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- เผยแพร่เมื่อ 12 มิ.ย. 2024
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Mr. Beat examines what really caused the Great Depression. Odds are, your interpretation of the true causes of the Great Depression are strongly influenced by your already strongly held beliefs.
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#greatdepression #apush #ushistory
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Sources referenced:
Econclips: The Great Depression | What Caused It?
• 📽 The Great Depression...
Crash Course: The Great Depression: Crash Course US History #33
• The Great Depression: ...
Reading Through History: History Brief: The Causes of the Great Depression
• History Brief: The Cau...
Additional sources used/further reading:
www.britannica.com/story/caus...
www.researchgate.net/publicat...
www.cato.org/sites/cato.org/f...
fee.org/articles/what-caused-...
Eichengreen, Barry. "Hall of Mirrors: The Great Depression, the Great Recession, and the Uses-and Misuses of History." Oxford: Oxford University Press, 2015.
www.socialstudies.org/system/...
www.stlouisfed.org/~/media/fi...
www.stlouisfed.org/publicatio...
www.senate.gov/artandhistory/...
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After scouring as many different sources as possible over the years, I have compiled one giant list of 18 possible causes of the Great Depression, and here they are:
Lack of economic diversity
Unequal wealth distribution
Unstable banking system
Bank panics
Too much credit in 1920s
Not enough credit in 1930s
Money supply was too high in 1920s
Money supply was too low in the 1930s
Federal Reserve raising interest rates at wrong time
The gold standard holding back economy
Decreased international lending
Increased tariffs (Smoot-Hawley Tariff)
Lack of consumer confidence
Trying to balance the budget
Asset bubbles
Drought conditions
Overproduction of goods
Government intervention with labor
While all of those causes are correct to a certain degree, some are less credible than others. Plus, some of these can be combined and are definitely related. And I do get that this list might be overwhelming. And so I’ve come up with a TOP FIVE LIST.
5. An unstable banking system
4. Asset bubbles
3. Increasing tariffs and other taxes when people were struggling
2. Too much money supply in the 1920s, too little in the 1930s
1. Too much credit in the 1920s and too little credit in the 1930s
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Do you agree with my list? What do YOU think was the biggest cause of the Great Depression?
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This has been Cleveland for the past 50-60 years
My Great Grandfather was a banker during the Depression his bank failed and then he got hired by the IRS
I think it’s just Capitalism :/
Herbert Hoover is unappreciated
Mr Beat: Can you do an episode on fiat money and the federal reserve?
'what's depressing? I'm Mister Beat' don't put yourself down like that
Well I could have said "What's Mr. Beat? I'm depressing."
@@iammrbeat I'll do you one better. Why is Mr. Beat
@@MrArtVein I’ll do one better. How is mr breast
@@justicecaparros No
@@justicecaparros mr breast give me money
“A banker is a fellow who lends you his umbrella when the sun is shining, but wants it back the minute it begins to rain.”
― Mark Twain
That's humans in general.
Banking is literally just a legal ponzi scheme, except the bank can legally lend far more than they have
I pretty much always heart a Twain quote.
That would be insurance companies
@@joshuaidugboe214 insurance companies don't go bust and have to get bailed out by the government every decade(the AIG was bailed out in 2008, but the banks go under like clockwork)
Whenever I asked my grandparents or anyone else their age what the Great Depression was like I always got the same answer. "We were so poor we didn't even notice."
That's actually a really revealing answer.
@Yummy Spaghetti Noodles Naw. Important people keep those things running because they need them. With factories and shit closed down, they don't need poor people, so they just don't notice or care. And since those people are poor, those things don't go towards the poor people because they're not important. Basically, all of the important resources get hoarded up high because they don't need a labor class for the most part. And since the labor class is so poor, anything the wealthier absolutely need are dirt cheap.
I grew up dirt poor but really didn’t notice how bad it was because most of the kids I went to school with were dirt poor as well
Isn't there an old joke about a recession is when your friend has lost their job and a depression is when you lose your job.
Ronald Reagan said that during the 1980 campaign, adding, "A recovery is when Carter loses his!"
