Why the Great Depression Occurred

Introduction As observed by Romer (2003), â€Å"the great depression took place in the late 1920s to the late 1930s and was the longest and most severe depression ever experienced in the industrialized Western world† (p 1). The world wide economic downturn that originated from the United States was characterized by massive decline in output, widespread unemployment, and acute deflation in most economies across the globe (Romer, 2003).Advertising We will write a custom research paper sample on Why the Great Depression Occurred – a Public Budgeting Stand Point specifically for you for only $16.05 $11/page Learn More However, the timing and magnitude significantly varied in various regions across the world with some parts of the world such as United States being adversely affected while other regions were mildly hit. In the United States, the great depression set off in 1929 and continued until early 1933 where it was set on a road to recovery but these efforts unfortunately failed and the American economy was highly characterized by drastic falls in prices and real output (Romer, 2003). In addition, the industrial production of the country’s economy fell by 47% while the real gross domestic product fell by 30% and the whole sale price declined by 33% resulting into deflation; further, the unemployment rate is believed to have exceeded 20% which negatively impacted on the purchasing power of the individuals consequently reducing aggregate demand (Romer, 2003). Poverty and despair were the main features of the great depression in American region with most people being unable to access the basic needs of food, decent clothing and shelter and relying on aid from charity organizations (Burgan, 2001). The depression was the worst to ever hit the nation and when president Franklin D. Roosevelt brought new policies and ideas to Washington, there was a link of optimism in the region but this was short lived since the depr ession worsened in 1938 and did not end until the country went into world war ll in 1941 (Burgan, 2001). Factors That Led To the Great Depression The prevailing government policies at the time highly facilitated the occurrence of depression and the failure and derailment in recovery of major economies. From 1929-1933, the American economy experienced substantial reduction in money supply from the federal reserves (Edwards, 2005). This, coupled with subsequent bank failures served to intensify monetary contraction in the economy and destabilize the economy which precipitated the occurrence of depression (Edwards, 2005). Scholars believe that substantial decline in money supply which was attributed to Federal Reserve decisions had severe contractionary effects on overall output in the economy as well aggregate demand (Romer, 2003).Advertising Looking for research paper on history? Let's see if we can help you! Get your first paper with 15% OFF Learn More This may have si gnificantly influenced people’s decisions to spend as there was widespread fear and uncertainties with consumers and business owners anticipating decreases in wages and prices in the future (Romer, 2003). To further worsen the situation, most states prohibited banks from diversifying their portfolios across jurisdictions which significantly promoted bank failures while in countries like Canada which allowed nationwide bank branching, incidences of bank failures during the period were not experienced (Edwards, 2005). Bank failures led to widespread bank panics across the American economy whereby depositors lost confidence in the solvency of banks consequently withdrawing their deposits from banks (Romer, 2003). Increased withdrawals by depositors forced banks to liquidate loans in order to raise the required money which served to increase bank failure in United States (Romer, 2003). The early 1920s was characterized by tax reductions which facilitated economic boom in the Amer ican economy during the period (Edwards, 2005). However, President Hoover signed a revenue act in 1932 which created a provision for significant tax increment in the region increasing the tax rate from 25% to 63% while President Roosevelt further increased individual and corporate taxes with the highest individual rate increasing to 79% (Edwards, 2005). The tax increment killed the laborers’ incentives for work as well as investment and entrepreneurship consequently reducing the amount of spending which intensified the effects of depression and frustrated the efforts of recovery (Edwards, 2005). In addition, the Smoot-Hawley trade act which had been established to boost farm incomes by reducing foreign competition in agricultural production in America may have played a significant role in reducing world trade during the period of depression (Edwards, 2005). The trade act had raised import tariffs to an average of 59% on more than twenty five thousand products which prompted o ther countries to retaliate by imposing increased restrictions on United States’ products consequently reducing trade such that by 1933 the overall international trade had reduced by two thirds of the level prevalent before the recession (Edwards, 2005). However, some scholars believe that this policy had minimal significance in the occurrence of the depression but may have contributed to extreme decline in world price of raw materials which resulted in severe balance of payment problems for primary products exporting countries (Romer 2003). Another damaging trend that may have facilitated the occurrence of the depression was the prevalent inequality in wealth distribution whereby in 1929, the richest 24000 families in the US owned 34% of all the monetary savings in the country while an approximate 21 million families lacked any savings (Burgan, 2001).Advertising We will write a custom research paper sample on Why the Great Depression Occurred – a Public Budgeting Stand Point specifically for you for only $16.05 $11/page Learn More Consequently, only few Americans could afford to locally produce goods despite the fact that factories kept on producing goods which led to under consumption which further led to the weakening of the economy (Burgan, 2001). Conclusion The great depression caused devastating effects to major economies of the world and adversely affected international trade. Numerous measures implemented by the government proved fruitless in containing the situation and the contemporary economies should learn from this occurrence in order to avoid incidences of depression in the current dynamic economy. Reference List Burgan, M. (2001). The Great Depression. Minneapolis: Compass Point Books. Edwards, C. (2005). The Government and the Great Depression. Retrieved from https://object.cato.org/sites/cato.org/files/pubs/pdf/tbb-0508-25.pdf Romer, D. C. (2003). Great Depression. Web. This research paper on Why the Great Depression Occurred – a Public Budgeting Stand Point was written and submitted by user Arielle R. to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.

