The Great Depression has examples of many economic principles. Many people consider the original cause of the Great Depression to be World War 1. Before WWI Germany accounted for about sixty percent of the exports and manufactured goods throughout the world. After the war Germany turned in to a very depressed country. Germany not producing as many products and not being strong economically hurt the rest of the world because most other countries relied on Germany one way or another and had to find new means of receiving the merchandise that Germany had provided for them. The main cause for the Great Depression was the stock market crash of 1929. In the Early twenties, the economy was running smooth and the country seemed to going in the right direction. Between 1923 and early 1929 primarily everything increased, the employment rate went up. The unemployment rate was about six percent at the beginning of the Great Depression, by the low point in the crash the unemployment rate increased to approximately forty percent. The unemployment rate of farmers did not increase during the great depre
ssion, infact the employment rate actually increased along with Japan's employment rate (both had a six percent increase during the crash). The American agriculture and the Japanese economy were the only two areas in the world to succeed during the Great Depression. Primarily, every other major country suffered from our Great Depression with depressions of their own. With all of the theories out about the Great Depression, still no one knows why they were these two increased in employment and economic growth. In the early 1920's the savings rate was only four percent, and there was no sign of a change before the Great Depression began. This casts out any thought of the Keynesian theory that the more one saves, the more it hurts the economy. That theory is true, but it just does not pertain to this particular incident. The stock market crash of 1929 began in October of 1929. At this time America's GNP was at $104 billion and by the low point of the crash, in 1933, it was at $56 billion. This was a fifty-three percent decrease; this is the largest percentage decrease ever. Part of the caus
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