Depression just means really bad recession (essentially)
"It's a recession when your neighbor loses his job; it's a depression when you lose yours." Harry S. Truman
@@pascalausensi9592 Thanks, I knew it was something like that.
That's from then former Cali Gov. Ronald Reagan campaigning against then President Jimmy Carter.
Mr. Beat to both the Austrian and Keynes schools of thought: “both of you are smart boys and need to get along, okay??”
lol that sums it up
I mean the austrian school is known for how inaccurate it is
Keynesian gang
@@HickoryJ neoclassicals agree with us as well lol
@@destroctiveblade843 righht, and the Keynesians are so correct about everything?
Economics: The only science where you can be dead wrong, and then right and then wrong again and so on and so forth.
Haven't studied quantum physics?
@@eldorados_lost_searcher quantum physics still relies on occam's razer while economics changes from culture to culture.
The failed science
The First Law of Economics: For every economist, there exists an equal and opposite economist.
The Second Law of Economics: They're both wrong.
@@pascalausensi9592 Damn.
Basically, stonks went down, which caused more stonks to go down
Buy stonks today
"What's depressing?" After the events of this week, I really appreciate that opening line.
@ZurkBK Who doesn't like Wilson?
@ZurkBK My thoughts on him are mixed.
@ZurkBK Jackson was the founder of our modern democracy, and those who hated Jackson loved his democracy. Wilson was just a terrible person, a "lost causer" who believed in eugenics and brought us into ww1 after running on not doing it due to heavily one sided "neutrality" used to bait the Germans. Also, for fun, his textbooks don't cite sources and even then barely cited first hand sources.
ha, well I made the video before January 6th
Andrew Jackson committed genocide...
When class gets out early and a mr beat video is out!
Best day ever!
Awesome
Helmer #JustMonika
@@mingfanzhang4600 uhm. Who are you?
@@iammrbeat you forgot a video Mr Betts Class video about the Great Depression done to a song from Grease. Though his list is fairly close to yours, it does include a bit about over production as a result of WWI, and after that, production slowed especially for farms.
My maternal great grandparents moved the family from OK to CA in the 20s because of a small bank run made BH Lewis (Benjamin Harrison) feel worse was yet to come. He was from a long line of farmers, so he went on to California and got a job working at th he railroad and set up a sharecropping deal with a local rancher for a small cottage and bit of land to grow their own garden and have a few farm animals. They moved to California in early 1925.
I swear I learn more from this channel than I ever did in school
Same!
Then you weren't paying attention in class
Aw that means a lot!
@@nope929 or perhaps the content was so dry and boring with an unenthusiastic teacher that just didn't engage the student, no bad student only bad teacher
This dear internet friend is what is called a good teacher. A good teacher can make any topic interesting
Ah yes, *T H E B I G S A D*
The Gargantuan Lack of Serotonin
And the post war boom was *THE BIG GLAD*
Yes for better names.
@@iammrbeat
Do you appreciate guacamole?
@@PremierCCGuyMMXVI I am a guacamole not eater.
1820s: Era of Good Feelings
1920s: Roaring 20s
Start of 2020s: Deadly Pandemic and Political Instability
1920s began with a deadly influenza pandemic tho... and race rioting wasn’t better with Wilson in charge.
@@Paranoid_Found i can hear the cynical historians screaming his name
@@USSAnimeNCC-
WWWWIIILLLSSSOOONN
The 1920s also started with a deadly pandemic and political instability, things will get better.
Our political instability has actually been worse, look at Nixon and Kennedy or Nixon after he won. Nixon was a polarizing figure, probably because of his large government policies and inability to take us out of the vietnam war quickly.
Mr Beat and the Great Depression is a perfect combination
Thanks?
What do you mean?
Who knew the great deprssion will lead to this guys squirle mode being exposed
Wait a minute…
This is an excellent video, well done! I would also like to mention that the 1930s Dust Bowl had a major impact by killing the farming and agriculture across the Southern region. This definitely destroyed the Southern economy which helped contribute to the overall collapse of the entire nation’s economic infrastructure.
Yes the Dust Bowl was horrible, and led to large numbers of people moving to California
My paternal great grandparents moved along with my grandmother to California during the Dust Bowl though my maternal great grandparents moved during the 20s from OK to CA. My mom's mom was a toddler and the last one born in OK before they moved, while my dad's mom was in high school when her family moved.