The Civil Rights Movement of the 1950s essays

The Civil Rights Movement of the 1950s essays Several factors contributed to the rise of the African-American protests leading to the civil rights movement in the 1950's. A prominent factor in the shaping of the Civil Rights Movement was the legacy of World War II. After the black men and women served in the military or worked in war plants, they developed a broader view of their place in the world than compared to their isolated lives in the 1940's. Another important factor is that the urban black middle class began to grow and flourish after the war. Most of the drive and force for the civil right movement came from leaders of urban black communities-ministers, educators, professionals, and many black students from universities and colleges. Television, media and other forms of culture were another factors in the rising consciousness of racism in America. This generation was constantly reminded more than any other generation before, of how the white Americans lived and how unequal and unjust the African Americans were treated . Television showed demonstrations on a national level, causing activism in one community to spread to others, and inspire similar protests. Another prominent factor in the shaping of the Civil Rights Movement was the arrival of Cold War politics. After the war, the United States was in a difficult situation in regards to the present international concern for civil rights. Foreign delegates from the United Nations were able to witness the degree of racial discrimination present in the United States. This was an embarrassment to Americans, who were trying to present the United States as a model nation to the world. Black Americans began to reach out to the world for help, criticizing the US Government through various forms of articles and public speeches. Black leaders spoke openly about the cruelty and inhumanity in the United States. Comments such as these attracted the attention of many people across the world, ultimately ruining the United States' fo...

Brown vs. Texas

Brown vs. Texas Criminal Procedure and the Constitution Due date 5/May/2012 Brown vs. Texas was a case heard by the Supreme Court in 1979. It determined that the defendants arrest in El Paso Texas, for refusal to identify himself in a high crime area, was not based on a reasonable suspicion and violated Mr. Brown’s fourth amendment rights. This was an important case for the stop and identifies statutes in the United States. One afternoon a police cruiser was driving downtown and noticed two men walking away from one another in an alley in an area with a high incidence of drug traffic. The Officer stopped Mr. Brown and asked him to identify himself and explain why he was in the alley. Mr. Brown refused to identify himself and was arrested for violating a Texas statute which makes it a criminal act for a person to refuse to give his name and address to an officer who has lawfully stopped him and requested the information. Mr. Brown was convicted and fined for violating the Texas statute. Mr. Brown appealed his case to the Supreme Court on the grounds that the Texas statute that required him to identify himself to the Officer was a violation of his fourth Amendment rights. The officers did not have any reasonable suspicion to believe that Mr. Brown was engaged or had engaged in criminal conduct. The Supreme Court heard the case and overturned the decision citing the precedent set in the Terry vs. Ohio case. It stated that Detaining appellant to require him to identify himself constituted a seizure of his person subject to the requirement of the Fourth Amendment that the seizure be reasonable. (Cf. Terry v. Ohio). The Supreme Court also stated that the officer’s actions were not justified on the ground that they had a reasonable suspicion, based on objective facts, that he was involved in criminal activity. The Supreme Court overturned the conviction.

