The Great Depression

Introduction

The article has been written by Christina D. Romer in 2003. This article expounds the overall scenario behind the great depression. It also explicates the causes and effect of it.

I need a response paper to any article within Economics.

Discussion

Main Theme

The Great Depression is prolonged economic crisis in the global economy that began in the United States in 1929, and later in other countries. Officially, it ended in 1940, but the actual U.S. economy began to recover after the Second World War. Determination of the Great Depression is commonly used in relation to the U.S. to other countries for expounding the global economic crisis. This crisis has affected virtually all countries of the West.

The Great Depression was synchronized, comprehensive, and it affected all sectors of the global economy. 

From the standpoint of economic theory, the Great Depression of 1929 in the United States occurred as a result of overproduction and lack of money to buy those goods. Since money was tied to gold, and the amount of this metal was limited, there was a shortage of money, and then the shortage of effective demand for goods and services. Further, the chain produced a "domino effect": a sharp drop in prices (deflation) for goods, bankruptcy, unemployment, prohibitive duties on imported goods, falling consumer demand, and a sharp drop in living standards.

In the beginning, the stock market fell, and just in one day, the shares market fell to $ 10 billion, which meant the disappearance of lending money at a rate of $ 10 billion. Because of this falling stock market, 20-25 million people in the United States suffered losses.

There is another point of view about the causes of the Great American Depression. Great Depression was preceded by a rapid growth in the U.S. economy. Thus, from 1917 to 1927, the U.S. national income increased almost three-fold. 

Before the start ...