@@RachaelMarieNewport Wow that's fascinating, that's true American perseverance!
@@americanhistorygeek1926 Thanks sometimes I wonder if why I am such a major history buff is having so much family history on both sides at historical points in our country's growth as a nation. I have on both sides at least some ancestors that go back to at least the 1600s in MD, VA, and NC.
Farmers had a prosperous WWI and then a rougher 1920s, then the Depression hit. People never lost their sweet tooth, so it's effect was muted here.
That might come under point 14 -Drought conditions
If Hoover doesn’t respond back we know Mr. Beat was actually the winner in 32
Hoover did comment down below.
@@iammrbeat hoover: um
My top 5:
1. Smoot Hawley Tariff act: this law single handily ground global trade to a halt, once implemented everyone else got into the act by passing their own tariffs and soon enough you were paying 4-5x what an item costs to import it.
2. Easy access to credit, actually this can be linked to pretty much every recession in some way. Giving credit to people who can't afford it creates a cycle where the economy booms because people are buying stuff, then people can't afford to buy stuff because prices got too high, and then people start defaulting on loans because they can't afford them.
3. Too much faith in the Fed, back then people thought the Fed could get them out of anything so they made risky investments because they thought "well the Fed will just bail me out if this doesn't work" and of course when they didn't panic set in.
4. The Asset bubble you talked about
5. The disaster taking place in agriculture, the 20s was a good time for industry but it was a bad time for farmers. Due to producing tons of food to feed the soldiers of WWI it lead to a oversupply of food in the market which lead to food prices dropping which lead to farmers not making money and going bankrupt. Then you had the dust bowl in the 1930s that only made things worse.
I think a big part of our problem with this issue is our cultural obsession with the singular. We love it when a problem has one clear and decisive cause that can be remedied by one clear and decisive action. In reality, you're more likely to find five or six different causes and a host of potential solutions than just one, and people don't like it.
Well put! And side note... Futurama is one of the best shows ever.
@@iammrbeat Good news everyone! Mr. Beat likes my comment!
Lmao the intro
"What's depressing? Im Mr Beat"
the only man who can make learning history actually fun and humorous
Well my teacher from junior year definitely made it exciting
@@superrknight1858 I also had some cool teachers but come on, compared to mr beat. no one beats him
hi Mr. Beat! I love your videos, and i hope that you are doing well in this pandemic thanks!
I have spent a huge amount of my time researching politics trying to find anything remotely fair and impartial, and your channel seems to actually meet that. Thank you so much for what you do. It's weirdly relaxing to watch a political video and not have to spend a couple days mulling it over to try to properly separate wheat from chaff amongst the claims. Obviously, I'm still going to think and analyze and all that, but being able to more directly learn without trying to find truth behind a wall of bias makes my life far more enjoyable.
Hi @Mr. Beat,
Another great video! I've been following your content for the better half of a year now and I love your pragmatic and unbiased approach to history and politics. Please keep up the great work. Also, thank you very much for the Blinkist promotion in this video because this will save me a ton of time with reading.
Stay blessed and healthy!
Well done again Mr. Beat.
Hey Mr. Beat, just wanted to say that I got your book “The Ultimate American Presidential Election Book” for Christmas a few weeks ago and it is absolutely fantastic. I’ve been reading it and learned so much. I love all your videos and keep up the good work!
That is amazing. Thank you so much!
THANK YOU FOR THIS SIMPLIFIED view of the causes of the Depression! I'm having my students in my U.S. History class watch it, and not "the other " videos!!
Well put thanks keep up the good work
Thank you, Mr. Beat!
0:30
A recession is when your neighbor loses his job, a depression is when you lose yours.
A bit oversimplified, of course, but I always liked that saying.
Hey. I was 16 when Ferris Bueller’s Day Off Came Out. We didn’t have smart phones back then. Just Walkmans.
I owned a Walkman in middle school!
Wow I'm early hi Mr. Beat! Love you state Comparison vids!
Keep up the good work!
Here's my request:
Compare Arkansas and Louisiana
Now the REAL controversial topic is:
Did FDR help or worsen the Great Depression?
