributed to a worldwide economic slowdown. Political Shifts: The economic crisis paved the way for significant political shifts. Governments faced pressure to address the crisis, resulting in the rise of interventionist policies and increased government involvement in the economy. This gave birth to the concept of the welfare state. Cultural and Artistic Expression: The Great Depression influenced art, literature, and music, reflecting the hardships and struggles of the era. Artists and writers depicted the human suffering and the search for hope amid despair.

Literature: John Steinbeck's novel "The Grapes of Wrath" (1939) is a powerful depiction of the Great Depression's impact on migrant workers in the United States. It follows the Joad family as they face poverty, displacement, and exploitation while searching for a better life. The book explores themes of resilience, social injustice, and the human spirit in the face of adversity. Photography: The Farm Security Administration (FSA) hired photographers, including Dorothea Lange and Walker Evans, to document the effects of the Great Depression. Their iconic photographs, such as Lange's "Migrant Mother," captured the hardships faced by rural communities, evoking empathy and raising awareness about the human toll of the economic crisis. Films: Movies like "The Grapes of Wrath" (1940) and "It's a Wonderful Life" (1946) depicted the struggles and resilience of individuals and communities during the Great Depression. These films offered social commentary, showcased the impact of economic hardship, and explored themes of hope, perseverance, and the importance of human connections. Music: Artists like Woody Guthrie composed folk songs that reflected the experiences of those affected by the Great Depression. Guthrie's "This Land Is Your Land" and "Dust Bowl Blues" expressed the struggles of the working class and the desire for a more equitable society. Art: Painters such as Grant Wood and Thomas Hart Benton created works that captured the hardships and rural landscapes of the Great Depression. Wood's painting "American Gothic" became an iconic representation of the era, symbolizing the resilience and determination of the American people.

1. The Gross Domestic Product (GDP) of the United States dropped by approximately 30% during the Great Depression. 2. Between 1929 and 1932, over 9,000 banks in the United States failed, causing immense financial instability. 3. The poverty rate in the United States surged during the Great Depression. By 1933, around 15 million Americans, representing approximately 30% of the population at that time, were living below the poverty line.

The topic of the Great Depression holds significant importance as it marks a critical period in global history that profoundly impacted economies, societies, and individuals worldwide. Exploring this topic in an essay provides valuable insights into the causes, consequences, and responses to one of the most severe economic downturns in modern times. Understanding the Great Depression is essential to grasp the complexities of economic cycles, financial systems, and government policies. It allows us to reflect on the vulnerabilities of economies and the potential ramifications of economic crises. Moreover, studying the Great Depression enables us to analyze the various social, political, and cultural transformations that took place during that era, including the rise of social welfare programs, labor movements, and governmental interventions. By delving into this topic, we gain valuable lessons about resilience, adaptability, and the role of leadership during challenging times. Exploring the experiences of individuals and communities during the Great Depression also helps us empathize with their struggles and appreciate the importance of collective efforts to overcome adversity.

1. Bernanke, B. S. (1983). Nonmonetary effects of the financial crisis in the propagation of the Great Depression. The American Economic Review, 73(3), 257-276. 2. Eichengreen, B. (1992). Golden fetters: The gold standard and the Great Depression, 1919-1939. Oxford University Press. 3. McElvaine, R. S. (1993). The Great Depression: America, 1929-1941. Times Books. 4. Rothbard, M. N. (2000). America's Great Depression. Ludwig von Mises Institute. 5. Badger, A. J. (2014). The Great Depression as a revolution. The Journal of Interdisciplinary History, 44(2), 156-174. 6. Temin, P. (2010). The Great Depression: Lessons for macroeconomic policy today. MIT Press. 7. Kennedy, D. M. (1999). Freedom from fear: The American people in depression and war, 1929-1945. Oxford University Press. 8. Leuchtenburg, W. E. (2015). The FDR years: On Roosevelt and his legacy. Columbia University Press. 9. Roth, B. (2017). The causes and consequences of the Great Depression. OpenStax. 10. Galbraith, J. K. (1997). The Great Crash, 1929. Houghton Mifflin.

Relevant topics

• Industrial Revolution
• Westward Expansion
• Pearl Harbor
• Civil Rights Movement
• Manifest Destiny
• American Revolution
• Frederick Douglass

By clicking “Check Writers’ Offers”, you agree to our terms of service and privacy policy . We’ll occasionally send you promo and account related email

No need to pay just yet!

We use cookies to personalyze your web-site experience. By continuing we’ll assume you board with our cookie policy .

