depression causes effects
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Q: Does anyone know a WEBSITE that lists the causes AND effects of depression AND isolationism among teenagers?
It can be two different websites .. like one website have the causes/effects of depression with teenagers, and one can have the causes/effects of isolationism with teenagers. Thanks a ton!
A: Try WebMD.com
Q: Summarize the causes of great depression,immediate effects in europe and the U.S,and reaction to it of the gov?
What were the effects of the depression on colinial nations .Effects on Japan and China? IN what states were the most effective measures taken?
Points for best answer. Thanks!
A: Causes were the stock market crash in US, + dust bowl. Colonial nations suffered most, as these were heavily dependent on natural resources for income, and the prices of these crashed during the Depression. (More so than for industrial products.) Plus, colonies were very dependent on trade, and many countries in the depression set up greater trade barriers.
Q: what are the main causes and effects of the great depression?
Um well…….I’m doing a social studies project and i have decided to do a cause and effect chart for the great depression if u could just tell me in a simple way what the causes and effects were that would be GREAT!!!!! oh and im in 6th grade so keep that in mind thanks and answer ASAP (as soon as possible)
A: Hi! You are in the wrong category. This is mental health. It picked up on the word depression. Try posting again but in homework help.
Q: What were the effects of these ( listed below) five causes of the great depression?
What were the effects of these five cause on the Great Depression:
1. Monetary policy-
2. High Tariffs and war debts-
3. Stock Market crash-
4. Over production in Industry and Agriculture-
5. Unequal Distribution of income-
I would like to know the effects these causes had on the Great Depression, thank you
no it’s not a hw assignment
A: how about your take it upon yourself to become more intelligent and learn the answers to these things and why. theres a reason you go to school. its so that you dont end up an ignorant fuck.
Q: The Great Depression causes and effects?
ok well basicly i ahve to do a social sutdies exit project and im doing mine on the causes and effects of the great depresion. the report has to have 3 parts. one part is the introduction. in the intoduction i have to have what led up to the great depression. the 2nd part is the causes and the 3rd part is the effects. well basicly my problem is the introduction and the causes are the same information. what led up to the great depression and the causes are basicly the same thing. in the intro right now im talking about the 1920s wich is the cause. plz help i don not know what to put in the causes if the introduction is going to be talking about the 1920s and the stock market crash and debt. plz i onl have 2 days elft to do this!!!
i know alot happend you didnt answer my queestion
A: Introduction: (c) Renee S.
The Great Depression affected millions of Americans and other people worldwide. The declining demand was receding long before 1929. The coal, railroad, and textile industries were all losing money. Major industries, such as automobiles, construction, and mechanized agriculture, consumption levels stayed the same. However, when the demand began to steady or balance, the supply surpassed demand. Many unsold products were stored and many workers were laid off. Wages soon decreased and along with the purchasing power of the employed. About one third of the United States’ population before 1929 invested their money on the stock market. People borrowed money from many sources. When the stock market crashed, the loans were expected to be paid back. Many Americans withdrew their savings to payback the loans. This caused several banks to collapse. Upper classes grew richer and the lower classes’ income did not increase. The Great Depression definitely changed everyone in the United States and nobody knew what who to blame.
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Okay, well my first part I included the causes. I just wrote it without reading your question. The introduction should be a synopsis of your report. I don’t think it will be good to jump into about the stock market crash and stuff. Briefly describe each part in 2 brief sentences. For example: “The Great Depression was one of the worst recessions that occured in the United States. With labor force decreasing, many Americans were homeless, hungry, and not optimistic. ” Your introduction should have FACTS about the Great Depression. Try to stay away from making it 1st person!
Alright, now lets talk about the causes. Start out by saying something like; “Life in the 1920s……………..” Include how people invested most of their money in stock markets. Include dates! Read my introduction if you need help.
The 3rd part is the effects. I think this should be fairly easy. Some effects are that people had to sell apples at 5 cents each I think? I am not sure about the pricing. Research more on that. Notice how in the introduction, I said [with labor force decreasing, many Americans were homeless, hungry and not optimistic. These are 3 effects! Of course, there are more but those are the ones that I know.
Hope I helped!
Q: Does Manic Depression cause effects such as dilated pupils?
on occasions my man has dilated pupils. he is a bit weird regarding his lifestyle. he has highs and lows, ups and downs, dosnt sleep normal, hypo then exhausted etc. sometimes hes real needy and other times totally stanoffish. just wondered if it could be drugs (which he completely denies) or a disorder such as depression? keen to hear from anyone who may suffer from this
A: I'm not going to pretend I know what is going on with your boyfriend because I have not met him (or you for that matter).
It could be drugs or it could be a psychiatric condition. The thing with something like bipolar is that the periods of mania and depression last weeks or even months at a time. How often does his mood fluctuate?
If he has variations in mood that are rapid i.e. that change day by day, he may have a cyclothymic personality disorder. If mood varies week by week or there abouts, he could have rapid cycling bipolar.
Drugs and mental illness often go hand in hand - he may have both issues.
The best advice I can give to you is to confront him about his behaviour. Don't judge him or accuse him of drug abuse, simply tell him that you are worried about him and that his mood variations are not normal.
Hope this helps.
Q: How did the effects of World War I contribute to causes of the Great Depression?
What were some of the effects of WWI?
What were the causes of Great Depression?
A: Great Depression
The Great Depression was a worldwide economic downturn, starting in 1929 (although its effects were not fully felt until late in 1930) and lasting through most of the 1930s. It centered in North America and Europe, but had damaging effects around the world. The most industrialized countries were affected the worst, including the United States, Germany, Britain, France, Canada, and Australia. Cities around the world were hit hard, especially those based on heavy industry. Construction virtually halted in many countries. Farmers and rural areas suffered as prices for crops fell by 40-60% Willard W. Cochrane. Farm Prices, Myth and Reality 1958. p. 15; League of Nations, World Economic Survey 1932-33 p. 43. . Mining and logging areas were perhaps the hardest hit because demand fell sharply and there was little alternative economic activity. The Great Depression ended at different times in different countries; for subsequent history see Home front during World War II.
Dorothea Lange's Migrant Mother depicts destitute pea pickers in California, centering on Florence Owens Thompson, a mother of seven children, age 32, in Nipomo, California, March 1936.
Causes of Depression
Scholars have not agreed on the exact causes and their relative importance. There are multiple issuesâ€"what set off the first downturn in 1929, what were the structural weaknesses and specific events that turned it into a major depression, and how did the downturn spread from country to country.
In terms of the 1929 small downturn, historians emphasize structural factors and the stock market crash, while economists point to Britain's decision to return to the Gold Standard at pre-WWI parities ($4.86 Pound) (Peter Temin, Barry Eichengreen).
Although some believe the Wall Street Crash of 1929 was the immediate cause triggering the Great Depression, there are other, deeper causes that explain the crisis. The vast economic cost of World War I weakened the ability of the world to respond to a major crisis. In Europe, the question of the war reparations was fundamental to the economic and political history of France, Germany, Britain and the United States, but the greatest effect was on Germany, since that country had to pay the largest portion of reparations[1].
The search for causes is closely connected to the question of how to avoid a future depression, so the political and policy viewpoints of scholars are mixed into the analysis of historic events eight decades ago. Current theories may be broadly classified into two main points of view. First, there is orthodox classical liberal, monetarist, Keynesian, Austrian Economics and neoclassical economic theory, which focuses on the macroeconomic effects of money supply, including production and consumption. Second, there are structural theories, including those of institutional economics, that point to underconsumption and overinvestment (economic bubble), or to malfeasance by bankers and industrialists.
The Stock Market crash
The stock market crash of October 1929 is partially responsible for causing the Depression. According to Milton Friedman, “the stock market (crash) in 1929 played a role in the initial recession.” It clearly changed expectations of the future, shifting the outlook from very positive to negative, with a dampening effect on investment and entrepreneurship. There was a brief recovery in the market in early 1930, but late in the year it began almost continuously to bounce downwards for the next two years, producing the greatest long-term market declines by any measure.
Debt
Macroeconomists, including Ben Bernanke, have revived the debt-deflation view of the Great Depression originated by Arthur Cecil Pigou and Irving Fisher. In the 1920s, the widespread use of the home mortgage and credit purchases of automobiles and furniture boosted spending but created consumer debt. People who were deeply in debt when a price deflation occurred were in serious trouble—even if they kept their jobs—and risked default. Indeed, prices and incomes fell 20-50%, but the debts remained at the same dollar amount. As the debtors tightened their belts, consumer spending fell, and the whole economy weakened. With future profits looking poor, capital investment slowed or stopped. In the face of bad loans and worsening future prospects, banks became more conservative. They built up their reserves, which intensified the deflationary pressures. The downward spiral sped up. This kind of self-aggravating process may have turned a 1930 recession into a 1933 depression.
Trade Decline and the Smoot-Hawley Tariff Act
Many economists at the time argued that the sharp decline in international trade after 1930 helped to worsen the depression. Some also argued that the growing body of economic intervention after 1932 contributed to the market’s inability to react to abrupt changes and kept unemployment high. The British Empire promoted trade inside the Empire; Germany promoted economic autarky in which countries received benefits (or threats) for trading with Germany.
Most historians and economists assign the American Smoot-Hawley Tariff Act of 1930 part of the blame for worsening the depression by reducing international trade and causing retaliation. Foreign trade was a small part of overall economic activity in the United States; it was a much larger factor in most other countries. [2] The average ad valorem rate of duties on dutiable imports for 1921-1925 was 25.9% but under the new tariff it jumped to 50% in 1931-1935.
In dollar terms, American exports declined from about US$5.2 billion in 1929 to US$1.7 billion in 1933; but prices also fell, so the physical volume of exports only fell in half. Hardest hit were farm commodities such as wheat, cotton, tobacco, and lumber. According to this theory, the collapse of farm exports caused many American farmers to default on their loans leading to the bank runs on small rural banks that characterized the early years of the Great Depression.
Federal Reserve and money supply
Monetarists, including Milton Friedman and Ben Bernanke, stress the negative role of the Federal Reserve System. It tried to help the economy by actions that effectively cut the money supply by one-third from 1930 to 1931. With significantly less money to go around, businessmen could not get new loans and could not even get their old loans renewed, forcing many to stop investing. This interpretation blames the Federal Reserve, especially the New York branch, which was owned and controlled by Wall Street bankers. The Fed was not controlled by President Hoover or the U.S. Treasury; it was primarily controlled by member banks and businessmen and it was to these groups that the Fed listened most attentively regarding policies to follow.
Friedman argues that: “The serious fault of the Federal Reserve dates from the end of 1930, when a series of bank failures… changed the monetary character of the contraction. Prior to that date, there was no sign of a liquidity crisis—the ratio of currency to deposits was relatively stable or falling. From then on, the economy was plagued by recurrent liquidity crises. A wave of bank failures would taper down for a while, and then start up again as a few dramatic failures or other events produced a new loss of confidence in the banking system and a new series of runs on banks…. From the end of October 1930 through July 1931, nearly 1,400 banks holding $1 billion in deposits or about 2% of all deposits in commercial banks failed, the money stock declined by 6% in addition to the 3% decline up to October, and deposits in commercial banks fell by 8%…. [In August 1931] the System raised discount rates sharply….The measure was also accompanied by a spectacular increase in bank failures and runs on banks. All told, in the six months from August 1931 through January 1932, 1,860 banks with deposits of $1,449 million suspended operations, and total deposits in commercial banks fell by 15%” [A Program for Monetary Stability (1960) pp 18-19].In his book, “America’s Great Depression” Austrian Economist Murray Rothbard argues that the initial collapse of the Great Depression was simply the necessary monetary contraction that had to follow the inflationary policies of the Federal Reserve that initiated the boom of the 1920s. Rothbard further argues that the Great Depression need not have been anything more than a garden variety economic contraction but was caused to be so long because of the continual interference of the Hoover and Roosevelt Administration that continued to prop up economic dead wood (i.e. ailing/unsound institutions) through government bailouts as opposed to letting them quickly die and be replaced by healthier ones.
Economic historian Ben Bernanke pointed his finger directly to the actions by the Federal Reserve. On Milton Friedman’s ninetieth Birthday, November 8, 2002, he stated: “Let me end my talk by abusing slightly my status as an official representative of the Federal Reserve. I would like to say to Milton and Anna: Regarding the Great Depression. You’re right, we did it. We’re very sorry.” [3] [4] [5]
Capitalism
The revolutionary left saw the Great Depression as the beginning of capitalism’s final collapse. There was a belief that the free market was inherently unstable. However, under Hoover the market was far less free than it had been previously. Government intervention in the economy expanded greatly including high levels of spending, price controls and intervention in labour disputes. If the free market were to blame, it caused the collapse when it was weakest.
Business
Roosevelt and most of the New Dealers primarily blamed the excesses of big business for causing an unstable bubble-like economy. The problem was that business had too much power, and the New Deal was intended to remedy that by empowering labor unions and farmers (which it did) and by raising taxes on corporate profits (they tried and failed). Regulation of the economy was a favorite remedy. Some of those regulations, such as establishing the Securities and Exchange Commission which regulates Wall Street, won widespread support and continue to this day. Most of the other regulations were abolished or scaled back in 1975-1985 in a bipartisan wave of deregulation.
