Benjamin Pommer

World Economic Crisis of the 1920s Benjamin Pommer

Seminar paper from the year 2014 in the subject Economics - History, grade: 1,7, University of Applied Sciences Essen, course: Economics, language: English, abstract: The Great Depression was one of the worst economic crises in the history of man-kind. All former great powers suffered from high debts and unemployment. The United States got hit very hard, because of the connection to debt countries, which were additionally indebted among each other like Germany, Great Britain and France. The reasons for the severe effects on the United States can be found in the several fields of economics. The presidents Herbert Hoover and Franklin D. Roosevelt dominated the U. S. re-sponse to the Great Depression. Both presidents had different point of views on the crises, from where they initiated fiscal, monetary and social programs. It was not easy to convince the people of tough measures in times of increasing distrust into economy. The lack of public support in combination with less successful initiatives is one of the reasons, why Hoover failed in the election. All identified lessons learned are not a blueprint for further recessions. The political context and the scientific basis have a decisive impact. Governments, businesses and consumers are responsible for a stable economic environment. Profit has to be on a sustainable basis flanked by moderate monetary measures.