History

The triggering event that led to the Wall Street stock securities industry crack up in October 1929 was the provide of a steady gloaming in production , prices and income over the period of three months . foreboding gave rise to panic thus resulting to the crash . The stock commercialize crash affected various countries and the effects were intense . The low affected greatly the United States be go of the absence of welfare benefits for the fit(p) off workers . Between 1929 and 1933 , funds income knock down by 53 percent and as a consequence , demand fell significantly , which in turn led to lower production and more lay-offs up to 25 percent rate of unemployment in 1933 . And yet despite the severity of the stock market crash , the Federal Reserve did not pursue a monetary expansion policy which would have stimulated the economy finished lower interest rates and increased the stock of money in circulation . As part of the efforts of the United States to neck with the drop-off , the Hawley Smoot Tariff of 1930 was enacted which do US more protectionist than ever thereby sending import duties to record highs . As a result , other countries retaliated as the new tariff act hastened the spill of American trade volume . Since President Hoover has been preservative of the tariff act , he failed to see the results of the moveImmediately thereafter , the printing spread through out the world especially in Europe . Particularly affected was Germany whose economy was unable to cope with the slow disappearance of American capital . It is also value discussing that Germany was still paying reparations for World War I which made its position even more delicate . Germany was then labored to borrow from nifty Britain and France . The country had to pursue deficienary policies in to build the confidence of investors and attract foreign funds . The problem of devaluation tho posed a major problem .

Although the United landed estate was not hit in the aforesaid(prenominal) way as Germany , it however experienced a notable decline in its export which was even greater than the decrease in its imports . Latin America was also greatly affected as it depended to a great extent in selling raw materials in the US . It could not be surmised that the Wall Street crash was the immediate cause of the decline in world trade . The decline in world trade was largely due to the protectionist legislation passed by major trading nationsWhen Hoover was replaced by President Roosevelt in 1932 and brought with him the New Deal which was intended to provide direct musical accompaniment recovery and financial reform to the country suffering from the Great Depression . One of Roosevelt s primary programs was to deal with the country s banking mischance . Since one-fifth of all of the banks in the US were forced to bordering and many people were already starting to lose their life sentence savings , Roosevelt asked Congress to legislate a law which provide protect the saver s investment in times of the same crisis This eventually restored the people s trust in...If you want to get a full essay, order it on our website: Ordercustompaper.com

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