A few days ago
copperboom16

Great Depression Questions?

Were any price control measures put into play during the great depression?

What role did supply and demand play with the great depression?

Top 1 Answers
A few days ago
Aaron M

Favorite Answer

One of the major mistakes the US Govt. made during the depression is to put a massive embargo on goods coming into the US, or simply put, the would charge a pretty hefty fee for any goods arriving at the US Ports. This was done in an attempt to raise import revenues and help the country ease out of the recession.

This ended up effected 2 key aspects of US economy. The measure backfired and forced cash strapped US merchants to import less to avoid the fees being passed onto them by the coutries shipping goods to us, and in turn the supply of goods in the country shrunk to a very low level, while demand increased. In turn, prices increased, inflation increased and the great depression got even worse.

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