Instruct: Given a question, retrieve documents that can help answer the question.
Query: What was the main cause of the Great Depression?
Second, there are the monetarists, who believe that the Great Depression started as an ordinary recession, but that significant policy mistakes by monetary authorities (especially the Federal Reserve) caused a shrinking of the money supply which greatly exacerbated the economic situation, causing a recession to descend into the Great Depression. Related to this explanation are those who point to debt deflation causing those who borrow to owe ever more in real terms.
In the United States, the Long Depression began with the Panic of 1873. The National Bureau of Economic Research dates the contraction following the panic as lasting from October 1873 to March 1879. At 65 months, it is the longest-lasting contraction identified by the NBER, eclipsing the Great Depression's 43 months of contraction. Figures from Milton Friedman and Anna Schwartz show net national product increased 3 percent per year from 1869 to 1879 and real national product grew at 6.8 percent per year during that time frame. However, since between 1869 and 1879 the population of the United States increased by over 17.5 percent, per capita NNP growth was lower. Following the end of the episode in 1879, the U.S. economy would remain unstable, experiencing recessions for 114 of the 253 months until January 1901.
The deterioration of the climate that brought about the end of the medieval warm period (or medieval weather anomaly) caused an economic decline at the beginning of the 14th century (see Great Famine). However, demographic expansion continued until the arrival of the Black Death epidemic in 1347, when ca. 50% of the European population was killed by the plague. The economic effects of a labor shortage actually caused wages to rise, while agricultural yields were once again able to support a diminished population. By the beginning of the 15th century, the economic expansion associated with the Commercial Revolution in earlier centuries returned in full force, aided by improvements in navigation and cartography.
Under the reign of Queen Victoria federation of the six colonies occurred on 1 January 1901. Sydney, with a population of 481,000, then became the state capital of New South Wales. The Great Depression of the 1930s had a severe effect on Sydney's economy, as it did with most cities throughout the industrial world. For much of the 1930s up to one in three breadwinners was unemployed. Construction of the Sydney Harbour Bridge served to alleviate some of the effects of the economic downturn by employing 1,400 men between 1924 and 1932. The population continued to boom despite the Depression, having reached 1 million in 1925.
The legacy that Prajadhipok received from his elder brother were problems of the sort that had become chronic in the Sixth Reign. The most urgent of these was the economy: the finances of the state were in chaos, the budget heavily in deficit, and the royal accounts a nightmare of debts and questionable transactions. That the rest of the world was deep in the Great Depression following World War I did not help the situation either.
The market revolution further exacerbated sectional tensions in the United States. As King Cotton became the primary crop in the South, the need for increase in labor arose; thus, the South increased its use of slaves in producing crops. The North and European countries banned slavery in their countries/regions, and attempted to push the South to abolish slavery as well. The slave trade ended, but slavery did not end. As the textile industry in the North drastically increased, changing women and children's roles and further revolutionizing family structure, the demand for raw products such as cotton increased, meaning an increase in the South's demand for more labor. Ironically, this Northern demand for more cotton for the textile industry increased the Southern demand for slavery, making it harder for the North to end slavery in the South. This increase of labor and industry brought the United States into the world picture for economy and commerce, planting the seed for the United States to increase in wealth and power majority of the time.
As the Great Depression ended in the United States, world affairs worsened and spun the globe toward World War II. After almost 26 years at the helm of the San Antonio Brewing Association, Emma Koehler decided it was time to relinquish the official title. Her “retirement” closed an amazing chapter in the brewery's history. While it may not seem much these days, Emma's successful management role at Pearl was a breakthrough for its day. At a time when women's suffrage was still in its infancy and women did not yet have the right to vote, Emma Koehler led Texas’ largest brewery and one of the larger breweries in the nation.
Those who stayed behind and tended to their farmlands suffered the consequences of the widespread crop failures brought about as a result of long periods of drought and diseases such as the cholera epidemic and the potato fungus which caused the Great Irish Famine of 1840. Mass starvation was widespread in Europe. Specifically, in Ireland, the Irish Potato Famine killed over one million people and created nearly two million refugees. These refugees went to Great Britain, the United States, Australia, Canada, New Zealand, and, of course, the Caribbean. One of the islands that many Irish families emigrated in large numbers to throughout this period continued to be Irish-friendly Puerto Rico. Moreover, being a Spanish colony, the island had a primarily Roman Catholic population which appealed to the Irish immigrants, as opposed to the Protestant majorities of most of the colonies of the British Empire and the United States at the time that were openly hostile to Irish immigration.
