Instructables

why did the great depression take place in1929? ?

and what was it that actually happened?

jtobako3 years ago
Kids wouldn't do their homework, resulting in failing grades and lowered allowances.

You get what you pay for : (
afridave (author)  jtobako3 years ago
perhaps the depression was caused by people getting what they didnt ever pay for?
Haven't read much history, huh?

Look to hard money policy (Hmm...are we about to repeat history?) and the lack of social programs in that age.
afridave (author)  jtobako3 years ago
ok let me ask a more direct question which i dont quite understand........what effect did USA abandoning the gold standard have on all of this? Wasnt the gold standard intended to prevent this?I know its got to do with liquidity somethings not making sense.Yes this recent reccession has been hard especially here in the developing world.We are sitting on something like 25-30% unemployment.The best way to prevent recession is not to have debt (I have a very small morgage)Buying clothing,food etc on credit is just crazy.
The US abandoned the gold standard so that they could increase the amount of money available. With hard money, there is an absolute limit on the amount of cash available (in tons of metal), so the more things are available to be purchased (including labor) the less they are worth (deflation) so money becomes more valuable the longer you have it (so you don't lend it except at high rates of interest).

Best way to prevent recession is to be satisfied with a very small, sustainable growth with lots of looking to the future. Debit has nothing to do with it-a recession is just not making as much this 1/4 year as in the previous 3 months : O In the last few years, a large amount of debt was recycled in short installments (get a loan this year to pay off last year's loan) so when something shook the 'guarantied' value of the loans, no-one would offer a new one but expected the old ones to be paid back...robbing Peter to pay Paul only works as long as Peter has money.
afridave (author)  jtobako3 years ago
Ok thanks that makes sense,but here we are told something a bit different as this country is striving for 6% growth to releive poverty and create employment .I think this may be unrealistic .Im stuck on this debt thing because about 3 years ago the credit situation here was ridiculous ,Almost every day there were things in the post box ,sms,etc offering loans for huge amounts of cash almost on a sort of no questions ask basis.Every dept store,petrol station etc had some or other credit scheme going.People were buying stuff like there was no tomorrow.Now its completely the opposite as all are in debt and there is nothing going on .Im in the international (and local) transport game and this industry has been hard hit ,if they dont trade we dont transport.
Many of the smaller guys have gone out of bussines and many have sold of there vehicles for next to nothing.It is however getting better.
Blofish3 years ago
Please correct me if Im wrong...
People were investing in company and materials with only a note to pay and living high. when they went to collect all the money was spent... Im I on the right track?
blkhawk3 years ago
After World War 1 the US enjoyed a brief period of economic prosperity (the Roaring 20's). During that time the production of manufactured goods met the demand but at the critical year 1929 when the stock market crashed, the US manufactured more goods that it could sell. Goods where made but no longer people could afford them. Added to this was the hysteria when people tried to liquidate their assets but banks did not have enough cash. Factories and businesses closed, people became unemployed, homes and farms foreclosed. In Germany people drove wheelbarrows in order to get paid with German marks and a loaf of bread cost as much money that you could fit in a suitcase.
afridave (author)  blkhawk3 years ago
yip it is scary that this can happen,I live next door to zimbabwe so ive seen something very similar .Ive got a 100 billion zim dollar note on my fridge door ,its worth nothing ,its got an expiry date on it like a bottle of milk ,im trying to get hold of a trillion dollar note.
NachoMahma3 years ago
> why did the great depression take place in1929?
.  WWI had the rights to 1914-1918 and WWII called dibs on 1939 through 1945, so The Great Depression got stuck with the sucky period in between.

> why did the great depression take place in1929?
.  The whole country was in a state of terminal ennui after WWI and just couldn't bring itself out of a nosedive.
I like you. ;)
. Aw, shucks, Ms Rain. >blushes<
afridave (author)  NachoMahma3 years ago
yip i agree that ww1 has a lot to do with it,debt ,finance ,loans,the wiping out of a whole generation of educated people,wwi was truely a great disaster and a watershed in history.
orksecurity3 years ago
You can answer this faster and better by websearching. (The goal of homework is for you to develop the skills you'll need to answer these questions in the future.)
afridave (author)  orksecurity3 years ago
personally i always preferred the library but alas no time to do that anymore.anyway its your thoughts and ideas im after not the facts,you could say im a amature anthrapologist and your my study material.
Sorry, man. Unless it's an anthropology class, studying us doesn't teach you what you need to know. If the library, and websearch, are taking you too long then you need to work on either your research skills or your time managements skills, and us saving your butt will put you in a *worse* position next time around.

Also, frankly, this is not a topic for Instructables Answers. There's no how-to aspect. If you're going to do online inquiry as part of your research, part of the skillset you need is learning to find the right places to ask.

Finally: This was not a "smart question". Blunt but excellent advice: http://www.catb.org/~esr/faqs/smart-questions.html

Seriously-- this isn't what you asked for, but it IS actually the answer you need.
afridave (author)  orksecurity3 years ago
ok fair enough,i conceed it was a silly question and asked in the wrong place and i shall try to behave myself.
afridave (author)  orksecurity3 years ago
and this indeed is my homework.
+1
seandogue3 years ago
Hesus Christos. The man is 43 years old. It may or not be a pointed question, but I doubt that it's Homework.

Here's an answer. The aristocrats and their neuvo riche sycophants bought into too many ponzi schemes, resulting in the better part of the industrialized world suffering for 10 years. Sound familiar?
afridave (author)  seandogue3 years ago
yip it sounds familiar and yes its a pointed question,i like opionions and ideas and you are a good source to get them thank you.
The great depression didn't take place in 1929, the great CRASH happened in 1929, it LED, according to Ben Bernanke, chairman of the US federal reserve and an economist who made a special study of the period, to the great depression of the 1930s because of a failure by many nations to loosen the money supply, which is why, in the recent crash, governments have fallen over themselves to ensure that liquidity was injected into the system.

Steve
kelseymh3 years ago
Too much water and oil were pumped out from underneath the U.S., and the whole country sank into the resulting depression.