1929 is a year that most of our grandparents or great-grandparents remember, as it was a year when one of the most significant events occurred in the history of the United States and affected other nations globally. Preceding this great event in our history was a time where businesses were laissez – faire, markets were independent of government interference, monopolies were free and taxes were severed.
Inequality of income and wealth increased, government tariffs and regulations pierced through America's foreign market and hardly any modification by the Federal Reserve was made toward the money supply.
Another mistake was the preservation of the gold value of the dollar by the feds by an increase of interest rates.
This is discussed in detail below (Amadeo, 2010, p. Prior to 1929, the Franc and other currencies ware undervalued after adopting floating rates for some time.
At the end of the second decade of the twentieth century, countries were hi t by a staggering depression in their economies.
Essay On The Great Depression