With the end of Prohibition, so too came the end of the Alamo Foods Company. The company went back to their prior name: San Antonio Brewing Association (1933–1952). Most believed beer production would quickly return to the levels before the 1920 ban. However, Pearl's hard times were not over yet. In 1933, the nation was still deep in the grips of the Great Depression. Although most of the public would have loved to enjoy a Pearl, the financial situation of most made buying beer an unaffordable luxury. Through her skillful management, Emma Koehler kept the brewery afloat through the Depression, selling beer to those who could afford it and continuing many of the business ventures that had carried the brewery through Prohibition.
After the end of the Civil War in 1865, the U.S. government auctioned off the hundreds of ships it had requisitioned during the war at firesale prices, depressing the market and leaving American shipyards with no work. The result was that most American shipyards, along with marine engine specialists, failed. Not only the Westervelt shipyard, but the whole shipbuilding industry in New York was badly affected by the slump, being practically wiped out in the ensuing years. As the demise of shipbuilding after the war afforded him little opportunity to recover from his losses, the firm was dissolved in 1868, with no large surplus of assets. By this time Westervelt had constructed 247 ships with his partners, more than any other American shipbuilder in his day.
Causes for the decline and ultimate abandonment of the site around 1450 have been suggested as due to a decline in trade compared to sites further north, the exhaustion of the gold mines, political instability and famine and water shortages induced by climatic change. The Mutapa state arose in the fifteenth century from the northward expansion of the Great Zimbabwe tradition, having been founded by Nyatsimba Mutota from Great Zimbabwe after he was sent to find new sources of salt in the north; (this supports the belief that Great Zimbabwe's decline was due to a shortage of resources). Great Zimbabwe also predates the Khami and Nyanga cultures.
RCA and its partners soon faced an economic crisis, as the costs of providing programming threatened to exceed the funds available from equipment profits. The problem was resolved in 1926 when AT&T unexpectedly decided to exit the radio broadcasting field. RCA purchased, for $1,000,000, AT&Ts two radio stations, WEAF and WCAP in Washington, D.C., as well as its network operations. These assets formed the basis for the creation of the National Broadcasting Company (NBC), with ownership divided between RCA (50%), General Electric (30%), and Westinghouse (20%) until 1930, when RCA assumed 100% ownership. This purchase also included the right to begin commercial operations. NBC formed two radio networks that eventually expanded nationwide: the NBC-Red Network, with flagship station WEAF, and NBC-Blue, centered on WJZ. Although NBC was originally promoted as expecting to just break even economically, it soon became extremely profitable, which would be an important factor in helping RCA survive the economic pressures of the Great Depression that began in late 1929.
The first, in 1909, was known as "the Uprising of 20,000" and lasted for fourteen weeks. It was largely spontaneous, sparked by a short walkout of workers of the Triangle Shirtwaist Factory, involving only about 20% of the workforce. That, however, only prompted the rest of the workers to seek help from the union. The firm locked out its employees when it learned what was happening.
The Turkish currency and debt crisis of 2018 () was a financial and economic crisis in Turkey with international repercussions due to financial contagion. It is characterised by the Turkish lira (TRY) plunging in value, high inflation, rising borrowing costs, and correspondingly rising loan defaults. The crisis was caused by the Turkish economy's excessive current account deficit and foreign-currency debt, in combination with President Recep Tayyip Erdoğan's increasing authoritarianism and his unorthodox ideas about interest rate policy. Some analysts also stress the leveraging effects of the geopolitical frictions with the United States and recently enforced tariffs by Trump administration on some Turkish products such as steel and aluminum.
The majority of the deaths occurred among the lower classes, with the poorest third of the population gaining all their nutrition from potatoes alone, the crop which the blight affected. Therefore, when the potatoes blight occurred these people were left with practically no means of sustenance.
The Industrial Revolution started in Britain, with manual labour and horse-drawn vehicles being replaced by machine-based manufacturing and transportation aided by railways and steam power. This led to dramatic increases in the productive capabilities of Britain, and the need of new markets to sell the surplus of coal, steel and clothes. The Napoleonic Wars, where Britain was at war with France, made this a difficult task, after Napoleon countered the British naval blockade with the Continental System, not allowing Britain to trade with any other European country. Thus, England needed to be able to trade with the Spanish colonies, but could not do so because they were restricted to trade only with their own metropoli. For this end they tried to conquer key cities during the British invasions, and after it to promote their emancipation. The Industrial Revolution also gave room to authors who proposed a liberal economy, like Adam Smith. François Quesnay compared the worldwide economy with a living organism, stating that economics worked beyond political power and should not be affected by it.