• Instructions Followed To The Letter
• Deadlines Met At Every Stage
• Unique And Plagiarism Free

If you're seeing this message, it means we're having trouble loading external resources on our website.

If you're behind a web filter, please make sure that the domains *.kastatic.org and *.kasandbox.org are unblocked.

To log in and use all the features of Khan Academy, please enable JavaScript in your browser.

Course: US history   >   Unit 7

• The presidency of Herbert Hoover
• The Great Depression

FDR and the Great Depression

• The New Deal
• Democrat Franklin Delano Roosevelt led the nation through the Great Depression.
• His signature domestic legislation, the New Deal , expanded the role of the federal government in the nation’s economy in an effort to address the challenges of the Great Depression.
• He was elected to the presidency four times, serving from March 1933 until his death in office in April 1945.

Roosevelt's life and long career

Roosevelt and the new deal, what do you think.

• On Roosevelt's early life, see Geoffrey C. Ward, Before the Trumpet: Young Roosevelt 1882-1905 , (New York: HarperCollins, 1985).
• For more on Roosevelt's life and struggle with polio, see Frank Freidel, Franklin D. Roosevelt: A Rendezvous with Destiny , (New York: Back Bay Books, 1990).
• For "the forgotten man," see Franklin D. Roosevelt, " The 'Forgotten Man' Speech ," April 7, 1932. For "a new deal," see Franklin D. Roosevelt, “ Address Accepting the Presidential Nomination at the Democratic National Convention in Chicago ", July 2, 1932. For "nothing to fear but fear itself," see Franklin D. Roosevelt, " First Inaugural Address ," March 4, 1933.
• For “bold, persistent experimentation,” see Franklin D. Roosevelt, “ Address at Oglethorpe University in Atlanta, Georgia ," May 22, 1932.
• On the fireside chats, see Betty Houchin Winfield, FDR and the News Media , (Urbana: University of Illinois Press, 1990).
• On the court packing plan, see Jeff Shesol, Supreme Power: Franklin Roosevelt vs. the Supreme Court , (New York: W.W. Norton & Co., 2010).

Want to join the conversation?

• Upvote Button navigates to signup page
• Downvote Button navigates to signup page
• Flag Button navigates to signup page

What is the Great Depression?

Key factors that caused the great depression, government response and policy failures.

• Lessons learned from the Great Depression
• Could the Great Depression happen again? 

Unraveling the Causes of the Great Depression

Paid non-client promotion: Affiliate links for the products on this page are from partners that compensate us (see our advertiser disclosure with our list of partners for more details). However, our opinions are our own. See how we rate investing products to write unbiased product reviews.

• While the October 1929 stock market crash triggered the Great Depression, multiple factors turned it into a decade-long economic catastrophe.
• Overproduction, executive inaction, ill-timed tariffs, and an inexperienced Federal Reserve all contributed to the Great Depression.
• The Great Depression’s legacy includes social programs, regulatory agencies, and government efforts to influence the economy and money supply. 

Periods of economic downturn are a normal part of the business cycle, with the average US recession lasting around 10 months. But the Great Depression was a catastrophe, lasting nearly a decade and ushering in a new era of government regulations still seen today. 

Following the exorbitant economic growth of the 1920s, poor policy decisions based on stock market speculation and overproduction by businesses resulted in a large-scale economic crisis known as the Great Depression. Its causes aren't entirely dissimilar to those of recession, though compounded on a grander scale. 

Yet, if the causes of the Great Depression can be seen in other recessions, can the economy fall into another depression? 

Let's explore the economic policies leading to the Great Depression, the impact of the 1929 stock market crash, and the impact of the crisis on global economies. 

Check out Business Insider's guide to the best free stock trading apps >>

The Great Depression was the worst economic period in US history. Starting in 1929, when the stock market crashed, it lasted until 1939 when the US began mobilizing for World War II. Industrial production fell by nearly 47%, and gross domestic production (GDP) declined by 30%. Almost half of US banks collapsed, stock shares traded at a third of their previous value, and nearly one-quarter of the population was jobless.

Despite popular belief, the stock market crash of 1929 was only the start of the crisis, not the sole perpetrator. The Great Depression resulted from a multitude of different complex policy and economic factors, including ill-timed tariffs and misguided moves by the young Federal Reserve. 

"The crash was not a cause, but a triggering event," says Barry M. Mitnick, a professor of business administration and public and international affairs at the University of Pittsburgh's Katz Graduate School of Business .

