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Paper代写:The phenomenon of the great depression

2018-03-08 | 来源:51due教员组 | 类别:Paper代写范文

下面为大家整理一篇优秀的paper代写范文- The phenomenon of the great depression,供大家参考学习,这篇论文讨论了经济大萧条的现象。在1930年的经济大萧条中,美国、德国、日本、智利等国家的经济遭受了巨大的重创,对他们的生活产生了巨大的影响。而这种危机持续了将近5年,期间资本主义国家的工业生产急剧下降,大量企业破产,失业率飙升,甚至引发了国际恐慌。在某种程度上,这更像是一种美国现象,股市、金融危机和政治问题等问题层出不穷。

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Many countries in the world such as the United States, German, Japan, Chile suffered from the great depression almost simultaneously in 1930s, which generated huge impacts on their lives especially in the field of economy according to their annual industrial production and the distribution of the percentage change of the industrial production (Cristina D. Romer 1993). These crises are a clear manifestation of signal of a international phenomenon, but it could be more convincing if it was said to be a national phenomenon for the United States, for the phenomenon and situation was very unique and more extreme in the United States compared with the history before. When discussing about the great depression, vast multitudes of individuals would like to shift the concentration from the world economy to the downturn of the United States’ economy, therefore the great depression is like an American phenomenon.

First and foremost, the New York Stock Exchange crashed in October 24, 1929 (Alford B.W.E. 1996), which was the day called Black Tuesday, falling into disarray. It was the biggest stock market collapse of all time given by the extent as well as duration. Stock index fell to 40.56 from to the highest point of 363 in July, 1932, which declined more than 90%, the most in the history (Murray N. Rothbard, 2000). The impacts on the stock market and the economic situation were dramatic. The most frightening thing is that the collapse of the trigger and the terrible economic policy led to ten years of the great depression. After the First World War, the United States developed in a very safe and stable period, but they did not know that the collapse of the stock would happen in their lives. There were, however, controversies in the society, such as income inequality, improper ownership structure, unreasonable bank structure, deteriorating balance of payment. The crash of the New York Stock Exchange was not only the symbol of the start of the great depression, but also a trigger for its happening. The price of the stock continued to fall, exerting great influences on the whole world. The fall of the price was beyond people’s mind, and they hoped to go back to the good days before 1929, but this disaster lasted for a long time.

Furthermore, the great depression in the United States brought about the financial crisis in 1931. The crisis lasted nearly five years, during which industrial production of the capitalist countries declined sharply, a large number of enterprises went bankrupt. And the number of unemployed rate surged, which was as high as more than 30% (Peter Temin 1993). As a matter of fact, it was the most serious financial crisis in the history of the world. The gold standard and the currency were under great pressure due to the deficit the government and numerous banks have suffered from (Peter Temin 1993). It also spread to other countries and became an international panic. During this period, lots of banks went bankrupt and individuals lost all their properties. The commodity market was shrinking rapidly, intensifying the tariff war as well as the trade war. For instance, the United States increased the average rate of taxable imports to 53.2% in 1930, during which the volume of the world trade dropped surprisingly for the first time along with the other measurement taken by other countries all over the world so as to resolve the recession (Murray N. Rothbard, 2000).

Last but not least, according to the article by Alford,B.W.E, the problems of the economy stimulated the problems of the politics. For many bankers and financiers, the Labor Government did not come up with a practical ways to make things good. Although the government promised to stave off the economic disaster, most measures showed their careless and dishonest managements, adding sense of instabilities to American people. Unemployment and the declining trade still existed for a long time and the whole country was in a mass. It was not until President Roosevelt came to power that he changed his previous government's improper ways, and he truly played a significant role in regulating economic operation.

The Reasons of the Great Depression

The United States seems to be really in prosperity in the summer of 1929-- the overall stock market rapidly rose and all the people seemed to gain benefits and earn money from it. It boosted the economy of the United States and the money gained from the stock market was being consumed in the American economy. There were, however, potential problems hidden in the prosperity, impeding the future economic growth.