Sounds like a good follow up video.
I suppose FDR's handling of WWII helped the Great Depression
@@lupinthethird5784 How? I mean, I already heard many keynesian pro-WW2 arguments that claim that the military spending and draft boosted the economy, how spending taxmoney in weapons, ammunition, tanks, fighters and navy helped the civilian Economy (industries, farms, shops and etc)? Since it depends in the efficienct allocation of capital goods and labor, so, the labor used by the Military did not create any positive economic output (soldiers don't make goods, services or develop any New Tech). On the contrary, the war efforts spent and consumed scarce resources (capital, machinery, raw materials and labor) in the civil sector, only increasing the country's material scarcity.
For the sake of that Argument, the "best" thing that WW2 did was pushing New R&D projects.
By the way, I am not saying that USA should not join WW2, but It was not positive for the Economy, despite being a good action in world scale.
@@brunoacostasilva Well before the Americans really joined the fray the United States was a major exporter (especially to the Empire) which brought money into the US economy. That would have helped, no?
@@lupinthethird5784 The USA was oficially neutral until that happened, so, It was no the USA joining the war that helped the Economy, but the Allies importing war materials and supplies from USA due to war efforts in Europe.
that was really good thank you
Great video as always Mr. Beat!
Thanks Karl!
Hey Mr. Beat, I happen to be writing a large essay about Depression-related matters today, so you're in my bibliography now.
Gosh what an honor! And good luck to you with the essay.
@@iammrbeat Thank you. It's not much on top of all of the articles I've read, but hey, you came out with this just in time for me to make an essay.
You're basically saying monetary policy resulted in the Depression. It seems to me that for such a big social impact something larger was going on. I'm under the impression there was a large move of people from the countryside into the cities, perhaps as a result of the mechanization of agriculture. City economies could not handle the excess labor supply and thus depression. That may be wrong, but something much larger was going on than what you're describing and it was also a worldwide phenomenon, not just a U.S. one.
Great video, very informative!
This is good stuff, thank you!
Another reason why its " Great Depression " and not just a standard "depression " is because the US made up about 50% of the world economy at that time . Now that there are other countries like China that are going to eventually become the largest country , the risk of a depression maybe diversified
That’s not true at all. The US’ share of the global economy in 1940 was 20.7%. I couldn’t readily find a statistic for the 1920s or 30s so I think this is a fair one to go off of for the sake of the argument.
True
@@megahunterkiller I think you are seeing the data for purchasing power parity not nominal
idk much, but one documentary covering how some of the major western countries fared during the Great Depression mentioned how America was somehoe involved in their financial problems - either through loaning those countires money or having major percentages of business in their bigger banks. It seemed that America helped bring other countries down. When I say America, I mostly mean our financial 'experts' who gamble for a living with stocks, bonds, certificates, etc.
@@genkiferal7178 It was because of hiking interest rates. Same thing happened in latin america in end of 1980's , ASEAN in 1990's etc
okay so i'm in apush and this is the topic we're learning about in class this very minute and I just found it kinda funny that you uploaded this when you did lol
Geez, how are you already to the Great Depression?!?
I’m in college U.S. History from 1865 to present and we just got done with the Depression and WWII, though it is only a semester long class
The Corbett Report also has a unique perspective on this. Great video Mr. Beat!
Once again, fire video 🔥🔥
I consider myself a follower of the Austrian school, but I do appreciate what Keynes brought to the table.
One of the things Keynes pushed for was a balanced budget during the good times, this is something that America needs to follow if we’re going to follow the Keynesian model.
As another follower of the Austrian school, I truly believe the Keynes was a tool of the political class.
It is hard for me to believe Keynes was NOT aware of the dangers of a government created and influenced “independent” central banking institution charged with the responsibility to “control” the money/credit supply without ANY concern of potential government corruption/exploitation...
Only someone psychologically trapped in an academic/theoretical world OR someone COMPLICIT in advocating such a system SO OBVIOUSLY rife for exploitation, abuse and the accumulation of MASSIVE DEBT by politicians (who have EVERY incentive to do so in the name of “representing” their constituent districts, special interests and lobbyists with as many “goodies” as possible) would openly and honestly “claim” that such a system were plausible IF politicians “practiced” prudent and restrained taxing and spending policies with OTHER PEOPLES MONEY...
