The exact causes of the business cycle is not an exact science, and often causes problems in economics. A depression is said to be caused when wages or prices fall to reach their market clearing price, and when the governments intervene by changing interest rates. In this overview of the Great Depression I will discuss different causes and cures used.

Many feel that the major cause of the Great Depression was the Federal Reserve Board. The Fed was originally created in 1913 to help prevent panics, like the one that occurred in 1907. The big banks wanted government security and protection and in turn withstood government regulations. The American people were investing so much money at that time because of the low interest rates. Because of this the money supply in America rose about sixty percent. Americans over extended themselves to take advantage of the soaring stock market. In 1929 the Fed realized that the current policy cou

FDR did a lot of promising of a balanced budget, and no government intervention, but once in office he imposed a lot of programs, such as minimum wage laws, which limited price flexibility. At first, a lot of what FDR implemented seemed to work, but after 1937 the depression went down hill again. FDR also chose to shy away from the traditional laissez-fair attitude and introduced the New Deal. The first objective was to alleviate the suffering of the huge number of unemployed people. They helped with placing people in temporary construction jobs to help both those out of work and businesses get back on their feet. The FDIC was established to offer insurance for bank deposits in member banks. The SEC was formed to prevent investors from fraudulent stock market practices. FDR also helped the forgotten homeowner by refinancing mortgages and guaranteeing bank loans. The New Deal also revamped social security by providing old age and widow benefits, unemployment compensation, and !

A

Some common words found in the essay are:
Tariff Act, Board Fed, Business Cycle, Depression America, Hoover FDR, stock market, cycle exact, business cycle exact, business cycle, hoarding money, money circulation, money supply, fdr chose, depression america, do-nothing president,
Approximate Word count = 665
Approximate Pages = 3 (250 words per page double spaced)