How The Great Depression affected the US and The World

        The Great Depression is the period of history that followed Black thorium, the personal line of credit grocery crash of Thursday, October 24, 1929. The outlets in the United States triggered a world-wide depression, which led to deflation and a great profit in unemployment. numerous an(prenominal) economists argue that the Great Depression was both caused and pro retentiveed by government action. The Hoover administration and the Congress increased taxes in a futile attempt to balance the budget. The tax increase only caused a further drop in economical activity, which enlarged the deficit even to a greater extent. Although the initial trigger event may not have been the result of government action, many have argued that incorrect economic policies turned the stock market crash from a momentary crisis into a decade long depression. In particular two policies have been singled out by economists. The first is the tight money policies of the Federal Reserve which curb the money supply. The second was the recourse to protectionism with measures such as the Hawley-Smoot tariff Act, which raised tariffs on imports in recite to protect topical anaesthetic producers who were being hurt by foreign competition. In response, many other countries also raised their tariffs, badly hurting US businesses that exported their goods. This led to a chain reaction of tariff increases which split the world economy.



In the United States, Herbert Hoover was president, and he seek to do something about the situation without much luck. One of the major problems was that with deflation, the currency that you kept in your pocket could buy more goods as the prices went down. The other was that there had been no oversight in the stock market or other investments, and with the collapse, many of the stock and investment schemes were found to be either insolvent, or straightaway frauds. Unfortunately, many banks had...

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