First and foremost, the unequal income between the rich and poor was a serious problem. The consumption capacity of individuals has not risen significantly, because the average wage of workers in the 10 years since 1920s has remained unchanged (Cristina D. Romer, 1993). Only 10% of people in the United States invested in the stock market, leading to a widening gap between the rich and the poor. According to the data, about five percent of the people have access to the highest earnings than other people at that period, and their income was approximately one-third of the all the personal income (Galbraith& John Kenneth 2009). An economy with a large gap between the rich and the poor largely depend on two aspects. On the one hand, the only way for the rich to get more money is to invest in existing companies, new industries, etc. One the other hand, there was no need for the rich to buy extra ordinary commodities instead of the luxury products that met their needs (Galbraith, John Kenneth, 1954). The high investment and the expensive goods that being bought could improve the economy, but it was difficult for people to achieve this goal, for not all the people could afford. The controversy shows that it was wrong to depend on the rich people to develop the economy. Unreasonable investment without satisfying the need of the consumption capacity does not make sense, which also led to the reality that the actual economic growth in the United States is slow.

Furthermore, the productions by the industrial products were exceeding the consumption demand of customers (Galbraith& John Kenneth 2009). The widening gap between the rich and the poor in the capitalist society will inevitably lead to the contradiction between social production and consumption, which was not conducive to the healthy development of social economy. Production and consumption of the society must be balanced, and in this way can the social economy run smoothly. National income expenditure could be divided into two respects. One is used to invest in production and the other is for consumption. In the industrial society, the consumption of industrial products accounts for a large proportion of the total social consumption, but the number of consumption volume for each people was limited. The government was likely to made some wrong decisions or predictions towards the need of the market and individuals. In 1929, the over-confident of government caused the so-called inventory recession (Cristina D. Romer, 1993).

Besides, economic growth was too dependent on the stock market. Compared to the investment in technological innovation, many companies were more willing to put money into the lending market, so the capitals would flow into the stock market at the end. Money faded away from the real economy, flowing into the stock market, which laid the basis for future American corporate failures and the great depression (Galbraith, John Kenneth, 1954). Most of the consumptions were from the profits of the stock market, and most of the investments were gathered in the stock market. Once the stock market crashes under such condition, the recession is unavoidable.

Last but not least, the structures of many companies and banks were unreasonable. Many companies used the new structures such as the holding companies or the investment trusts. It means they were easily affected by external reasons such as bankruptcy or default on the bonds. When it happened, the companies would under great pressure. The banks were too vulnerable to face with the depression and people would lose all the money when bank failure occurs.


The great depression is an severe economic crisis originated from the United States, engulfing the entire capitalist world and affecting many countries. It was more like an American phenomenon to some extent. During the period of the great depression, there were numerous problems such as the crash of the stock market, financial crisis and the political issues. Unequal income between the rich and the poor is one of the causes to be blame, which generated the contradiction between production and consumption. There were no denying facts that the blind investment during the great depression was as vulnerable as the resistance of pressure of the bank structure.


Peter Temin, “the Transmission of the Great Depression”, Journal of the Economic Perspectives,30.2(1993):105-121.

The author describes current thinking about the relationship between the gold standard and the great depression and he also looks at the phenomenon of the financial crisis.

Alford B.W.E., “Britain and the World Depression”, The Journal of Finance. (1999)

The author analyzes the influences of the great depression and explains the critical importance to American’s position in the world economy..

Cristina D. Romer, The Nation in Depression, Journal of the Economic Perspectives (1993)

The author examines the ways the United States experienced during the great depression and evaluates the causes of the great depression.

Galbraith& John Kenneth, Cause and Consequence. International Journal (2009)

Authors describe the remedial measures the United States took for the great depression and reveal the cause as well as the impact of the depression.

Murray N. Rothbard, America's Great Depression, Ludwig Von Mises Institute, 2000, Print.

This book is a staple of modern economic literature and necessary for understanding a pivotal event in the United States and even world history. The author introduces the business cycle theory and show imbalances between investment and consumption given by the unreasonable monetary policy.

Galbraith, John Kenneth. The Great Crash, 1929. Boston: Houghton Mifflin. 1954, Print

The Great Crash, 1929 argues and analyzes the fact towards the Wall Street crash of 1929 in the economic history. The author believes that a good understanding of the situation in 1929 is the best safeguard against its recurrence.




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