the cause was due to the companies buying more then what they needed which case prices to drop and made selling them harder when no one needed them at that time. this in turn for everyone who owned some stocks lost lots of there money sometimes all there life savings.
the steps that where taken by Federal Reserve, Congress and the President were to create the New Deal program, Tennessee Valley
Authority (TVA), which built dams and hydroelectric projects to control
flooding and provide electric power to the impoverished Tennessee Valley
region of the South, and the Works Project Administration (WPA), a
permanent jobs program that employed 8.5 million people from 1935 to
1943. After showing early signs of recovery beginning in the spring of
1933, the economy continued to improve throughout the next three years,
during which real GDP (adjusted for inflation) grew at an average rate
of 9 percent per year. A sharp recession hit in 1937, caused in part by
the Federal Reserve's decision to increase its requirements for money in
reserve. Though the economy began improving again in 1938, this second
severe contraction reversed many of the gains in production and
employment and prolonged the effects of the Great Depression through the
end of the decade.
resources: http://www.history.com/topics/great-depression
No comments:
Post a Comment