Literature Review – the Great Depression
This abruptly increase was caused by the crash on Wall Street market and the past crises. The author also mention that is was too difficult for one quarter of women to find a job to help to support their families, so the poverty and consumption of commodities decrease as well, leading to an overabundance of supplies in the market. Critique Its seems that, the great crash on the Wall Street market had a huge impact in the rates of unemployment during the crisis, leading to a general panic not just for consumer but suppliers as well since they were having an overstock in supplies since the people did not have enough money to buy goods.
Source: Historical Statistics of the United States: Millennial Edition, ed. Susan Carter, Scott Sigmund Gartner, Michael Haines, Alan Olmsted, Richard Sutch and Gavin Wright (Cambridge: Cambridge University Press, 2006), http://hsus. cambridge. org/, accessed 8 August 2012. Changes in the behaviour of the population were also a factor in this crisis. The author mentions that in 1929 the rates of suicide increase rapidly since many companies were ruined or in bankruptcy. Another change was the rates of fertility and family, which decrease in a nearly 20% by 1934.
Many young couples were afraid of having children for their finances, the widespread poverty was affecting all the aspects of a family life and women prefer not to have children. Finally, the changes in the consumption of the people, the people of United States stopped to buying unnecessary goods, and decrease its attendance to cinemas and the buying of tickets to theatres, going in holidays, candies and sweets even toys for children. Critique Due to the increase in the poverty and unemployment, the population was limited by its resources and could not afford to buy good that were unnecessary.
The people were consuming its good really slowly taking care of exploit to its maximum their products limiting the consumption. The other problem was that the people did not want to have babies and it was committing suicide due to the crisis. Source: Centers for Disease Control, National Center for Health Statistics, Vital Statistics, “Table 1-1. Live Births, Birth Rates, and Fertility Rates, by Race: United States, 1909-2000” http://www. cdc. gov/nchs/data/statab/t001x01. pdf, accessed 8 August, 2012. Historical Statistics of the United States: Bicentennial Edition, Colonial Times to 1970, Vol. (Washington DC: 1975), 58, http://www2. census. gov/prod2/statcomp/documents/CT1970p1-03. pdf, accessed 9 August 2012. According to Ben Bernanke, the stock market crash and the subsequent Depression were in fact caused by tight monetary policies that the Federal Reserve instituted at that time. The bad policies, the lack of education in important matters of credit, were also some of the causes. When the market crashed, many investors were selling dollars for gold, which cause a run on of the dollar; therefore, the Federals reserve bank raised the interest rates to preserve the value of the dollar, leading to more bankruptcies.
Moreover, all the investors were taking their money from the banks, generating panic in the population; in fact there was not enough money in circulation to get the economy working. Critique Its seems that the policies adopted by the federal reserve bank were the wrong, leading to a financial crisis, that let many people living in the misery. Maybe if the decision were not surround it by so many doubts this crisis could be avoid it. Source: K. Amadeo. 2010. US Economy. [ONLINE] Available at: http://useconomy. about. com/od/grossdomesticproduct/p/1929_Depression. tm? p=1, accessed 9 August 2012. Conclusion In conclusion, it is possible to observe that some of the authors are strongly agree that this was one of the most critical crises in the history of the United States. However, some of the authors’ addresses in this review have some disagreements in the causes of the crisis, some of them argue that the crisis was causes by the lack of education of the people, other in contraposition says that the Federal Reserve Bank was the responsible for all the bad decision that they make.