Causes of Great Depression, New Deal, Cold War Tensions, Civil Rights Movement

Running Head: US HISTORY
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American History
Student

US HISTORY
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Table of Contents
Introduction................................................................................................................................2
Causes of Great Depression....................................................................................................2
Three ways by which New Deal solved Great Depression....................................................4
The contribution of World War II to the rise of Cold War tensions......................................6
Changes in legislation due to civil rights movement..............................................................7
Conclusion..................................................................................................................................8
References................................................................................................................................10

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Introduction
The Great Depression continued from 1929 to 1939 and considered as the nastiest
financial depression in the United States history. The historians and economists argued on the
stock market boom of October twenty-fourth, 1929, as the initiation of the slump
(Eichengreen, & Temin, 2000). But the fact was that numerous things triggered the Great
Depression (GD), not specifically that single incident. In the United State, the Great
Depression damaged the position of Herbert Hoover and headed to the voting of Franklin D.
Roosevelt in the year 1932 (Robbins, 2011). Promised to provide the country a New Deal,
Roosevelt became the country's longest-serving leader or president (Robbins, 2011). The
communal and cultural impacts of Great depression had no less astounding, particularly in
America, where the GD denoted the strictest adversity confronted by American people after
the Civil War (Eichengreen, & Temin, 2000). In this particular assessment the causes of
Great Depression, three ways that the New Deal solved the problem, how World war 2
helped to the rise of Cold War tensions, and the two different changes due to historical events
will be discussed.
Causes of Great depression
1. A crash of the stock market (economic policies) –
Many trusts mistakenly that the crash of stock market happened on Black Tuesday;
October twenty-ninth, 1929 is one and the similar with the GD. In point, it was considered
one of the main reasons that result in the Great Depression (Kennedy, 2003). Sixty days after
the real boom in October, the shareholders had misplaced higher than $40 billion US dollars.
Even though the American stock market initiated to recover some of its damages, by the
completion of 1930, it just was not sufficient and the US truly moved in what was named the
Great Depression (Kennedy, 2003).

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2. Failures of Banks –
During the 1930s more than 9,000 banks botched. Bank credits were uninsured and
therefore the banks failed individuals simply lost their funds (Calomiris, & Mason, 2003).
Remaining banks were insecure of the financial condition and worried about their personal
existence, stopped being as eager to generate new loans or credits. This worsened the
condition leading to fewer and fewer disbursements (Calomiris, & Mason, 2003).
3. The decrease in Buying Through the Board –
Due to the stock market smash and the doubts of further financial woes, people from
every class stopped buying items. This now led to a lessening in the number of items
manufactured and thus a decline in the staff (Calomiris, & Mason, 2003). As individuals lost
their employment, they were incapable to hold onto paying for objects they had bought with
installment policies and their things were repossessed. The joblessness rate increased above
25 percent which intended; of course, even less expenditure to assist alleviate the financial
situation (Carlson, & Mitchener, 2009).
4. Economic Policy of America with Europe –
As businesses initiated weakening, the government formed the Smoot-Hawley Tariff
in the year of 1930 to defend American corporations. This charged a great tax for
importations thereby results in less trade among America and foreign nations along with
certain economic reprisal (Almunia, Benetrix, Eichengreen, O’Rourke, & Rua, 2010).
5. Drought-related conditions –
Although drought was not a straight initiator of the GD, but affect the economy
indirectly. The drought that happened in the various part of Mississippi Valley in 1930 was of