The average US recession between WWII and today is 10 months, according to data from the National Bureau of Economic Research . However, the Great Depression ravaged the economy for roughly a decade.

Economic landscape preceding the Depression

The lavish economy of the "Roaring Twenties" preceded the crash of the Great Depression. Between 1922 and 1929 was a time of exorbitant economic growth.

The gross national product grew at an average annual rate of 4.7%, while the unemployment rate dropped from 6.7% to 3.2%. Total wealth in the US more than doubled, though most of that growth was experienced by the wealthiest Americans. Individual Americans also started investing in the market in a big way. 

But all was not as roaring as it seemed. Consumers were spending more than they could afford, and companies over-produced to keep up with the demand. Financial institutions became heavily involved in stock market speculation. In some cases, they created subsidiaries that offered their own securities. Brokers secretly sold their own stocks — what would be a clear conflict of interest today.

Still, the stock market stubbornly kept on climbing. That is, until October 1929, when it all came tumbling down.

The stock market crash of 1929

The stock market crash of 1929 wasn't a one-day event but rather a week of escalating panic. On October 24 — a day now known as Black Thursday — the markets opened a staggering 11% lower than the previous day. Investors who had caught on to the market's overheated situation had begun rapidly selling their shares, sending a shockwave through Wall Street. 

The market rallied briefly, but share prices plunged another 13% the following Monday (aka Black Monday). Many investors couldn't make their margin calls. Panic caused more investors to sell, further accelerating the crash. 

"The system fell back on itself like a house of cards," says Mitnick.

The stock market lost more than 85% of its value from 1929 to July 1932. The Dow Jones Industrial Average sank from a 381.17 high in 1929 to a 41.22 low in 1932. 

Oversupply and overproduction problems

Mass production sparked the consumption boom of the 1920s, leading businesses to overproduce products. Even before the crash, businesses had to start selling goods at a loss. 

A similar crisis was occurring in agriculture. Farmers were in debt during World War I after buying more machinery to boost production. However, in the post-war economy, they produced more supply than consumer needs. Land and crop values plummeted. 

In turn, the price of agricultural and industrial products dropped, which decimated profits and hurt already over-extended enterprises. 

Low demand, high unemployment

During periods of economic recession, consumers stop spending, which forces companies to cut production. With less output, companies start laying people off, raising unemployment.

A healthy unemployment rate in the US hovers between 3% to 5%. During the peak of the Great Depression, the unemployment rate peaked at 24.9% in 1933 — 12.8 million Americans out of a population of 125.6 million — and it was still as high as 17.2% in 1939 . 

Banking failures and financial panic

Weak regulations had opened the way for wild speculation on stock exchanges. Being "in the market" was the "in" thing, but many investors weren't making choices based on research or fundamentals. Rather, they were just gambling that the stock would keep going up.

Even worse, many people bought shares on margin not realizing they'd be on the hook for the whole amount if the price fell. The result was inflated prices, with shares selling for more money than justified by their companies' actual earnings.

Moreover, the Fed followed the " liquidationist " policy of then-Treasury Secretary Andrew Mellon, in which the central bank stands aside and lets troubled banks collapse. Theoretically, a stronger, sounder banking system would emerge. The policy ended up taking out smaller banks, not necessarily bad banks. By 1933, 11,000 of them had failed, wiping out the savings of millions.

Ultimately, the decrease in the money supply led to deflation. That, in turn, caused sky-high increases in real interest rates, which choked off any chances of companies investing or expanding.

International trade and tariff policies

As demand declined, big business and agriculture, feeling the effect of cheap goods from abroad, lobbied for protection. The role of trade tariffs in the Great Depression negatively impacted the interconnectedness of global financial systems. Congress obliged with the United States Tariff Act of 1930, aka the Smoot-Hawley bill , which raised tariffs on foreign products by about 20%. 

Multiple countries retaliated with their own tariffs on US goods. The inevitable result was a trade meltdown. In the next two years, US imports fell 40%. 

No markets abroad. No demand at home. Small wonder that economic activity ground to a standstill. 

The role of monetary policy

During the Great Depression and years after, blame initially fell on the private sector, with accusations that banks had recklessly depleted their reserves. However, a groundbreaking 1963 study by economists Milton Friedman and Anna Schwartz revealed that the Fed's monetary policy was largely to blame. 

