The Great Depression (Essay Sample)

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The Great Depression
The great depression occurred in a period in history that the economies of the world were not stable politically and the nature of economic readiness was not to optimal levels. The economic state of the world made the nature of the depression even more dangerous to all economies. Factors that led to this occurrence are both political and economic, hence the deep scars it left in the world. Economically, the collapse of the Wall Street in 1929 marked the beginning of the economic phase of the Depression (Engerman 289). Before this, the nation was marred with a host of economic issues that contributed to the onslaught of the economy in the nature that it happened.
The main economic factor worth noting is the uneven distribution of wealth in the US; the power that was left to a few of the national populations was too much. The power of the economy fully feted upon a few individuals directly influenced the demand market by creating an even larger gap between the high earning and low earning population. It is evident that low earning folk would spend little and with the end of the WWI, the increased productivity was now a source of surplus commodities. This created circumstances that that further worsened the situation. For example, the economy became dependent on luxury spending from the rich and the introduction of crediting in the economy for the poor. The political role in the causation of the great depression is not overlooked as the Federal Reserve was painted as a major player in this demise of the 1930s. Once the controversies of the Wall Street ensued, they increased the interest rates in order to curb it. However, the move was exaggerated and once the recession set in, Federal Reserve did not employ their powers to curb it.
President Hoover came up with a strategy that he believed would save the situation ion 1932. This was aimed at creating capital for the citizens by cutting the taxes and to stabilize the budget. In my view, this was a great move despite the poor outcomes it yielded. By cutting the taxes, I bel...