The causes of the Great Depression

The Great Depression started in 1929, especially on October 29. The world’s economy fell and it was the bigger economic depression in the 20th century. The crisis began in the United States. It had devastating effects on every country even if it was rich or poor. International dropped by half to two-thirds: personal income, tax revenue, prices and profits. That was a hard shock because the citizens were dependent on heavy industry. Farming and rural areas had prices fell by sixty percent. A lot of people lost their job and they were dependent on primary sector industries like farming, mining and logging.

In team, government and business spent more money in the first half of 1930 than in the previous year. Clients lost in the stock market with cut on their expenditures by ten percent. The major depression was from country to country. The factors were massive bank failures, the stock market crash and supply and demand.

Historians found a hypothesis cause and it was join to the question How to avoid a future depression? The search found information is about a failure on the government efforts, the bank failures and the control on money supply. One part of people believes it was a failure of the free markets and the other part believes it was a failure of government that was the problem.

Historians found some points of view on some theories on classical economics: monetarist, Austrian economics and neoclassical economic theory. The effect of money supply and the central banking decisions lead to overinvestment and the supply of gold including production and consumption.

Keynesian models including institutional economics, to underconsumption and overinvestment, malfeasance by bankers, industrialists and incompetence by government officials. The point of view is that was a lack of confidence. Many people thought they could make more money by keeping clear on the markets.

The Marxist critique of political economy is the tendency of capitalism to create accumulations of wealth, leading to over accumulations of capital and cycle of devaluations economic crisis. The Great Depression was unavoidable under free-market capitalism, no restrictions on accumulations of capital other than the market itself.

In 1930, credit was available at low rates but the citizens wasn’t agree to add new debt. Prices began to decline, the conditions were worse in farming areas and unemployment was high. The way was different in each country because the government made our own conditions. The desperate citizens turned to nationalist demagogues (Adolf Hitler).

Warning letter

Kraft Canada

95 Moatfield Dr Don Mills

Ontario M3B 3L6

Ms Shanna Myers

51 Ciro Rd North

Branford

April 8

Dear Ms Myers

Warning

Members of your team work let us know than your behaviour is upsetting. We had to consider four points on the information we got from your colleagues.

This list is about your behaviour perceived during your work time.

-She is never ready at time for meeting, appointment or work.

-She don’t work when she is in team because she don’t communicate with everybody.

-She is not happy to be there and she is not enthusiastic on her work.

For advice you should talk more during the meeting and with your partners. Take more initiative and be autonomous. Smiling to your colleagues and the clients. The most important be happy in your work.

We are sorry to tell you that if you are not to improve your behaviour you will have to leave our business. If you have a problem with somebody or you don’t like something in the business, come to meet a supervisor for correcting the mistake before a catastrophe.

Sincerely

Rachel Guy

Sales manager