Economic History Problem

Economic History

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Economic History
The great depression was experienced between 1929 and 1939. It was an economic downturn that lasted for a long time, and it was very deep in the history of the western world, which was industrialized. The depression started just after the stock market crashed in the United States. Therefore, Wall Street was in a great problem since all the investors were wiped away by the depression. The investment and spending of consumers also dropped. The goods that had not been sold started piling up thus the production process was slow (Watkins 1993, 42). Therefore, the industrial output declined at a very high rate. Unemployment also increased at a high rate since the companies that were failing had to lay off some workers to ensure that they were able to survive. By 1933, the depression was at its peak thus between thirteen to fifteen million people were not employed, and almost all the banks in the United States had failed. The capitalism of America also stopped working. For a very long time the free market failed, and that prevented any person from succeeding economically. It could have been very hard for the economy to recover since the depression had caused great damage to the economy and to people as well. The effects of the depression were severe, and they were experienced by very many people. Despite being assured by leaders that the problem could be solved, the situation was only getting worse t…