In 2002, Ben Bernanke, a Board of Governors of the Federal Reserve member, said as much . "I would like to say to Milton and Anna: Regarding the Great Depression. You're right; we did it. We're very sorry. But thanks to you, we won't do it again," Bernanke said in an address during Friedman's 90th birthday. 

Federal Reserve's mistakes during the Great Depression contributed to the heady expansion. Interest rates were kept low in the early to mid-1920s, then increased after the crash, doubling in 1931 from their pre-crash levels. The idea was to discourage lending and borrowing by stopping the "wild speculating" that encouraged the market to bubble and burst.

Fiscal policies and unemployment

President Herbert Hoover's response to the economic crisis was tardy. A believer in minimal government intervention, which he called "rugged individualism," Hoover considered direct public relief character-weakening. He did eventually start spending and launched lending and public works projects. Still, according to many economists, it was too little, too late.

The severity of the Depression forced the government to take a more hands-on relief effort. Increased government spending through direct relief programs and infrastructure projects provided more jobs, while simultaneously helping struggling families access unemployment benefits and welfare. However, these programs were funded by controversial budget deficits aimed at re-stimulating the economy. 

Banking reforms were also enacted to regulate financial institutions and prevent further reckless practices. Prior to the crash, bank deposits lacked protection and led to folks withdrawal ing their savings in a panic. Thus, policymakers created the Federal Deposit Insurance Corporation (FDIC) to reduce bank runs and restore trust in the banking system. 

Concluding analysis: Lessons learned from the Great Depression

The new deal.

When Franklin D. Roosevelt became president in 1933, he quickly began pushing through Congress a series of programs and projects called the New Deal . How much the New Deal actually alleviated the depression is a matter of some debate, as production remained low and unemployment high throughout the decade. 

But the New Deal did more than attempt to stabilize the economy, relieve jobless Americans, create previously unheard of safety net programs, and regulate the private sector. It also reshaped the role of government with programs that are now part of the fabric of American society. 

Among the New Deal's accomplishments:

• Worker protections , like the National Labor Relations Act, which legitimized unions, collective bargaining, and other employee rights
• Public works programs , aimed at providing employment via construction projects — a win-win for society and individuals 
• Individual safety nets , such as the Social Security Act of 1935, which created the pension system still with us today, and unemployment insurance

A legacy of government regulation

New Deal legislation ushered in a new era of government regulations — and the underlying concept that even a free-enterprise system can use some federal oversight. Milestone measures include:

• The Glass-Steagall Act of 1933 , which separated investment banking from commercial banking to prevent conflicts of interest and the sort of speculation that led to the 1929 crash (it was repealed in 1999, though some of its regulations remain in the Dodd-Frank Act of 2010) 
• The Federal Deposit Insurance Corporation (FDIC) oversees banks and protects consumer accounts, via FDIC deposit insurance
• The establishment of the Securities and Exchange Commission  (SEC) to oversee the stock market, create securities legislation, and protect investors from fraudulent practices

"The biggest legacy is a change in the view of government's responsibilities — that it should take an active part in addressing economic and social problems," says Aleksandar Tomic, program director of Master of Science in Applied Economics at Boston College .

The Great Depression — Frequently asked questions (FAQs)

Many economists and historians believe that the Great Depression could have been avoided, or at least mitigated, with better policy decisions and quicker government actions. Some economic downturns were inevitable due to excessive stock market speculation and consumer overspending. 

The Great Depression lasted until 1939 when the US began mobilizing for World War II. The enactment of the New Deal and the increased wartime spending helped the US economy to recover as countries abandoned the gold standard and initiated more aggressive fiscal and monetary policies. 

The Great Depression had a significant and lasting impact on global economies. The US raised tariffs on foreign products by about 20%, causing some countries to implement their own tariffs on US goods. The trade meltdown, severe deflation, and high unemployment affected not only the US but other countries, including Europe, Japan, and Latin America. The interconnectedness of global financial systems suffered a major blow, leading to significant political changes in many countries. 

The social consequences of the Great Depression devastated everyday people who faced widespread panic amidst increased homelessness, poverty, and a loss of savings due to bank failures. Families struggled to afford basic necessities like food and shelter. Soup kitchens and bread lines were common as economic hardship led to significant unemployment and financial insecurity. 

Could the Great Depression happen again? 

"The highest unemployment rate since the Great Depression" screamed headlines in April 2020, when the jobless level hit 14.7% of the US population. Since the initial spike, unemployment rates have dropped back to healthy rates, sitting at 3.9% as of February 2024 . 

