By Peter Clements (Wr
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Additional resources for Access to History for the IB Diploma. The Great Depression and the Americas 1929-39
It is clear that the 1920s were not a prosperous time for the Native Americans and African-Americans. Without including them, it is difficult to state that the foundations of prosperity were broad and solid. 46 Chapter 2: The Wall Street Crash and the causes of the Great Depression in the USA 5 In the conclusion, be sure to offer final remarks on the extent to which prosperity was based on solid foundations. An example of a good concluding paragraph is given below. In conclusion, it is clear that the prosperity of the USA during the 1920s was based on weak not strong foundations.
Other economic historians, however, have been less critical. The American economy seemed to be doing well especially when compared to others, notably those in Europe. After all, the figures denoting growth seem to speak for themselves. It is also important to note that the capitalist system survived the coming financial collapse almost intact. Many of the manufacturing and marketing companies of the 1920s have continued to operate to the present day, as have the banking and investment houses. 39 President Hoover had no doubts as to the strength of the economy; at the end of the 1928 presidential election campaign he made a speech as reported in Source F.
Therefore, the industries that supplied these products in the USA found demand slipping further. The power of advertising, for example, had little influence on a people who increasingly had nothing to spend. All this was eventually to lead to a massive level of company cutbacks and often bankruptcy. As workforces were laid off, there was even less money within the economy for spending. This led in turn to a further slowing of the economy as it ground its inexorable way into a depression. Collapse of credit The stock market crash led to the collapse of credit.
Access to History for the IB Diploma. The Great Depression and the Americas 1929-39 by Peter Clements (Wr