Essay on world war 2 causes and effects

These essay on world war 2 causes and effects safe, secure, and efficient ways to make payment online. The new dealof President Roosevelt has been accredited for saving the U. S out of theeconomicturmoil it found itself into. The causativefactors of the Great Depression are still a debatable issue for historians and economists.

For many people however,the period is attributed to the stock market crash of 1929. However, there lacka consensus about the causes of the economiccrisis which worsened into a depression. May be some of the most important questions to ask while analyzing the causes of the great depression includes questioning on the reason why the citizens were overconfident in the stock market prior to the great depression, how the consumption psychology structured the causes and impacts of the crash, the patterns of investment in the stock market in 1920s, the main investors and Hoover’s reference of an economic crisis as a depression. This paper shall analyses the probable causes of the Great Depression and its impact. In 1928, Herbert Hoover was elected into office as the president of the USandthe citizens remained optimistic and confident in the American economy. This fueled the optimist of the American citizens as theeconomycontinued to prosper. One way to fight poverty was to invest in the stock market.

Prior to 1929, the stock market had increasing prices and a bull market existed. Investing in the market was as a result of rising dividends, personal savings, banksloans, firms’overproduction, non-regulated stock market and the consumption psychology. The crash wasinitiated as a fluctuating market, which wasdismissed by analysts hoping that the market would stabilize by itself. During the nineteen twenties, production was high and a record profit was reached by businesses. This caused inequality in wealth distribution as the rich continued to amass wealth.

Spending was cut off and businesses continued their production. Purchasing declined even in foreign nations as Europeans were in a depression. Therewas a disparity in the distribution of wealth. More cash was with the wealthy personsandindustrialists and this meant that the poor would also have a share since they would be employed in the firmsinitiated by the rich. Several factors resulted to the great depression both domestically and internationally. One of the cited factors involves the nineteen twenty nine crash in the stock market. Following the crash stockholders incurred great losses where over forty thousand billion dollars was lost.

The stock market started to recover the losses but this proved futile and the U. S entered a historical period referred to as the great depression. Besides, the stock market was filled withunregulated over-speculations, which facilitated many citizens to have a share in thestocks market. Although they lackedthe cash so,they purchased the stockson credit, an aspect referred to as margin buying.

This resulted into more loans meant to purchasehighly prized stocks and their investment was lost when a crash occurred. The lenders could also not be paid and ended up losing their money. In 1928, the stock market was doing well and in September of the following year, it grasped a record rise of 381. This time, Irving Fisher an economist at Yale University pointed out that America was in the path of a stable elevated plateau of success.

Unfortunately, a downward trend started and on 24, October panic selling started as 12. 8 million shares were traded. By July the following year, close to 41. 22 million dollars had perished. The people who has purchased on margin or credit did not have the finances to clear the debts and the depression was at hand.

Facebook Comments