January 2024, the S&P 500 reached its first record high in two years and officially became a bull market after its low point in October 2022. Amidst the AI boom, mega-cap tech stocks like Nvidia have surged more than 264% and are expected to keep growing. 

The Feds raised interest rates back in 2022 to stem rising inflation . But with inflation receding and after its December 2023 meeting, the US Federal Reserve will likely be cutting interest multiple times by the end of 2024.

Though there's by no means a consensus, many economists argue that another such catastrophe, at least one caused by internal factors, is unlikely. That's largely because the contemporary federal government can draw on many more policy and monetary tools, ranging from unemployment compensation to easing the money supply.

As, indeed, it has done. Take the Great Recession of 2007 to 2009, for example. It, too was kicked into high gear by a financial-market crisis, the subprime loan meltdown. But the Fed quickly slashed interest rates. And thanks largely to a massive government bailout of the banking, insurance, and automobile industries and an $800 billion-plus stimulus package, the downturn officially lasted less than two years. The economy recovered — albeit sluggishly — and eventually sparked a record-breaking bull market.

Though economic downturns may trigger memories of the Great Depression, nowadays, says Brad Cornell, managing director of Berkeley Research Group, "we know enough and can respond quickly enough so that these sorts of endogenous downward spirals are not going to happen again."

• Main content

The Great Depression: America 1929-1941 Essay Questions

By robert s. mcelvaine, essay questions.

These notes were contributed by members of the GradeSaver community. We are thankful for their contributions and encourage you to make your own.

Written by people who wish to remain anonymous

What was the primary cause of the great depression according to Robert Mcelvaine?

Robert Mcelvaine describes the unequal distribution of consumable income as the primary cause for the depression. During the 1920s and 1930s, the economy largely depended on consumer spending. Since income was distributable among the few individuals, demand for consumer goods declined sharply crumbling the economy. Many people were not able to afford commodities implying that the companies and other businesses could not sell their goods. Due to highly reduced sales, businesses were unable to service their loans and the financial sector collapsed.

What is the symbolic meaning of the term 'depression' as used by the author in The Great Depression: America 1929-1941?

The author uses the term 'depression' to represent desperateness of the American people faced during the hard-financial times. Many people lost their properties due to devaluation and others even died of stress. Many people who were doing well before the depression became poor. Many jobs were lost and bringing food on the table for their families became a difficult task. All these challenges were a result of depression which signifies desperateness.

Why is Jimmy Walker, Mayor of New York City, saying these words, “show pictures which will reinstate courage and hope in the hearts of the people”?

Jimmy walker said these words in the year 1929 to instill hope to the people of America who were already becoming hopeless because of the depression that hit America hard during that time. The stock market was crashing and business was collapsing. Joblessness was the order of the day and people were finding it hard to cope. Walker was encouraging leaders to instill hope in hope as the government was working on specific measures to revive the economy so that life could return to normalcy. He urged politicians and business leaders to be part of policymaking to restore the economy.

Update this section!

You can help us out by revising, improving and updating this section.

After you claim a section you’ll have 24 hours to send in a draft. An editor will review the submission and either publish your submission or provide feedback.

The Great Depression: America 1929-1941 Questions and Answers

The Question and Answer section for The Great Depression: America 1929-1941 is a great resource to ask questions, find answers, and discuss the novel.

How did "The Great Depression" start?

Robert Mcelvaine describes the unequal distribution of consumable income as the primary cause for the depression. During the 1920s and 1930s, the economy largely depended on consumer spending. Since income was distributable among the few...

Why might some critics have seen Migrant Mother as an example of Lange’s “photographic detachment”? Give at least two reasons for the critics’ theory.

I'm sorry, I have no access to the title in question. Is there a direct link available to Endangered Dreams ?

The Great Depression began after the stock market crash of October 1929, which sent Wall Street into a panic and wiped out millions of investors.

Study Guide for The Great Depression: America 1929-1941

The Great Depression: America 1929-1941 study guide contains a biography of Robert S. Mcelvaine, literature essays, quiz questions, major themes, characters, and a full summary and analysis.

• About The Great Depression: America 1929-1941
• The Great Depression: America 1929-1941 Summary
• Character List

Essays for The Great Depression: America 1929-1941

The Great Depression: America 1929-1941 literature essays are academic essays for citation. These papers were written primarily by students and provide critical analysis of The Great Depression: America 1929-1941 by Robert S. Mcelvaine.

• Fitzgerald's Prediction and the Great Depression

Wikipedia Entries for The Great Depression: America 1929-1941

• Introduction