The great depression Essay Example | Topics and Well Written Essays - 1500 words

The great slack - Essay ExampleAt the same time, inequality grew by 0.1 pct pushing the poor to worse levels while the rich gained more wealth (Mcquaid 636). Evidently, with the rising personal debts and a consistent production of more goods, a balance was unattainable hence triggering a great notion on the lack Tuesday of October 1929. The stock market crashed leading to the worse economic collapse felt completely over the world including various industrialised nations such as Europe.Apart from worsening wages, the great belief led to the closure of 11,000 banks out of 25,000 by 1933 in the United States. Notably, the failure attracted a nationwide divergence of confidence in the economy. As a result, many people were not willing to invest or meet the high production at the time. Certainly, this aggravated the spiral downfall hence putting into interrogative sentence the relationship build by the States from World War I. historically, America emerged from world war I as a majo r financier of various countries including Europe. Countries like Germany had been weakened by the war and had to devote for war reparations (Freedman 62). It, therefore, asked for a lot of financial assistance from America, which appeared to be enjoying financial stability. Therefore, many countries that suffered from the great depression mainly had debt or credit related issues with the United States. Germany, for instance, had cases of rising unemployment represented by 6 meg people, which is 25% of the entire German workforce.The great depression was felt in different countries around the globe. Its huge effects not only forced a new deal in America but directly led to extremism in Germany and most importantly World War II. As a result various key issues contributed to the fall of world economy.Before the industrialization period, expressage Americans had a limited access to the banking sector. However, as industrialization gained momentum more banks came into light. Americans