The Great Depression By John Kenneth Galbraith - 829 Words

Introduction The Great Depression, as an unprecedented time of economic collapse and social disarray, cast a dark shadow over the U.S. and affected countries worldwide. The causes of it have always been a fascinating topic for historians and economists. There has been much debate, and no agreement has been reached. In the mid-20th century, John Kenneth Galbraith published one of his bestsellers, the Great Crash, 1929. In less than 200 pages, the book vividly recounts the history of the Wall Street Crash of 1929, covering the lead-up, actual occurrence, and aftermath. Professor Galbraith, with his witty prose, keen insights, and crisp narration, argues that the blind optimism and excessive speculation kept up the market mania and eventually led to the crash. The stock market crash certainly contributed to the Great Depression, but Galbraith also assigns significant roles to other weaknesses in the economy. Summary of the book The beginning chapter sets the tone: the â€Å"Roaring Twenties† for the U.S. was a time of high and rising production and employment. Most Americans, including President Coolidge, anticipated the future with â€Å"boundless hope and optimism† (14). Such a promising vision is paired with the â€Å"desire to get rich quickly with a minimum of physical effort† (3). The rise and fall of Florida real estate perfectly manifested the speculation: more and more people bought and sold property with the rising profits, but the bubble soon burst in 1925 as both the demand forShow MoreRelatedEssay John Kenneth Galbraith1144 Words   |  5 PagesJohn Kenneth Galbraith, born on October 15, 1908, was one of American’s more influential economists, longtime Harvard professor, and a U.S. ambassador to India, an author, an economist, and â€Å"used caustic wit and an iconoclastic temperament to help set the foundation of modern economic thinking† (http://www.csmonit or.com). He, along with another famous economist, and longtime rival, Milton Friedman, believed that everyone has an idea, and that every idea matters, and were masters of the debates andRead MoreEssay on The Great Crash 1929 Book Review1602 Words   |  7 Pagesthe rise can set off a buying spree, while a tip that one may be on decline might entice people to sell. The fact that no one really knows what is going to happen one way or the other is inconsequential. John Kenneth Galbraith uses the concept of speculation as a major theme in his book The Great Crash 1929. Galbraith’s portrayal of the market before the crash focuses largely on massive speculation of overvalued stocks which were inevitably going to topple and take the wealth of the shareholders downRead MoreEssay about The Great Depression in America1156 Words   |  5 Pages but the Crash of 1929 made this a reality. The crash of 1929 established the beginning of Americas most memorible era; the great depression. According to the London Penny Press, following the week of Black Thursday, one could go to New York and see speculators hurling themselves from windows because they had lost everything in the crash. (The Great Crash 1929-Galbraith) Many people had everything they could ever dream of before the crash occured, but after the crash they found themselves poorRead MoreThe Stock Crash Essay754 Words   |  4 Pageswere paying off handsomely, the little ones too. However, as much as analysis tried to tell the people that this period of great wealth would last, no one could imagine what would come of the United States economy in the next decade. The reasons for this catastrophic event in American 20th century history are numerous, and in his book, The Great Crash, John Kenneth Galbraith covers the period and events which lead up to the downward spiral in the fall of 1929 and the people behind t he scenes on WallRead MoreThe Economics Of The Great Depression1638 Words   |  7 PagesEconomics of the Great Depression Tyler Brooks 4/19/2015 The great Depression was the worst and longest economic decline experienced by the industrialized western world. Economic cycles are continuous loops of periods of business expansion followed by business contraction. This is the way economics has always been in the industrialized world and extended periods of contraction was something people had seen before. However, the Great Depression was something peopleRead MoreThe Great Depression By Milton Freidman And Paul Samuelson1267 Words   |  6 PagesIntroduction: Background Information The Great Depression is defined as an era of hardship and was the â€Å"economic downturn in the history of the Western industrialized world† . The United States was predominantly affected by the Great Depression, soon after stock market crash of October 1929. This fiscal crisis sent Wall Street, the center of economics in New York into a state of prolonged recession that affected foreign economies. In the next few years in America, unemployment increased immenselyRead MoreThe Role of Government in Economy1216 Words   |  5 Pagesessay discusses the role of government by analyzing both thought of Keynes and Friedman and then prove the effectiveness of Friedman’s theory with historical examples. Firstly, the Great Depression of the 1930s has helped prove the importance of government’s intervention on the economy in the past. The Great Depression started with a decrease in stock prices in America and then quickly spread to most parts of the world (McElvaine, 1993, p 59). There was a tremendous decrease on the demand and globalRead MoreHow Far Were the Economic Policies of the Republican Government Mainly Responsible for the Collapse of 1929-33?2370 Words   |  10 Pagesin a laissez-faire style of government and rugged individualism which meant that they didnt interfere and thought everyone could succeed in life without their intervention. Many believe that this lack of interference was the main cause of the great depression, also known as the Wall Street Crash. As a party that favoured this style of government they favoured low taxes on the rich and minimal regulation. This was ideal for the rich businessmen; they were left to make their fortunes without any interferenceRead MoreEssay on The Glory and The Dream9497 Words   |  38 Pagesflourished during the Great Depression? Why? a. Radio production businesses and radio stations flourished because it was cheap entertainment, in which people could listen to whenever they were. Advertising flourished too because they would act as the Depression was nonexistent and have huge boards with items â€Å"for sale† which people, although poor, would still buy. 2. How did Samuel Insull exemplify the uneven distribution of wealth that in part led to the Great Depression? a. Insull’s utilityRead MoreMahfuz7742 Words   |  31 Pagesdelivered an address titled â€Å"The Engineer as an Economist.† Towne argued that there were good engineers and good businessmen, but seldom were they one and the same. He went on to assert that â€Å"the management of works has become a matter of such great and far-reaching importance as perhaps to justify its classification also as one of the modern arts.† Towne’s speech heralded a new reality in at least three respects. Call the first consciousness raising: Management was to be viewed as a set of