Analytical Chafetz & Nelson and Toomeys essays Essay

Analytical Chafetz & Nelson and Toomeys essays - Essay Example Morris E. Chafetz, in â€Å"The 21-Year-Old Drinking Age: I Voted for it; It Doesnt Work,† and Toben F. Nelson, and Traci L. Toomey, in â€Å"The Drinking Age of 21 Saves Lives,† adopt opposing views on this issue. Chafetz argues that the MLDA of 21 â€Å"has not worked,† and is not linked to reduced drunk-driving fatalities (7). He holds that enforcing a minimum legal age for drinking does not take into consideration the deaths caused by alcohol off the highways, and drives teenagers to binge drinking in unsupervised surroundings. On the other hand, Nelson and Toomey take the position that the MLDA of 21 has reduced drinking-related deaths, and decreased binge-drinking in underage college students. Although both authors have credibility and are knowledgeable and logical about the subject, and Chafetz is more accommodating of opposing viewpoints, Nelson and Toomey make a more convincing argument as their stand is supported by extensive references to research stud ies. Both the essays are authored by writers with impeccable credentials. Chafetz is a credible speaker in the MLDA debate, as he is the founder of the National Institute for Alcoholism and Alcohol Abuse and The Health Education Foundation in Washington. His reputation is further bolstered by the fact that he was a member of the Presidential Commission on Drunk Driving, Director and Executive Member of the National Commission against Drunk Driving and the Presidential appointee at The White House Conference for a Drug-Free America. He is also a Doctor of Psychiatry, with a long history of association with social issues, such as alcoholism and drug abuse. Chafetz’s credentials are more than matched by Nelson and Toomey, who belong to the University of Minnesota’s School of Public Health. Their argument is further supported by a group of academicians and researchers. The reputation of the writers contributes to the trustworthiness of the essays and makes them both credible. Similarly, both the essays

Cloud computing (Opportunities and concerns (security)) Essay

Cloud computing (Opportunities and concerns (security)) - Essay Example Cloud computing greatly scales down the business resources, this is because you do not have to own these resources but you can get them through the web. These resources include software and business applications, development and runtime platforms and infrastructure (Hauck et al 2010). Hayes (2010) describes this phenomenon as programs and data being transferred from personal computers and corporate server rooms and being installed in constellations or clouds. He cites an example of making an excel spreadsheet using Google docs. In this case you may not have the software installed in your computer but you can access it over the web services and web APIs. Cloud computing has come with several opportunities especially for the business people but there has also been several security concerns over this innovation. This paper discusses the opportunities availed by cloud computing and also the security concerns. 1.1 Opportunities 1.1.1 Time to market products and services can be reduced Clo ud computing provides businesses with an opportunity to market their products via the services available on the internet. The old method was that one had to use the computer software to publish posters to advertise their products and services. These posters had then to be distributed to the potential consumers. However, businesses can now use cloud based systems such as emails, Facebook and Twitter to market their products and services. I think this is a good opportunity for businesses that have embraced technology. 1.1.2 Reduction in cost of IT investment Cloud computing offer businesses and organizations an opportunity to reduce on their cost of investing in information and technology. Traditionally, businesses, individuals or organizations had to install the software they required and maintain them. This software comes with a price and they may need regular updates. The software may also crash and lead to lose of all your data. The introduction of cloud marketing has reduced the risks and costs in information technology. The software or programs are available over the internet and you only pay on demand. You do not need to pay for the maintenance cost and the risk of data loss is greatly reduced. However, I think cloud computing also needs some investment in IT. 1.1.3 Reduction of barrier of entrance The introduction of cloud computing is a game changer for rules of competition in the business sector. Traditionally, only large business could manage to own and use computer services and programs in their business activities because of the cost of installation and maintenance. Cloud avails the infrastructure to all business on rent. This offers small and medium enterprises an opportunity to efficiently use the infrastructure and enjoy the benefits as large firms. With that, the platform of competition will be levelled. This might be true, but it is my view that it is the already established companies that can better utilize the opportunity of cloud

