Show-Me Institute Policy Researcher Michael Rathbone explains the causes of the Great Depression and the effects of government policies during that crisis in this presentation titled “Why was the Depression so Great?”
This presentation covers three main points: what caused the Great Depression; what caused it to go on for so long; and how did we finally get out of it.
Many believe that the cause was the stock market crash of 1929, which caused the Great Depression and a laissez-faire approach toward the crisis, ultimately making things worse. However, that is incorrect. In fact, while the crash started the crisis, it was a series of well-intentioned but poorly thought-out government actions that turned a sharp recession into a depression.
This presentation details how, in fact, President Roosevelt built upon the policies of President Hoover to combat the Depression. However, these policies did not get the country out of the Depression. In reality, it took a combination of events, including World War II, to actually end the Depression and restore strong economic growth. After watching this presentation, you will have a better understanding of that era in American history and the effects of public policy on the economy.
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