Sunday, May 6, 2012

Summary
       Before the crash of the stock market, unemployment rates already started to heighten. When more people are out of work, it means tehre is a smaller demand for consumer products. As the demand fell, deflation rose. Banks were panicing and the world monetary system crashed which caused panic in many Americans. The Great Depression was a series of unfortunate events. Workers were not being hired because there was no market for the products. There was no market for the products because the workers would not be hired so they didn't have money to spend on the products.

Analysis
       Basically everything that could of went wrong in a juncture of time did and that is what caused the depression. It was basically a circle that kept going round and round. Workers were out of work and couldn't find jobs because nobody was hiring due to the already overproduction of goods. The workers were the ones buying the goods, but they were out of work and couldn't afford good anymore, thus pushing the economy furthur into the brinks of depression.

Citation
       
Bradford DeLong. (1997, February). Slouching towards utopia?: The economic history of the twentieth century. Retrieved from http://econ161.berkeley.edu/TCEH/Slouch_Crash14.html

Question
Do you think the Great Depression was inevitable?

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