Great Depression

Analyze the causes of the Great Depression and describe the methods used to remedy it.
The Great Depression, which plagued the U.S. from 1929 to 1939, was truly a product of World War I.All throughout the war the American economy had been booming and expanding.We had been supplying all the countries involved with the war with anything and everything they needed, be it food, clothing or arms.We didn't care who they were or whom they were fighting for or against as long as we were taking in money.Everyone had been making money and pouring it into farms, factories, and equipment.The demand was at a level it had never come close to before and we were more than willing to meet this demand with supply.Americans quickly got used to being employed, having money, and a high standard of living.When the war ended, society continued on this path.Unfortunately, the demand for our supplies was gone.We didn't know what to do.Between 1929 and 1933 world output of goods fell by an estimated 38% because the demand was gone.
As the demand died down, farms were overproducing, factories were overproducing, and this was leading to prices dropping.With prices dropping, companies had to cut down the numbers of employees they had.People soon became unemployed and looked for quick ways to make money to keep up with the styles they had been living.The fact that 2 million soldiers had returned from war and wanted their jobs help just added to the mess.
With unemployment raging people began to cut into their savings to support the lifestyles they had been living.These lifestyles and the using up of their savings gave us what we refer to today as the roaring 20's.This could only last so long before savings were depleted.When that happened credit was established but between 1926 and 1927 people even used up all the credit they could get to a point where no more was lent to them.


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