The great depression Essay Example | Topics and Well Written Essays - 1500 words

The great depression - Essay Example At the same time, inequality grew by 0.1 percent pushing the poor to worse levels while the rich gained more wealth (Mcquaid 636). Evidently, with the rising personal debts and a consistent production of more goods, a balance was unattainable hence triggering a great depression on the lack Tuesday of October 1929. The stock market crashed leading to the worse economic collapse felt all over the world including various industrialised nations such as Europe. Apart from worsening wages, the great depression led to the closure of 11,000 banks out of 25,000 by 1933 in the United States. Notably, the failure attracted a nationwide loss of confidence in the economy. As a result, many people were not willing to invest or meet the high production at the time. Certainly, this aggravated the spiral downfall hence putting into question the relationship build by America from World War I. historically, America emerged from world war I as a major financier of various countries including Europe. Countries like Germany had been weakened by the war and had to pay for war reparations (Freedman 62). It, therefore, asked for a lot of financial assistance from America, which appeared to be enjoying financial stability. Therefore, many countries that suffered from the great depression mainly had debt or credit related issues with the United States. Germany, for instance, had cases of rising unemployment represented by 6 million people, which is 25% of the e ntire German workforce. The great depression was felt in different countries around the globe. It’s huge effects not only forced a new deal in America but directly led to extremism in Germany and most importantly World War II. As a result various key issues contributed to the fall of world economy. Before the industrialization period, limited Americans had a limited access to the banking sector. However, as industrialization gained momentum more banks came into light. Americans