The Great Depression Essay: Essence, Grounds and Outcome


The Great Depression is recognized a vital episode in recent history of America. It initiated with the worldwide financial disaster in 1929, and involved America in particular. The severe stage of the disaster stretched for 3 years - from 1929 to 1932, early 1933.

Throughout the 1930s, until 1939, the financial system did not manage to completely get out of the ruin and achieve progress. Therefore, the entire episode got the name of the Great Depression - due of its extent and severe outcome for the public. In this Great Depression essay you will find its causes, anti-crisis measures and their consequences. When one needs to find dissertation writers online, please, visit our website.

Grounds of Great Depression

The reasons for the Great Depression are the issue of continuing debates concerning the part of governmental plan and the activity of private sector in it. On the whole, in numerous the Great Depression essays it is said that the chief reason for the disaster appeared that capitalism finished to be a self-determining organism. It happened to be a disaster of overproduction of numerous products that went after a phase of material goods and the boom of the US financial system.

The spontaneous growth of the fiscal sphere and the existence of large business that acted externally to the framework of countrywide management, resulted in the extreme manufacture of produce, counting provisions and much more that the market couldn’t take in. The ability of the consumers to buy things could not match the number of products which were manufactured. Therefore, this sphere collapsed. When you ask ‘check my essay for errors’, our experts are ready to support you.

The next ground was fiscal blackmarketeering. It happened to be a phase when the fiscal market was expanding, stock trading was increasing. But the progression as well took place beyond any regulation, in consequence of that lots of fiscal bubbles were blown up, fiscal profit making was made, artificial exploratory firms appeared, and a lot of fraud was carried out. The stocks were produced by everybody who would take the trouble. And this as well resulted in inflation of the economic bubble and a quick fall down in the cost of stocks that was one more tough drive for the financial disaster.

The recession of the American financial system

The decay of the American financial system throughout the Great Depression was extremely deep. Particular spheres were in a disastrous position, primarily the fiscal industry. By early 1933, the complete economic sphere fell into an end in the country, banks started to close. The debt crisis was rather severe, the fall in the stocks value was vast, and retail investors and firms hunted for a way to take out their funds from banks which provided the fall down of the whole bank sector which was frozen and ceased to function. Our research paper writer can create an essay for you on this topic.

The decay in industrial manufacture actually approached 50%, and in definite spheres even more. Agriculture was particularly affected. Farmers, who could not sell their products, were ruined, and throughout this phase above 600 thousand farms collapsed.

The threat of famine in America was absolutely real according to numerous Great Depression essays. This threat, which spread in large industrial centers, hung over a significant part of agricultural areas, because about 10 states, besides the decay in agricultural production, were struck by a powerful drought. Therefore, it became impossible to live in these states, not mentioning to produce agricultural products. The inhabitants moved to more prosperous areas. In case you are searching to pay someone to write an essay, consider this service.

Anti-crisis measures in the banking sector

In 1932, Franklin D. Roosevelt was elected president of America, and in the initial hundred days of his presidency, they adopted a number of anti-crisis laws, restraining the situation that threatened to worsen even further. The reform program that Roosevelt proclaimed lasted until 1938. There are two periods in it.

The first period is 1933-1934. Soon after the inauguration, Roosevelt was forced to announce a bank holiday, that is, the activity of banks was frozen. After that, a law was adopted that generally suspended the activities of banks and allowed their work only after sanation, which was carried out by special state bodies that determined the situation in the bank and decided whether it could function or not. You may ask ‘do my essay for me’ and we will offer you assistance.

If it could function, it was given financial assistance from the federal government, and the bank opened up and continued to work. This actually meant that President Roosevelt had the opportunity to nationalize the banking sector, because the banks still did not work. Many people advised him to do so. But he went on the path of restoring the banking system, helping private financial structures, so that the economy could function, without which it was impossible to restore the financial system.

You can read about our writing services in these posts:

Anti-crisis laws

As for industry, the government here has as well decided to follow the path of management and the adoption of appropriate regulatory legislation which stimulated the adoption of codes of fair competition. To be exact, in order to eliminate chaos, anarchy, and restore the level of prices, manufacture levels, a special law on the restoration of manufacturing was adopted, in accordance with which codes of fair competition appeared. We can help those who type ‘help me write my essay’ on this topic.

