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The Great Depression History?
Hey I just need some help on these questions thanks.
Just some questions I need help on about the Great Depression 1
1)Why were the 1930’s so tough in the U.S after the boom years of the 1920’s? (Farming, the great depression)
2)How was this period described? “........ A time of ...............”
3) a) Why where jobs short after the war
b) How did America turn this around?
c) What was its effect?
4) a) What happened in Australia?
b) What were our returning soldiers offered?
c) What are public works? How were they supposed to help? How did the government achieve their goals?
5)a) How did Canada take advantage of problems in Europe after WW1?
b) How was it financed?
c) What had happened by 1928?
6)Why was Britain in trouble after the war?
- Anonymous9 years agoFavorite Answer
1.British economist John Maynard Keynes argued in General Theory of Employment Interest and Money that lower aggregate expenditures in the economy contributed to a massive decline in income and to employment that was well below the average. In such a situation, the economy reached equilibrium at low levels of economic activity and high unemployment.
Many economists have argued that the sharp decline in international trade after 1930 helped to worsen the depression, especially for countries significantly dependent on foreign trade.
Irving Fisher argued that the predominant factor leading to the Great Depression was over-indebtedness and deflation.
Monetarists, including Milton Friedman and current Federal Reserve System chairman Ben Bernanke, argue that the Great Depression was mainly caused by monetary contraction, the consequence of poor policy-making by the American Federal Reserve System and continued crisis in the banking system.
3.Early changes by the Roosevelt administration included:
Instituting regulations to fight deflationary "cut-throat competition" through the NRA.
Setting minimum prices and wages, labor standards, and competitive conditions in all industries through the NRA.
Encouraging unions that would raise wages, to increase the purchasing power of the working class.
Cutting farm production to raise prices through the Agricultural Adjustment Act and its successors.
Forcing businesses to work with government to set price codes through the NRA.
These reforms, together with several other relief and recovery measures, are called the First New Deal. Economic stimulus was attempted through a new alphabet soup of agencies set up in 1933 and 1934 and previously extant agencies such as the Reconstruction Finance Corporation. By 1935, the "Second New Deal" added Social Security (which did not start making large payouts until much later), a jobs program for the unemployed (the Works Progress Administration, WPA) and, through the National Labor Relations Board, a strong stimulus to the growth of labor unions. In 1929, federal expenditures constituted only 3% of the GDP. The national debt as a proportion of GNP rose under Hoover from 20% to 40%. Roosevelt kept it at 40% until the war began, when it soared to 128%.
4.Harshly affected by both the global economic downturn and the Dust Bowl, Canadian industrial production had fallen to only 58% of the 1929 level by 1932, the second lowest level in the world after the United States, and well behind nations such as Britain, which saw it fall only to 83% of the 1929 level. Total national income fell to 56% of the 1929 level, again worse than any nation apart from the United States. Unemployment reached 27% at the depth of the Depression in 1933. During the 1930s, Canada employed a highly restrictive immigration policy.
5.Australia's extreme dependence on agricultural and industrial exports meant it was one of the hardest-hit countries in the Western world. Falling export demand and commodity prices placed massive downward pressures on wages. Further, unemployment reached a record high of 29% in 1932, with incidents of civil unrest becoming common. After 1932, an increase in wool and meat prices led to a gradual recovery.
6.The effects on the northern industrial areas of Britain were immediate and devastating, as demand for traditional industrial products collapsed. By the end of 1930 unemployment had more than doubled from 1 million to 2.5 million (20% of the insured workforce), and exports had fallen in value by 50%. In 1933, 30% of Glaswegians were unemployed due to the severe decline in heavy industry. In some towns and cities in the north east, unemployment reached as high as 70% as shipbuilding fell 90%. The National Hunger March of September–October 1932 was the largest of a series of hunger marches in Britain in the 1920s and 1930s. About 200,000 unemployed men were sent to the work camps, which continued in operation until 1939.
In the less industrial Midlands and South of England, the effects were short-lived and the later 1930s were a prosperous time. Growth in modern manufacture of electrical goods and a boom in the motor car industry was helped by a growing southern population and an expanding middle class. Agriculture also saw a boom during this period.