Does anyone want to learn about the causes of the Great Depression?

Question

http://www.gusmorino.com/pag3/greatdepression/

Can you list two or three causes in your answer, and relate them to what's happening today with our economy?

Isn't it weird that McCain and Palin are saying that it was higher taxes that caused the Great Depression? A rewrite of history for the unlearned to believe?

Huummmm? Do you agree?

Answer 1

As I recall it was caused by the unequal distribution of wealth and a disparity in the stock market. McCain/Palin need to go back to school. But their not knowing doesn't surprise me. McCain supported a war that didn't need to be and Palin didn't have a clue what the job of the VP actually was. I agree more with Obama's economic plan.

Answer 2

Realizing what occurred within the pleasant depression or WWII will not be a standards for getting into a institution. It's sad but genuine. There is no historical past aspect on the ACT or SAT experiment. While you get the grade in historical past category you can disregard something you realized and still go to a great university and get a best job. If the universities and society as a whole put more of a value on that abilities they'd have identified it. It is historic historical past to them and has no foreseeable relating their lives. Try convincing an 18 year historic it's foremost to understand who the second president is and see what variety of clean (what value does this info have?) appear you get. You might as well ask them in regards to the Andrew Sisters. American history isn't even a requirement in institution. I do know the quote "when you dont comprehend your history you're doomed to repeat it" identical to the relaxation of you, but why would an 18 12 months ancient put a lot weight on learning historical past when he can spend his money and time studying to have a career. It's very major to grasp and your no longer trained until you understand history, but try convincing an 18 yr ancient worried about paying off his scholar loans that. If they don't seem to be required to realize it they are not going to. After they get their category work finished they will spend their free time chasing different 18 12 months olds not learning historical past. (everybody announcing "that's a shame" would do the equal factor if they were 18 once more) If that you could reply one query you'll see why many of those scholars are not able to tell you about things outside their discipline. Who would you hire to construct the bridge that your child's university bus drives over: the man that spent all his time learning civil engineering or the guy that spent half his time finding out engineering and half his time finding out concerning the civil conflict?

Answer 3

Here ya go:



"Many factors played a role in bringing about the depression; however, the main cause for the Great Depression was the combination of the greatly unequal distribution of wealth throughout the 1920's, and the extensive stock market speculation that took place during the latter part that same decade. The maldistribution of wealth in the 1920's existed on many levels. Money was distributed disparately between the rich and the middle-class, between industry and agriculture within the United States, and between the U.S. and Europe. This imbalance of wealth created an unstable economy. The excessive speculation in the late 1920's kept the stock market artificially high, but eventually lead to large market crashes. These market crashes, combined with the mal distribution of wealth, caused the American economy to capsize."



It sounds a great deal like what just happened to us. Twice under REPUBLICAN WHITE HOUSE DOMINATION.





You can read the rest of it below:

Answer 4

Massive leverage in the financial markets.

Protectionism (Hawley-Smoot tariff)

Tightening of credit once the downward spiral began

Taxes going up once the downward spiral began.



Certainly we have had massive leverage in the financial markets. As margin calls come in hedge funds and other leveraged investors are puking every asset they own. That's why even gold is going down. The yen is climbing like crazy against other currencies because the yen was the currency of choice for leveraged players due to Japan's extremely low interest rates.



And the tightening of the creidt markets is with us now too, but not because the Fed is tightening as they did in the Great Depression. This time, it is banks and other lending institutions with too little capital left to lend money to anyone.



After the election, we'll see if we raise taxes and get protectionist.

Answer 5

Lowering of borrowing rates by the Federal Reserve and the majority of stock being bought on margin was the driving forces behind the great depression.



When you borrow a stock on margin you only put up a small % of its value. If for some reason the stock goes down a margin call is issued and you must pay the difference back to the bank. If you do not pay the margin call the stock is sold to repay the bank loan even if it means a loss to both parites.



It was a successive pattern of margin calls that created the depression. Stocks fell, margin calls were issued, nobody could pay. Stocks were sold to pay debts further depressing the stock market. More margin calls were issued, and even more were unpaid, stocks were sold to pay debts, the markets depressed further. It was this downward spiral that drained the banks and made them illiquid.



However your argument is false. McCain and Palin have only stated that the raising of taxes prolonged the depression.

Answer 6

Over the last five years I had begun to have increasingly withdraw into a downward spiral of depression..



But now with the method I can fully focus my energy and thoughts into a decisive line on how to make my life better constantly. And it works like magic! I'm beginning to attract people to me once again and things have just been looking up since then.



Helping you eliminate depression?

Answer 7

Higher taxes did not CAUSE the Great Depression, but it did make things a lot worse. It took until 1954 for the market to recover, and the only reason why it recovered was because of WWII. FDR was not a national hero who saved the country. He made it even worse with his spending on programs and increasing taxes.



Keep watching MSNBC

Answer 8

the stock market has not gone down to the level of the crash in the 1980's yet, so Obama's saying that the Democrat caused financial crisis is like the great depression , is nothing but scare tactic's of a desperate man

the democrats are willing to bankrupt the nation and lose a war, just to get elected , it's sad

Answer 9

those that don't learn from history are doomed to repeat it.



whom ever is the new elected president will be blamed for the worst depression ever. this one will make the '29 look like a minor correction. I hope that i am wrong, but i can read and i see the signs that are repeating. I am preparing, soon who is president will not be the major concern for the masses.

Answer 10

People were using credit to buy everything in the 20's with money they didn't have. So the banks started taking their properties, but couldn't resell them because people didn't have money so the banks went under. Similar to what's going on now. Except that now we have SS and protection, so it won't happen as bad. People need to learn to not be so greedy and just pay for things when they have the money.



And look other places for your news and information. It kind of makes you sound like a moron.

Answer 11

Agreed.. When policies wreck the middle class, the rich eventually suffer.. I think they also fail to understand that the "great depression" was the start of welfare.. lol.. Their policies create the need for what they hate...

Answer 12

underconsumption and overinvestment

Meaning people could not afford to buy products and services because of having no job or low pay job

And top Management making big mistakes just like today!

Answer 13

Deregulation, refusing to accept any form of unemployment and the mind set that everything was going to be OK.

Answer 14

Is it weird? I thought all politicians lie, including McCain, including Plain, including Biden, and including Obama.

If you don't lie, you don't get elected. Simple as that.

Answer 15

LOL!!! They're saying that raising taxes will turn this economy into a depression. Keep watching MSNBC

Answer 16

Not interested in gus's skewed view of things.

Answer 17

No, I did high school already



do your own homework

Answer 18

Because we had a president like Obama will be if elected. You do realize we'll be in another depression right?

Answer 19

Don't tell me... It's Obama's fault!!!

Answer 20

investing in things they couldnt afford



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