The Course of the Great Depression - 3590 Words

The October 1987 collapse in stock prices conjured visions of 1929 and the Great Depression. Focus on this period is natural because the 32 percent decline in stock values between the market closes of October 13 and 19, 1987, was of the magnitude of--indeed, it actually exceeded--the October 1929 debacle. Focus on this period is also appropriate because, despite all that has been learned since to help assure economic stability, we cannot be completely confident that history will not repeat itself. Consequently, this first section reviews events of the Depression era. The stock market Crash of October 1929 is frequently credited with triggering the Depression. The decline was severe and extended; from their peak in September 1929, stock†¦show more content†¦And in the absence of significannot efforts to offset these failures, the money supply (of which 92 percent consisted of bank deposits) fell by 31 percent between 1929 and 1933. Unlike monetary policy and related financial disturbances, fiscal policy did not play a particularly significannot role during the Depression. Federal government spending, including transfer payments, was small before and during the 1929-1933 period. Moreover, changes in tax and spending policies, and resulting fluctuations in the budget deficit, were generally minor. Perhaps fiscal policy could have done more to combat the Depression; in the event, it was not a major factor. Causes of the Depression Keynesian Explanation There is not, at this point, anything approaching a consensus on the causes of the depth and duration of the Depression. With the passage of time, the Keynesian view that an inexplicable contraction in spending--business investment and personal consumption--led to the collapse in economic activity has fallen into disfavor. A contraction in spending did of course occur, but showing that the decline was a cause rather than a reaction to a deeper economic malady is difficult. Some claim the stock market collapse of October 1929 was the cause of the spending contraction, but the evidence is suspect. Quantitatively, the decline in share values, large and persistent as it was during the Depression, does not seem sufficient to generate aShow MoreRelated The Course of The Great Depression Essay3525 Words   |  15 PagesThe Course of The Great Depression The October 1987 collapse in stock prices conjured visions of 1929 and the Great Depression. Focus on this period is natural because the 32 percent decline in stock values between the market closes of October 13 and 19, 1987, was of the magnitude of--indeed, it actually exceeded--the October 1929 debacle. Focus on this period is also appropriate because, despite all that has been learned since to help assure economic stability, we cannot be completely confidentRead MoreEssay about The Grapes of Wrath - The True American Spirit1137 Words   |  5 Pagesexcellent portrayal of the common and true Americans. While it is of course a book of deep thought and incredible symbolism, most of all The Grapes of Wrath gives these common American workers a voice and a distinct identity, and doesnt just turn them into a stereotype or cliche.       Steinbecks book could be regarded as one of the best books from America and perhaps the best on the subject of the Great Depression. It doesnt focus on the stock market crashing or from the upper classRead MoreThe Publics Interaction With Anxiety, Depression, And Its Treatment1587 Words   |  7 Pages The Publics Interaction with Anxiety, Depression, and its Treatment Elijah-Smith-Antonides Community College of Road Island General Psychology Traci A. 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