Abstract:
A comprehensive analysis of the Great Depression of 1930: Household debt impact and recovery of US economy
Introduction
Chapter 1: Anatomy of crises, The Emergence of the World Economic Crisis of 1930s and its General Effects on the World
1.1 Definitions, causes and Dimensions of Economic Crisis
1.2 The Road to World Economic Depression
1.2.1 The Economic Impact of the Great War and The Dissolution of Empires
1.2.2 Gold Standard Collapse and Global Financial Imbalances
1.2.3 The U.S. Market Bubble and the Stock Market Crash of 1929
1.2.4 Unstable Global Financial System and the Improper Economic Policies
1.3 Big crisis in New York stock market
1.4 Reflections of the Great Depression to America and Europe
Chapter 2. Household debt as a cause of Great depression
2.1 Household Debt and the Economy
2.2 Damages to household balance sheets
2.3 Factors Underlying the Buildup in Household Debt
2.4 Feedback effect on households’ incomes
Chapter 3. Economic Recovery Evidence from the U.S.
3.1 Dealing with Household Debt
3.2 Factors Underlying the Buildup in Household Debt
3.3 Lessons from great depression
Conclusion
Reference list
Abstract
The New York Stock Exchange had a significant decrease in stock value that started in 1929, upsetting the financial and capital markets. Major bankruptcy in the financial sector occurred quickly. The manufacturing and agricultural sectors experienced significant price decreases. In social life, poverty and unemployment first appeared. This major problem first erupted in the United States before spreading to Europe and the rest of the world. The 1929 World Economic Depression was named after this occurrence in history. Production fell globally as the World Economic Depression of 1929 started. 25 percent less trade was conducted internationally. Economic spheres of influence have reduced. Numerous firms, industrial facilities, and banks failed. The nations of the world began searching for remedies to end the downturn. The aim of this study is to determine the role of household debt factor in great depression through the US economy. The qualitative research method is employed in order to answer following research questions: “What was the main cause of emergence of great depression in United States?”, “What was the role of household debt?, “What was done to recover US economy back?