These codes meant compulsory business amalgamation. Reading any causes of Great Depression essay you will see that Roosevelt was reproached for that. He was accused that in the interests of big business he is carrying out a program of compulsory cartelization, since the levels in the competition codes have been established on the ground of the interests of larger and more viable groups. And small companies that gave way were ruined.

In addition, this law made it possible to begin a certain regulation of labor relations. There was a special article that regulated the relationship between labor and capital. Originally, the right to make independent trade unions in industry by the workers themselves was proclaimed.

Finally, in the same vein, a law on the regulation of agriculture was adopted, the purpose of which was to guarantee farm debts and increase farm income by raising the prices of agricultural products. It is clear that prices have collapsed after the value of stocks and goods. As a result of this regulation, the federal government guaranteed a return of the farmers' debts and compensated their losses. After all, in order to raise prices for agricultural products, it was necessary to persuade farmers not to sow a new crop and reduce the number of livestock in exchange for appropriate financial compensation. Thus, a large number of products were destroyed: grain, livestock, and milk. It was destroyed, but not delivered to the shops for sale. There happened to be lots of very tragic consequences associated with the management of farming. Being interested in native Americans, you may like this post:

Public works as anti-crisis measures

The second period of reforms is 1935-1938. The disaster continued. If the initial stage of reforms was aimed at stopping panic and helping to restore to some extent farming manufacture and industry, nearly all social problems were resolved at a later date.

Since 1935, an expanded program of public works begins. In the US, by then, the job loss rate had risen to 25% of the number of persons employed in the country that appeared to be over 12 million people. If we take into account that no social legislation, no communal assistance existed in America, then, having lost work, a person found himself without a livelihood. Moreover, the situation was complicated by the fact that in each family, as a rule, there was one worker - the head of the family, the father, who supported a wife and several children. So the number of people who have lost their livelihoods as a result of losing their jobs can be multiplied by 4 or 5, and you will get the number of people who found themselves without any help and did not have maintenance. So in the mid-1930s the government of the United States was forced to solve numerous social problems. They solved them in different ways. One of the directions is the expansion of public works programs.

Public works covered millions of Americans. It was not even so much about doing something real or constructing, although these were quite real projects. It was about giving people something to do first. Looking for a job abroad, look at this link:

Therefore, the public works program mainly involved infrastructural and socially significant projects. They included the construction of hospitals, stadiums, schools, post offices, bridges, highways, roads, airports, dams and hydroelectric power stations. The improvement of national parks, reserves was carried out, special measures were taken to protect the environment.

These projects engaged not only workers, not only young people, who participated in the summer camps for the protection of the environment and the improvement of national parks. Architects, artists, sculptors, and engineers also participated in this program, and other people of various professions, who were able to have some income from public works programs in the United States.

There was even a special program for theaters. Actors on the program of public works gave free performances. Under the same program, musicians gave free concerts, music schools worked free of charge.

This program helped not only to save millions of Americans from starvation, but also to preserve the national heritage of culture, which, of course, is very important.

An important direction of social reforms was the adoption of Wagner's law on the regulation of labor relations in 1935, which for the first time legally allowed the creation of trade unions. This law also recognized the right of organized workers to strike, that is, strikes became legal.

In addition, the epochal law on social insurance was adopted, which provided the introduction of unemployment benefits, which was extremely important in this situation, and old-age pensions, which also solved significant social dilemmas. A little later, a law on fair terms of employment was adopted. This initiated a minimum wage and limited the number of working hours.

Effects of anti-crisis measures

With regard to the meaning and consequences of the line of changes, there come around debates about how successful they were in respect of the financial system. Quite honestly, the efficiency was not especially significant, since lots of dilemmas, above all job loss, the fall in manufacturing, persisted till 1939, and the Second World War that had just started in Europe, has dragged the economy out of the depression in 1939.

But the main significance of Roosevelt's New Deal course was that this was at this time the function of the executive branch of America that altered drastically, the foundation of wellbeing governmental strategy was laid when the method of managing financial system, manufacturing, farming and, most importantly, finance was introduced. A commission was created to regulate security papers and marketplace trading that imposed limitations on all kinds of profit making and misuse, the creation of soap bubbles, fake fiscal firms and the like.

Social laws, initially implemented in the US in the 1930s, have since been the pillar, the ground for the running of the whole American society.

That is, these sophisticated varieties of management of financial and public existence were originally constructed that in America were not present before.

Hence, the importance of the New Deal is that throughout this phase the now-existing American state was created and a policy was formed that continues to the present day.

Other popular topics:

You Also Like: