Visit Website Lehman, they thought, was not too big to fail. Bush had no explanations. He could only urge fortitude.
The Great Depression The Great Depression was an economic slump in North America, Europe, and other industrialized areas of the world that began in and lasted until about It was the longest and most severe depression ever experienced by the industrialized Western world.
During the next three years stock prices in the United States continued to fall, until by late they had dropped to only about 20 percent of their value in Besides ruining many thousands of individual investors, this precipitous decline in the value of assets greatly strained banks and other financial institutions, particularly those holding stocks in their portfolios.
The failure of so many banks, combined with a general and nationwide loss of confidence in the economy, led to much-reduced levels of spending and demand and hence of production, thus aggravating the downward spiral. The result was drastically falling output and drastically rising unemployment; byU.
The Great Depression began in the United States but quickly turned into a worldwide economic slump because of the relationships that had been forged between the United States and European economies after World War I.
The United States had emerged from the war as the major creditor and financier of postwar Europe, whose national economies had been greatly weakened by the war itself and by war debts.
So once the American economy slumped and the flow of American investment credits to Europe dried up, prosperity tended to collapse there as well. The Depression hit hardest those nations that were most deeply indebted to the United States, such as Germany and Great Britain.
In Germany, unemployment rose sharply beginning in lateand by early it had reached 6 million workers, or 25 percent of the work force.
Britain was less severely affected, but its industrial and export sectors remained seriously depressed until World War II. Many other countries had been affected by the slump by Almost all nations sought to protect their domestic production by imposing tariffs, raising existing ones, and setting quotas on foreign imports.
The effect of these restrictive measures was to greatly reduce the volume of international trade: The Great Depression had important consequences in the political sphere. Roosevelt to the presidency in late American Economic History: The Great Depression Words | 12 Pages.
American economic history were the Great Depression and the Great Recession. While in each period the sources of economic excess differed, manufacturing in and housing in , there are many similarities in their causes and effects.
The Great Depression was the worst economic slump ever in U.S. history, and one that spread to virtually the entire industrialized world. Banks, stores, and factories were closed and left millions of Americans jobless, homeless, and penniless.
The 13 Worst Recessions, Depressions, and Panics In American History One of the features in recessions since the Great Depression, which is not common with those that came before, is. The Great Depression was a severe worldwide economic depression that took place mostly during the s, the 19th century, when it was used by varied Americans and British politicians and economists.
Indeed, the first major American economic crisis, the Panic of . Read this American History Research Paper and over 88, other research documents. Causes of the Great Depression. Causes of The Great Depression The Great Depression was the worst economic slump ever in U.S.
history, and one which /5(1).
A look at what caused the worst economic crisis since the Great Depression. To prevent the Great Depression from ever happening again, the U.S.
government subjected banks to stringent.