European colonization Essay Example for Free

European colonization Essay Religion was a key factor for the European colonization but these events were all started by the Protestant Reformation. The Protestant Reformation triggered the events leading to the persecution of many people in many European countries. The Protestant Reformation was caused by Martin Luther and he opposed the church and made his own Lutheran Church. People all over Europe were inspired to make their own churches and religious beliefs which made religious persecution occur in many of the countries because they tried to suppress the rebellion of the Protestants. Religion had a profound effect on colonization because the Protestant Reformation caused great turmoil which lead to the persecution and conversion of the New World. Certain groups of religions were persecuted for the way they believed such as the Puritans and Huguenots after the Protestant Reformation. The Puritans arose after King Henry split from the Catholic Church because he could not get a divorce from his wife so he made the Anglican Church which led to the creation of these Puritans. The Puritans wanted to purify the Anglican Church of all the Catholic beliefs which caused much of England furious with these people and lead to the persecution of these people. The Pilgrims were a group of Puritans who were known as Separatists who wanted to break away from the Anglican Church and found the colony of Plymouth. Another group of Puritans followed John Winthrop who was convinced there was no future in England for Puritans made a joint-stock company called the Massachusetts Bay Colony and founded the colony of Massachusetts with several towns and a capital named Boston. This lead to even more colonization as conditions worsened in England which made thousands flock to the colonies which is known as the â€Å"Great Migration†. Even in these colonies which were found to stop persecution and have religious tolerance there was still persecution and this led to the creation of more colonies and so forth many people were banished from Massachusetts and made colonies of their own due to this religious persecution. The Huguenots were French Protestants which led to colonization of the New World by the French because in that time France was mainly a Catholic country and under King Louis XIV one million people settled South Carolina, while other found sanctuary in Rhode Island, New York, and Virginia. The religious freedom of some of the colonies brought many other people from different countries which increased colonization as well such as the Scots-Irish, Germans, and etc. Religious persecution brought people from all the European empires to the New World. The Spanish and French wanted to convert these â€Å"Indians† in to Catholicism so they could be favored by God as a holy country and were inspired to spread. This was also one of the main reasons the Spanish Monarchs wanted to colonize the New World. There were missions built all over New Spain so they could convert these Natives which indirectly made the Spanish colonies spread throughout much of what is now Latin America and the South-west region of the U. S. There was also a road that linked these missions together is what is now modern day California known as El Camino Real or the Royal Highway which spread the Spanish Colonies. There were also Jesuit priests who went to some of the farthest reaches or most hostile parts of New Spain to convert these Natives which spread these colonies further as the Jesuits built more and more missions in various places that were not yet colonized. These Jesuits also worked with the French to convert these Native Americans to Christianity in the New France region. They were known as â€Å"black robes† by the Natives and the Jesuits tried to live with the Natives and convert them to the Catholic Faith. They also built missions in the New France region making New France larger as they converted more Natives. This increase in land allowed the people to spread and populate more land so more settler arrived. The Spanish and French kingdoms were driven to convert these Native Americans and this allowed them to spread in more and more land available so more people came and colonized New Spain and New France. This urge to colonize and convert was caused the Protestant Reformation. The Reformation made the events and steps which caused the church to be severed and caused conflict and persecution all over the European empires. People were inspired by Martin Luther bravery and made their own churches to defy the Catholic Church as it got weaker. This created the urge for most of the empires to convert the natives and spread. Religion had a profound effect on colonization because the Protestant Reformation caused great turmoil which lead to the persecution and conversion of the New World.

Western Perceptions of the American Indian Essay -- Indians Native Ame

Western Perceptions of the American Indian In this reflective essay, I discuss how the Europeans perceived the American Indians and the factors that shaped these perceptions. I have paid particular attention to the first-hand accounts of the encounters with the natives, written by Western explorers, missionaries, and visitors to the New World. It is particularly interesting to note how these accounts were distorted and exploited by different groups, each trying to mold the situation in their own way. We shall start with a reflection on cannibalism, and the myriad myths it engendered, since it can be argued that nothing about the Indians alienated the Europeans as much as this bizarre practice. Cannibalism, formally known as anthropophagy, was an anathema to Europeans armed with Christian precepts about morality and kindness to one’s fellow man. It was evidence of these acts that served to perpetuate many of the negative portrayals of the Indians that spread throughout the old continent. While the Europeans were certainly disgusted by cannibalism, nevertheless, it still served to intrigue them. Indeed, many explorers, upon arriving at the Americas, sought to witness it for themselves. We can deduce from these tales that there is something inherently exotic about the concept of eating human flesh that has captivated the human imagination for millennia. The noted anthropologist William Arens is known to have said that â€Å"Cannibalism is so good to think about that the human appetite is not easily satisfied.† Some theorists have suggested that myths of cannibalism were exploited to demonize those whom the Westerners sought to colonize. (Some radical historians even propose that tales of cannibalism may have been mere fabri... ...--------------------------------- [1] Kimberle S. Lopez, Latin American Novels of the Conquest (London: University of Missouri Press, 2002) 30. [2] Geoffrey Symcox, ed. Italian Reports on America 1493-1522: Letters, Dispatches, and Papal Bulls. (Belgium: Brepols Publishers, 2001) 43. [3] Bartholome de las Casas, Brief Account of the Devastation of the Indies. (1542) [4] Michel de Montaigne, â€Å"Of Cannibals†, In Selected Essays of Montaigne, trans. Donald M. Frame. (New York: Walter J. Black, 1943) 85-6. [5] Lynn Glaser, America on Paper: The First Hundred Years (Philadelphia: Associated Antiquaries, 1989) 161. [6] Bart L. Lewis, The Miraculous Lie: Lope de Aguirre and the Search for El Dorado in the Latin American Historical Novel (New York: Lexington Books, 2003) 8. [7] Lewis 12.