However, it was the effects of the Great Depression in Germany that brought the Nazi Party to its first real nationwide importance. The rise in unemployment in 1929–30 provided millions of jobless and unsatisfied voters whom the Nazi Party exploited to its advantage. From 1929 to 1932 the party vastly increased its membership and voting strength; its vote in elections to the Reichstag increased from 800,000 votes in 1928 to about 14,000,000 votes in July 193. By then, big businesses had begun to finance the Nazi party because of tax increases and communists. The effects of the great depression caused mostly by Wall Street crash and therefore the American investors urgently needed the return of money they had lent to businesses.
The Great Depression was a severe period of poverty and tragedy. It effected many other countries not just America; especially in Europe, where many countries had not fully recovered from the aftermath of World War I. The cost of World War I weakened the ability of the world to respond to a major crisis. America alone had ten billon dollars of debt from the war. In Germany America’s economic failure contributed to the rise of Adolf Hiltler, so the Stock Market Crash had a domino effect on our country and others.
The Causes of the Great Depression The Great Depression was an economic downfall that to this day is the worst economic downfall in U.S history. The depression started in the United States. People all over the world were affected by it, especially in Europe, Germany, Great Britain and other industrialized areas of the world. Mainly because America was a big creditor to those countries after World War I. The Great Depression lasted in America for at least ten years, but it took twenty-seven years to get the economy back above depression levels.
Perhaps the worst economic downturn in the history of the United States occurred from 1930-1939. The Great Depression led to domestic and international crises effecting the poor and wealthy alike. Many financial experts today continue to debate the cause of The Depression, although most agree that several events led to the economic decline. The famous stock market crash on October 29, 1929 is just one of many causes economists believe led to The Great Depression. Known also as Black Tuesday, October 29th left stockholders shattered with recorded losses reaching $40 billion dollars (Kelly, n.d.).
This life changing experience shows how extreme the depression was. One day you had money in the bank, you had a job and your house. Then the next, the banks fail due to the loss of money on the stock market, as companies couldn't get loans and people had no money, industries were failing and they had to dismiss mass workers at their factories and offices. Due to the bank losing your money then not having a job, you had no income. This meant the house you was buying or renting, would be repossed as you couldn't keep up the payments.
One reason is because of margin trading. When one does this one borrow money from a broker who borrows money from a bank. If the stock goes up everyone makes money, but if it goes down then everyone loses and eventually the owner has to sell his stock. Thus depressing the market even more. In addition to that, the stock market crashed because of a weak-banking system and because of the fact that the Government allowed businesses to make decisions even if it hurt everyone else.
income inequality. Sixty-one percent in this ABC News/Washington Post poll think the wealthgap is larger than it’s been historically. And despite longstanding public concerns about activist government, six in 10 also say the federal government should seek to reduce that differential. The public’s concern is buttressed by a recent Congressional Budget Office estimate that the wealthiest 1 percent of Americans have nearly tripled their incomes since 1979, while the bottom 80 percent of earners have seen their share of the nation’s total income slightly decline. This poll, produced for ABC by Langer Research Associates, finds that 37 percent perceive the wealth gap as “much larger” than it’s been; just 5 percent think it’s smaller.
The UK’s current level of unemployment is at 2.62 million (BBC News Business, 16th Nov 2011) which has remained high since the global downturn at the end of 2008. In the classical view, unemployment rates are associated with the real wage rate. Unemployment occurs because wages are too high and above the market clearing level. This causes an excess of supply. Trade unions exert pressure on firms to raise real wages which puts the real wage level above the market clearing level and is blamed for an increase in unemployment.
America was thrown into desperation as the stock market crumbled, marking the official beginning of the worst economic crash in the history of the world. Banks shut down, people became bankrupt and the number of unemployed reached one quarter of the workforce. Farmers needed to produce more goods for the same amount of money; which led to a huge seven-year drought. ‘The dirty thirties.’ When thousands of workers migrated to California with a hope of achieving ‘The American Dream.’ Steinbeck was interested in those who
Many banks declared bankruptcies because they could not get back their money from stock investors. Thousands of banks failed to keep the money from flowing to the market that resulted in a widening circle of bankruptcies and job layoffs.Democrat Franklin D. Roosevelt won the presidential election by a landslide over Herbert Hoover in November 1932 and was inaugurated the following March. He had the first presidential speech when “the stock market was down eighty percent from its 1929 high, almost half the banks had failed, the GDP was down fifty percent, and unemployment stood at twenty five percent” (79). Franklin D. Roosevelt expressed the problems that Americans needed to overcome, and gave out the New Deal programs started from1933 to 1939 that were successful in addressing the Great Depression. The first phase of the New Dealwas called relief that helped millions of suffering Americans as soon as possible.