Understanding the Great Depression: Causes, Severity, and WWII Impact

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Added on  2023/06/11

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This essay examines the Great Depression, focusing on its causes, severity, and influence on World War II. It identifies key factors such as bank failures, reduced purchasing, and drought conditions as initial triggers. The essay highlights the prolonged nature of the depression due to overproduction, underconsumption, banking system breakdown, and policy missteps. Furthermore, it argues that the Great Depression contributed to the rise of dictatorial regimes in Europe, particularly in Germany, where economic distress fueled resentment and paved the way for Adolf Hitler's rise to power, ultimately leading to World War II. The essay concludes by noting that while FDR's policies were helpful, a premature return to a balanced budget hindered full economic recovery.
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What caused Great Depression
A depression in the economic terms might be regarded as a time of prolonged economic
downturn in an economy (Terry and Haas 87). The Great depression begun in 1929 in USA, and
then it stretch to the rest of the globe which triggered a slump when it came to productivity and
soaring unemployment across numerous nations (Terry and Haas 90). The Great Depression in
the 30s was caused by a combination of the domestic as well as the worldwide conditions (Jo
Ann 4). One of the causes was the bank failures. All throughout 1930s over nine
thousand banking institutions had failed. The bank deposits were uninsured and thus as they
failed individuals lost their savings. Another cause which caused Great Depression was reduction
in purchasing across the Board. With the crash of the stock market along with the fear to further
on the economic woes people from the various classes stopped purchasing various products
(Terry and Haas 95). This led to the reduction in the number of the products which are produced
and the reduction in the workforce. The Great Depression also occurred due to the drought
conditions. The drought that happened in the Mississippi Valley in the 1930s was of great
proportions that very few people might purchase their taxes or maybe their additional debts.
What it was severe and lasted long
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The Great Depression was so severe because it brought about the intense decreases in the yields,
extreme unemployment and the intense collapse in every nation of the world. Moreover, its
social impacts were also not amazing Terry and Haas 97). Great Depression
lasted lengthy simply because lots of things at the time went wrong. One included
overproduction as well as underconsumption. There was a breakdown in the banking and credit
system. Additionally there would be a wrong policy by the Federal Reserve along with the
Smoot Hawley Tariff and decline in the export (Ann 34). It undertook quite a long time for
the traders to get back confidence and regardless of problems from a few of the business
community , securities and exchange Act of 1934 benefited from the securities business as
much or even more compared to general public ( Barry 54) . During the time FDR had the right
policy in place, however they made the mistake to make sure to go back to balanced budget once
they saw the economy could recover in 1937.
How it influenced the advancement of World War 11
More often Great Depression has been cited as the root cause to the World War-II since it led to
the economic collapse of the nations. There are some reasons how Great Depression has
advanced the World War-II one was on the eco-political crisis in the Europe which was
disastrous for the Democracy, and this might not come into the term with the rising power of the
Fascist regimes (Barry 65). Additionally, unemployment, poverty result in the cause of
the growth and development of the dictatorial regimes across Europe so they rationalized
the concept of taking anything by force which led to a lot more aggressive foreign policy (Peter
144). It can be noted that the rise of the power Hilter and the Nazi party had something to do
with the economic distress in Germany as well as the rest of the Europe- this was caused by the
Depression (Peter 144). There was also much resentment to most of the Germans’ minds on how
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the world war one ended, with the German troops undefeated in trenches to their harbors. From
the Great Depression it can be noted that it caused Germany fall into the economic downfall,
which resulted to its people to despair and they sought Adolf Hitler as their savior (Peter 148).
Adolf was able to gain power and restore on the economic prosperity through preparing for the
war. At the end he caused the World War two.
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Work Cited
Argersinger, Jo Ann E. Toward a New Deal in Baltimore: people and government in the Great
Depression. UNC Press Books, 2017.
Christensen, Terry, and Peter J. Haas. "The 1930s: Political Movies and the Great
Depression." Projecting Politics. Routledge, 2015. 87-104.
Eichengreen, Barry. Hall of mirrors: The great depression, the great recession, and the uses-and
misuses-of history. Oxford University Press, 2014.
Temin, Peter. "Great Depression." Banking Crises. Palgrave Macmillan, London, 2016. 144-153.
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