Recessions and Depressions Essay - 1653 Words

America has experienced several recessions and depressions in the past. Most recently, the housing crisis sparked a recession which has led to rising unemployment. The largest recession so far has been the Great Depression of the 1930s. A stock market crash in 1929 caused loss of savings which led to unemployment, lower wages, and a distrust of the banking system. The affects of it lasted into the 1940s. Franklin Roosevelt was elected president during this period; legislation he passed tried to alleviate the suffering of the public. As a result of the Great Depression, Franklin Roosevelt created the Civilian Conservation Corps to employ jobless young men and improve government land. The decade directly preceding the Great†¦show more content†¦The average stock price tripled from 1925 to 1929. However, the stock market took a definite change of direction on October 24, 1929 when a record 16,410,030 shares were sold. This abrupt stock market crash led to the next decade, known as the Great Depression (â€Å"Roaring Twenties†). The stock market crash of 1929 directly caused the Great Depression; however, many factors contributed to the fall. No one factor of combination of factors can be said to be the predominant cause of the stock market crash. Economics is not an exact science. It contains plenty of room for fluctuation (Nardo 36). The public was quick to blame the government. Herbert Hoover, President during the stock market crash, offered three main explanations for the crash: a slump in stock speculations, economics outside the United States of America, and World War I. The World War I theory was widely criticized and Senator Carter Glass thought it was no more the cause of the crash than the â€Å"war of the Phoenicians or the conquest of Gaul by Caesar.† (Nardo 36). The excuse that it was out of the United States’ control might have been accurate though. While the Great Depression was a global event, not all countries entered it at the same time. Eight countries - Canada, Ar gentine, Brazil, Germany, Finland, Poland, Australia, and the Netherlands Indies – entered the depression before the USA. However, nearly twice that numberShow MoreRelatedThe Great Depression And Recession952 Words   |  4 Pages Thank you for providing students the opportunity to explore their perspectives. In this reflection paper, I will summarize my comprehension of the Great Depression and Recession, react to readings and lectures and share my views of a remarkable article that I recently read. In today’s fast-paced world, students, similar to many Americans, do not have enough time in a day to notice the intensity of the economy in their ultimate satisfaction, happiness, and overall well-being. 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