The Great Depression

A depression is a prolonged slowdown in buying and selling:Businesses are unable to sell all they produce.Stocks pile up, despite competitive price-cutting.Firms increasingly lay off workers or go out of business altogether.Because of the businesses laying off workers many people become unemployed and therefore, can not buy anything which leads to declines in sales.This leads to more firms closing and banks going bankrupt because they can not afford to cover their deposits.Everyone is helpless and can not find any way to support themselves let alone their families.
The Great Depression was not thefirst depression our country has seen, but it's clear to see it was the worst.There were other depressions starting in the 1800's occurring all the way up to the Great Depression, such as The Banking Panic of 1819 and 1837.The cause of the Great Depression can be blamed on the Federal Reserve Board.Around the time of the Great Depression, government intervention in the economy had been higher then ever before.A special government agency, know as the Federal Reserve Board, had been set up to help prevent depression and their associated problems.The Federal Reserve Board was known as one of the last resorts to help prevent banks from collapses, but at this time the Federal Reserve did not take the right steps and the economy went into another depression, the Great Depression.
I believe our country is still more successful than any of the other countries.Besides the Great Depression we have gone through many depressions, passed laws and tariffs, and began ourfirst world war.Much of the blame goes on the Federal Reserve Board for the cause of the depression, but I don't think they should get the full blame for the cause of the Great Depression.There are many others reasons and causes that help lead to the Great Depression.The Federal Reserve Board set below market interest rates and low reserv…


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