Question

In: Operations Management

I need thorough explaination on "The national Confronts the Great Drepression".

I need thorough explaination on "The national Confronts the Great Drepression".

Solutions

Expert Solution

The decade long poverty and unemployment of the US citizens due to the 1929 stock market failure is termed as ‘The Nation Confronts Great Depression’ as in the sentence. This depression came with a slow but very steady pace into the US markets due to many economic factors which included the loss of demand which then caused an imbalance to businesses and thus the stocks failed to create the great depression. Issues like lower housing demands and lowering of Automobile production were two great factors that spiraled into this depression in 1929. The post World War 1 was the time when the US gave the European nations a good deal of debts to rebuild the nations which the European counterparts failed to return increasing the bad debts for the US home markets.

The post-crash made the banks fail a year later in the 1930s which caused the decade long time to recover. The factories closed causing unemployment which further complicated the US economy for the long term of a decade to come out of it with strategies and a model that was meant to be useful. Hence the great depression was an event caused by several factors of which World War 1 was of great importance or cause since it lowered the European imports while giving them debts those turned bad and the economy took a decade to recover and restore the economy of the US on the track. The failure of banks was also a loss for the investors that too had a great effect on the depression of 1920-30s.


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