Public behavior
The British economist John Maynard Keynes coined the term “paradox of thrift” to describe the deepening of the Great Depression after 1929. The paradox of thrift indicates that when people decide to save more they spend less. After the stock market crash of 1929, this increased saving and reduced spending left markets saturated, contributing to price deflation, perpetuating the Great Depression. Businesses responded to less consumer spending by cutting back on production and laying off workers. With less spending on investment they were also doing their share of causing a reduction in aggregate expenditures, reducing their investments, setting in motion a dangerous cycle: less investment, fewer jobs, less consumption and even less reason for business to invest. The lower aggregate expenditures in the economy contributed to a multiple decline in income, well below full employment. In this situation, the economy may reach perfect balance, but at a cost of high unemployment and social misery. At the lower income levels experienced during the Great Depression, savings were much lower than before — hence, the paradox of thrift. As a result, Keynesian economists were increasingly calling for government to take up the slack by increasing government spending.
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Q: What were the most important causes and effects of the Great Depression?
A: Causes of the Great Depression and effects
1. Stock Market Crash of 1929
Many believe erroneously that the stock market crash that occurred on Black Tuesday, October 29, 1929 is one and the same with the Great Depression. In fact, it was one of the major causes that led to the Great Depression. Two months after the original crash in October, stockholders had lost more than $40 billion dollars. Even though the stock market began to regain some of its losses, by the end of 1930, it just was not enough and America truly entered what is called the Great Depression.
2. Bank Failures
Throughout the 1930s over 9,000 banks failed. Bank deposits were uninsured and thus as banks failed people simply lost their savings. Surviving banks, unsure of the economic situation and concerned for their own survival, stopped being as willing to create new loans. This exacerbated the situation leading to less and less expenditures.
3. Reduction in Purchasing Across the Board
With the stock market crash and the fears of further economic woes, individuals from all classes stopped purchasing items. This then led to a reduction in the number of items produced and thus a reduction in the workforce. As people lost their jobs, they were unable to keep up with paying for items they had bought through installment plans and their items were repossessed. More and more inventory began to accumulate. The unemployment rate rose above 25% which meant, of course, even less spending to help alleviate the economic situation.
4. American Economic Policy with Europe
As businesses began failing, the government created the Smoot-Hawley Tariff in 1930 to help protect American companies. This charged a high tax for imports thereby leading to less trade between America and foreign countries along with some economic retaliation.
5. Drought Conditions
While not a direct cause of the Great Depression, the drought that occurred in the Mississippi Valley in 1930 was of such proportions that many could not even pay their taxes or other debts and had to sell their farms for no profit to themselves.
Q: What were the causes/effects of the great depression?
A: The main cause was buying on margin, which is when you buy stocks with your anticipated profit on another stock. It’s very risky and it inflates your “value”–you don’t actually have as much as you think you do. The problem was that banks did this, too–everyone was based on credit, and eventually it came out that no one had any money.
The effects? World-wide, fascism (in many ways due to economic problems). Nation-wide, the New Deal…and the FDIC.
Q: what were the causes and effect of the depression of the 1890s?
what caused the depression of 1890?
and were the effects of it?
A: http://projects.vassar.edu/1896/depression.html
hope this helps
Q: What are the effects of depression and what causes it?
A: gee where do i start, being sad, crying, very emotional, not eating eating too much sleeping too much no energy, mood swings mine comes from my family and life good luck, and go see a doctor
Q: What are some major causes and effects of the Great Depression?
need to know
A: I think you posted this in the wrong section.
Yahoo! Answers thought you meant depression as in the mood disorder, not the historical event.
Q: What were the main causes and effects of the Great Depression?
A: Again this should be posted in the History section of Yahoo Answers.
The Great Depression occurred as a result of the stock market crash on October 29, 1929. Though it started began in the United States, the tragedy spread throughtout the world. International trade results dramatically decreased. New construction was virtually halted in many countries. Farming and rural areas were hardest hit as crop prices fell as much as 60 percent. Mining and logging industries experienced no demand for goods.
This information was taken from Wikipedia. They list various casues for the Depression such as debt and declining trade.
Q: causes of the Great Depression and its effects on western nations?
auses of the Great Depression and its effects on western nations?
A: It made people move from their homes and sell their farms
Q: What are the causes and effects of The Great depression?
May I also have a long answer not a short answer
A: cause – no money
effect – less money because of loss of job
What Caused the Great Depression?
There are several explanations for what happened but the most obvious conclusion is that it was the confluence of several shortsighted and commiserating factors. Three main themes emerge: historical factors, central bank policies, and political decision making. For the purposes of this discussion the focus will be on the United States.
The US in the 1920’s: Buying into the Boom
The 1929 stock market crash marked the beginning of the Depression. Prior to the crash the stock market had been an important source of funding for industry; thus the crash itself was a contributing factor to the downturn as well as a harbinger of things to come. Since stock prices are based on estimates of future earnings potential, the stock market performance of the 1920’s tells a story of runaway optimism for the future. When it peaked a few weeks before the crash, The Dow Jones had risen 597% over the previous 8 years. It was soon to become a symbol of runaway pessimism.
The freeing of capital from government use to commercial use following World War I caused commodity prices to inflate. In 1920, Ben Strong of the US Federal Reserve Bank of New York raised interest rates sharply to prevent inflation. This caused a recession and the stock market to fall. Once hard assets like commodities and real estate were no longer rising in price, money began to pour into stocks and bonds. The Dow started climbing from its low at 63.90 in 1921 and rose 150% over the four years to 1925.
According to Ron Chernow, in “The House of Morgan”, It was in 1925 that Ben Strong made a secret commitment to Montague Norman, Governor of the Bank of England, to help England reinstate the Gold Standard. This action would later be shown to have undermined the British economy but the Pound had been the main medium of international exchange at that time and it was felt to be in everyone’s interest to have it be exchangeable for gold. With moral support from the US Treasury, Strong chose to help strengthen the value of the Pound by depressing US interest rates. This depressed the value of the US Dollar and caused the already robust economy to boom.
It was suddenly cheaper to borrow money to invest in the stock market (called margin investing). Since the Dow had risen steadily since 1921, “small investors leapt giddily into the stock market in large numbers”. The margin requirement at that time was only 10%, meaning you could buy $10,000 worth of stock with only $1,000 down, borrowing the rest. With artificially low interest rates and a booming economy people and companies were more apt than ever to invest in grandiose business expansions and over-priced stocks. Mergers and acquisitions soared.
In 1927, Britain ran into trouble with its gold standard again and Ben Strong lowered US interest rates in sympathy for a second time. This ignited the boom into the speculative frenzy that brought the market to its peak on September 3, 1929. It was like pouring gasoline onto a fire – the flames rose up, no lasting fuel was added, but the economy sure looked great.
Ben Strong died in October 1928. George Harrison, his successor immediately lobbied for higher interest rates to cool the speculative fervor. Rates were finally raised 1% in August of 1929, but by then it was way too late. The Dow peaked at 381.17.
The market and the economy had buoyed itself from one source of hope to the next for a whole decade. First it was the end of war-related inflation and booming exports for war reparations, next artificially low interest rates in 1925 and 1927 and booming exports due to a reduced value of the Dollar vs. the Pound. There were major tax reductions instituted by the Republicans under Hoover and finally in June of 1929 an international accord was struck with the Germans (albeit short-lived) over the financing of war reparations, a major issue of the decade.
By Monday, October 28, 1929 the Dow had fallen 20% to 300. It fell 40 more points that day and another 30 on Tuesday (Tragic Tuesday) to reach a temporary bottom at 230.07. It was down 40% from the peak 56 days earlier.
George Harrison bravely stepped in to provide tremendous amounts of credit to the banking system. This action prevented immediate bank failures and bankruptcies and a total collapse. The market recovered a good bit of ground but began to fall again before year-end. By mid-1930 this liberal credit policy was to be reversed affecting the money supply crisis discussed below.
In early 1930, there were 60 bank failures per month in the US but when the Fed tightened its purse strings, things got much worse. 254 banks failed in November and 344 in December of 1930. Among these was the Bank of the United States, with 450,000 depositors it was the fourth largest bank in New York. Although it was a private bank, “The biggest bank failure in American history, the Bank of the United States bankruptcy fed a psychology of fear that gripped depositors across the country.”
In spite of further tax cuts, public works programs and optimistic speeches, spending and thus economic activity just kept going down. The stock market would make temporary recoveries, sucking buyers in, only to free fall again. The Dow finally hit bottom at the level of 41.22 on July 8, 1932, 10.5% of its peak three years prior.
Interestingly, various bankers, government officials, and academics chose this three-year period to expound righteous advocacy of personal, corporate, and governmental frugality and restraint. “Leadership” that was so lacking when it could have helped in the frenetic 1920s. John Maynard Keynes, the famous British economist whose economic stabilization theories would greatly influence the recovery in years to come, however, warned such austerity would only deepen the depression. As we will see, truly it did.
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