The great depression essay

The circulation of cash declined drastically which meant that spending by consumers also dropped significantly. Investments went into a record low which also forced industries to take action to mitigate against the adverse effects of the depression. Millions of workers were retrenched because the production and output was reduced substantially, therefore reducing the quantities of goods produced. Many companies adopted the downsizing strategy as a way of dealing with the great depression. More than half the banks in the American banking system also collapsed because investments and deposits were near zero. Improvement of the New York Stock Exchange would imply the positive change of things. Nevertheless, this did not happen until 1940. Reference Eichengreen, B. , & Temin, P. The gold standard and the great depression.