Arguements Over the Causes of the Great Depression

New Dealers argued that the Depression was a crisis of â€Å"under-consumption.† They contend that low wages and high prices due to the uneven distribution of wealth had made the idea of purchasing products in this industrial economy out of the question; and that a â€Å"lack of demand had led to the economic collapse (Glenco),† especially after the poor were hammered by the effects of the stock market crash. Furthermore, placing sole responsibility of the depression on the unbalanced distribution of wealth is unreliable in the sense that a domestic solution was unavoidable in the minds of New Dealers, whom acquired a predisposition to place limits on corporate leaders, which distracted them from recognizing the full effect of other obstacles during the Depression. With the decline in purchasing power already intact, the drastic contraction in currency added insult to injury. This monetary interpretation concluded that the Great Depression was a byproduct of â€Å"mistaken decisions by the Federal Reserve Board,† which â€Å"raised interest rates when it should have lowered them (Glenco).† These measures insured that a rather generic recession would climax into the Great Depression known today. However, the validity of this argument can be questioned because of Friedman’s disposition to see things through a monetary lens: allowing Freidman to advocate his position â€Å"that sound monetary policy is the best way to solve economic problems (Glenco),† and ignore the drop in consumer spending andShow MoreRelatedEffects Of Soft Drugs On Society, And On Adolescent Youth1605 Words   |  7 Pagesillegal, and it is because they are dangerous to our health, and the health of others. It is known and proven that drugs can do damage to our physical and mental health. For example, it can weaken the immune system, lung capacity and memory. It can cause depression and and changes of personality. Drugs are also very addictive and to stop the abuse is very hard, because the withdrawal symptoms are vbery strong and painful. There is also the risk of overdose which can lead to serious harm or even death.