Perhaps the biggest problem with Keynes is the durability of his ideas. If you do not factor in human behavior, then your ideas are useless. Like parasites, governments only grow in size and backing down on government spending will cost politicians votes. They’re simply not going to cut back on the budget when we cycle into expansionary periods. Like John Doe mentioned, I believe his ideas to be a way for the elite to convince the average person that the theft of central banking is actually in our best interests. Krugman does the same thing now. I believe him to be a smart man, but he has completely sold his soul to profit from the general public’s poor understanding of economics.
Man, that's something. Funny how your voice changed from normal to high-pitched. Great.
I have too much fun messing with the pitch.
I appreciate you putting out this video cause I’ve been thinking about looking up what caused the Great Depression
*IT'S ALMOST LIKE I READ YOUR BRAIN*
I think that you are great, you put me in mind of my most interesting High School history teacher from 20 years ago.
Here’s what happened, the stocks were going down like normal and everyone was so scared that they started selling in mass numbers which effectively ruined the markets.
Again, more of a symptom than a cause
@@iammrbeat true
It's interesting how the People get seen as the bad guys instead of the victims. The same narrative was spun during the 2008 housing market crash. People were seen as taking out more than they could afford rather than the predatory lending practices telling people they COULD afford it. There's a great Documentary that came out this year at thecon.tv
@@GiffysChannel im not saying they were taking out too much, they just sold too much at one time. this wasnt the main reason but it was a factor
@@noahk258 🖖😎
We are literally going over this in history class rn.
Tell your teacher about the video! lol
Hey Mr Beat could you do a list of all 18 next? I'd love to see it
Wow you deserve waaay more subscribers
Oh thank you!
The depressing 20s. Both during 20th and 21st centuries.
Albert Boris #JustMonika
The Depression was in the 1930s not 1920s (2 months of the 1920s i guess)
I do believe the 20's were pretty depressing as well though. At least that's what I was taught in school
@@AlbertBoris so were all the decades before the 1920s then
@@MackeyDeeez 20's were worse. Spanish influenza for example. Same thing the century before but with the plague
The Great Panic of 1929? Oh. Actually first, neat. Hi!
Astrid Fornhoff #JustMonika
Hi Astrid!
You're one of the best history/political channels on TH-cam. You use evidence, common sense, and history to make informed judgements of people's character or an event. I love that so much. We need more people who view the political landscape like you do.
This is why I watch Mr. Beat
I remember how I had to hold a presentation on the Great Depression back in 11th grade and I really struggled to find any information on the cause. It's so great you put this up! This will definitely increase the quality of history education in a lot of schools!
Awesome. Thanks for the kind comment. :D
people just wanted a sequel to WW1 and they got really sad
You've figured it out.
Can you post a video about the causes of the great recession (2008 financial crisis) I would really appreciate it! Love the videos!
Great video man
Glad you enjoyed!
Hey, Mr. Beat! Can you please do a Supreme Court Briefs video on FCC v. Fox Television Stations? Pretty please?
I second that!
Right on
Idk why Mr. Beat. Every time you upload I’m eating a salad. 🤨
Thanks for preparing me for the Depression Stonkquel
Absolutely a great video .can you make other videos about hoover Roosevelt 'deal?
Man this video was sure "depressing". No, sorry
P.S. great vid mr.beat
No need to apologize. Thanks! :D
I’d really like to know if Calvin coolidge’s policies were a cause of the Great Depression? He’s one of my favorite presidents and I always though that because of his deregulation, he made the economy stronger and from most of what I read that seems to be true but I’d really like your opinion. Thanks
Well, if he had regulated tightly enough to prevent the depression, he would’ve started one. If Coolidge had been president and not Hoover during the depression, it wouldn’t have been the great depression.
He did a good job. Hoover messed up with tariffs and big government. Calvin did say that "for eight years that man has given me unsolicited advice... None of it good"
2:37, Those very old office chairs are pretty cool. Imagine having a pristine antique one of those, that would be awesome.
