The Great Depression Analytical Essay by EL

The Great Depression
This paper looks at the Great Depression and what lessons can be learned from it.
# 4737 | 1,300 words | 7 sources | MLA | 2001 | US

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This paper studies the events that caused the Great Depression and considers whether there could ever be another similar economic downtown by using both the lessons of history and aggregate supply/aggregate demand analysis.

From the Paper:

"The Great Depression, which began in 1929, was an economic slump in North America, Europe, and other industrialized areas of the world that began in 1929 and lasted until about 1939. It was the longest and most severe depression ever experienced by the industrialized Western world (Rothbard 13). Though the U.S. economy had gone into depression six months earlier, the Great Depression may be said to have begun with a catastrophic collapse of stock-market prices on the New York Stock Exchange in October 1929 (Rothbard 17). During the next three years stock prices in the United States continued to fall, until by late 1932 they had dropped to only about 20 percent of their value in 1929 (Bernanke 37).
Besides ruining many thousands of investors, this precipitous decline in the value of assets greatly strained banks and financial institutions, particularly those holding stocks in their portfolios. Many banks were consequently forced into insolvency and by 1933, 11,000 of the United States' 25,000 banks had failed. (Bernanke 41). The failure of so many banks, combined with a general and nationwide loss of confidence in the economy, led to much-reduced levels of spending and demand and hence of production, thus aggravating the downward spiral. The result was drastically falling output and drastically rising unemployment; by 1932, U.S. manufacturing output had fallen to 54 percent of its 1929 level, and unemployment had risen to between 12 and 15 million workers, or 25-30 percent of the work force (Bernanke 42). "

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"The Great Depression" 21 May 2002. Web. 06 February. 2023. <>