Roy De Forest was born in North Platte, Nebraska to migrant farm workers during the Great Depression. De Forest's family lost their farm in Nebraska due to the harsh economic conditions during the Great Depression and were forced to move to Yakima, Washington. In Yakima, the De Forests bought a new farm, where they harvested pears and plums. De Forest described the socioeconomic status of his family as "not well off." Farm life had an important impact on De Forest's art. In his early art, De Forest experimented with landscape, which was inspired by the open land of his farm. Later in his career, De Forest began painting animals and other fantasy creatures in his art, which was inspired by growing up around farm animals.
The Great Famine (, ), or the Great Hunger, was a period in Ireland between 1845 and 1849 of mass starvation, disease, and emigration. With the most severely affected areas in the west and south of Ireland, where the Irish language was primarily spoken, the period was contemporaneously known as , loosely translated as the "hard times" (or literally, "The Bad Life"). The worst year of the period, that of "Black 47", is known as . During the famine, about one million people died and a million more emigrated from Ireland, causing the island's population to fall by between 20% and 25%.
Working at Hood Rubber in the 1920s as a researcher, Tillotson lost his job as a result of the Great Depression. Out of desperation and boredom, Tillotson discovered a way to make latex balloons economically. He founded the Tillotson Rubber Company in 1931 to produce them. His first product was hand-painted balloons in the shape of a cat's head, but he soon branched out into other offerings. In 1931, despite the Depression, Tillotson Rubber made USD $85,000 in sales (equivalent to $1.2 million in 2009).
Peel had good timing getting into the ergot business, because supplies in the United States had been subject to disruption. Russia was the world's principal exporter of ergot until the Russian Revolution in 1917. Spain then became the top producer of ergot, but supplies were then disrupted with the Spanish Civil War in 1936. In an effort to ensure his supply of raw materials, Peel began a campaign to educate farmers on the importance of ergot. Eli Lilly and Company, one of Peel's major customers, also assisted in this effort by providing publicity. Universal Laboratories began receiving considerable amounts of ergotic rye, which was stored in a grain elevator in downtown Dassel. The company supplied the vast majority of domestically produced ergot in the United States during World War II. In 1940, they produced , while in 1941, production was .
In 1863 "Great Eastern" made three voyages to New York, with 2,700 passengers being carried out and 970 back to Britain along with a large tonnage of cargo. One of her paddle wheels was damaged on the last outward trip and she completed it using her screw, while on the return journey she ran down and damaged "Jane", a small sailing ship. The company lost nearly £20,000 on the voyages due to a price war between the Cunard and Inman shipping lines, and ended up with debts of more than £142,000, which forced them to lay up "Great Eastern".
There is an ongoing debate between historians as to what extent President Calvin Coolidge's laissez-faire hands-off attitude has contributed to the Great Depression. Despite a growing rate of bank failures he did not heed voices that predicted the lack of banking regulation as potentially dangerous. He did not listen to members of Congress warning that stock speculation had gone too far and he ignored criticisms that workers did not participate sufficiently in the prosperity of the Roaring Twenties.
In the new classical macroeconomics view of the Great Depression large negative shocks caused the 1929–33 downturn – including monetary shocks, productivity shocks, and banking shocks – but those developments become positive after 1933 due to monetary and banking reform policies. According to the model Cole-Ohanian impose, the main culprits for the prolonged depression were labor frictions and productivity/efficiency frictions (perhaps, to a lesser extent). Financial frictions are unlikely to have caused the prolonged slump.
The Shadow banking system grew to exceed the size of the depository system, but was not subject to the same requirements and protections. Nobel laureate Paul Krugman described the run on the shadow banking system as the "core of what happened" to cause the crisis. "As the shadow banking system expanded to rival or even surpass conventional banking in importance, politicians and government officials should have realized that they were re-creating the kind of financial vulnerability that made the Great Depression possible – and they should have responded by extending regulations and the financial safety net to cover these new institutions. Influential figures should have proclaimed a simple rule: anything that does what a bank does, anything that has to be rescued in crises the way banks are, should be regulated like a bank." He referred to this lack of controls as "malign neglect."
The Austrian School asserted that the Great Depression was the result of a credit bust. Alan Greenspan wrote that the bank failures of the 1930s were sparked by Great Britain dropping the gold standard in 1931. This act "tore asunder" any remaining confidence in the banking system. Financial historian Niall Ferguson wrote that what made the Great Depression truly 'great' was the European banking crisis of 1931. According to Fed Chairman Marriner Eccles, the root cause was the concentration of wealth resulting in a stagnating or decreasing standard of living for the poor and middle class. These classes went into debt, producing the credit explosion of the 1920s. Eventually the debt load grew too heavy, resulting in the massive defaults and financial panics of the 1930s.