The Federal Reserve and the Depression
The Federal Reserve, established in 1913, was the leading cause of the Great Depression. They induced the Depression in a number of ways that is directly correlated to the collapse of the US economy. They played a key role in the stock market crash in 1929 and the economic failure that followed with policies that were horrid and also failed to address the new concept of the Wealth Effect and unequivocal distribution of wealth. They also exposed their interests to highly tumultuous parts of the world that carried a great deal of risk, and after the Depression, failed to enact or enforce any laws to help prevent such a disaster from occurring again. The collapse of the stock market is widely thought to be the cause of the Great Depression. The Fed’s policies during the stock market rise and after the crash were appalling and make many of today’s economists wonder how they could be so wrong. From 1922 through July of 1929, the Dow Jones Industrial Average rose an astonishing 575% and created hundreds of billions of dollars of wealth worldwide. However, Federal Reserve Chairman Adolph Miller was extremely late to the game and did not even think about the possible implications that a stock market slump may have on the economy
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Some common words found in the essay are:
Federal Reserve, Margin Requirement, FDRs Deal, Discount Rate, Fed Funds, Adam Smith, Mariner Eccles, Wealth Effect, Fed Fed, Chairman Millers, stock market, federal reserve, wealth effect, stock market crash, market crash, raised rates, fed decided, margin requirement, stock prices, market rise, people buying, stock market rise, chairman mariner eccles, depression federal reserve, treasury act 1921,
Approximate Word count = 3176
Approximate Pages = 13 (250 words per page double spaced)
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