Another classic Beat vid, baby
Thanks Michael!
please do a video on the presidency of William Henry Harrison
Heck yeah
For a couple days I thought Pence was going to get sworn in and beat Harrison's record, but it seems like its not going to happen.
"Raising taxes ... is one of the worst things to do."
*remembers Trump's tax code will increase taxes this year unless a new tax code is passed*
"Heh, I'm in danger."
And even though it's from the Trump administration Biden will get blamed for it.
Didn't he bring tax cuts or am I misinformed?
Terrible meme, brah
I thought you were going to mention his tariffs.
@@iammrbeat What about raising taxes on the wealthy?
My boys on that TRT you’re the man!!
Love mr beat!!!
What's Mr. Beat I'm depressing
I was ready for this comment lol
@@iammrbeat Do you claim to be the chosen one, Mr. Beat?
Everyone got depressed. Duh
I didn't know what a recession was 😔...but I know now! Thank you
Happy to help!
This is fitting we just started learning about the Great Depression in my am history class.
Well dang that worked out.
What’s your tik tok account
Good video Teach, also there’s nothing wrong with having a bias as long as you’re honest about it and give the facts first....Why do you always try to sound unbiased? I know you like Kyle Kulinski so I assume you lean left at the very least if not you’re a secret progressive 😂
Your top 5 reasons make sense, but like Karl Marx says Capitalism always has recessions and depressions unless it’s regulated and that’s a fact. So maybe a future without capitalism would be a good thing. In the meantime the Scandinavian countries model is great for now
We'll see what happens with automation!
@@iammrbeat Yeah, automation can do everything for us eventually and we never work again 😂
Hey Mr. Beat, I want to thank you because I told my teacher about the election of 1912 and he said I am smart. If I never saw your presidential election of 1912 I would never know about. Love the video and keep up the great work! (:
Hey great video. But I was wondering you could make a supreme court brief video discussing the two different Justice Harlans. Grandfather and grandson, and how their views on the bench were a like and differed. I think it would be a really interesting comparison. Thanks!
When is the new 2020 Presidential Election: In American History
Spring or summer if I had to guess, it's very complicated and touchy and not really done happening so don't rush him.
It will be an EPIC
He said it will around Febuary.
Yep, still planning on February!
ugh even mr beat gets the stupid yakkos world recomendations
😆 I get those, too.
Hey, I love watching those!
bruh
I’d like to point out that the first recommended video on Mr. Beat’s TH-cam is about curing a hangover.
Thanks for talking slow for those of us with attention difficulty 🙏
Short answer: capitalism
Yes
I dont know if its intentional but i really dig the way you light your videos, so dramatic :D
Like the backdrop, or the lighting on me? I'm genuinely curious.
@@iammrbeat the lighting on you. you look ripped ahhaaha theres a shadow running down the middle of, well, you and its very interesting to look at
When your on a break and mr beat uploads a video
Very informative video Mr Beat! I have a somewhat controversial question. What are your thoughts on the recent events on Capitol Hill?
I like this background blue color. It compliments you well.
Thank you so much, kind woman. 😍 🙂
Well, I know what caused it for me and I don't know if I'll ever feel true happiness again... Sorry for the sad thought; it's just what first entered my thoughts... So, anyway, to say something more upbeat: congratulations on approaching 300,000 subs! 👍
Very funny take on a very serious topic!
I liked this deeper dive
In school it really wasn’t fleshed out like this
I've never been this early. I love you mate
Well glad you made it early enough where I saw your comment. :D
Thank you for your useful videos , Mr Beat ! I’m Waiting for Romania and Republic of Moldova comparison since I live in Romania
I love the suggestion, and so glad you watch from there!
Moldova should just be part of Romania like it used to be, it's only sperate because the Soviet Union stole it with the Molotov Ribbentrop pact
They are so different from one another in Romania you speak Romanian in Moldova, Russian
When I went to UC Berkeley (class of 72) I lived in Bowles Hall, at the top of the campus. It was named after Chester Bowles, who donated the money for it. But he died at the beginning of the Depression and his wife lived there as the first house mother, until her fortune was regained.
What did he die of?
@@iammrbeat Possibly suicide, but I don't recall with any confidence. It was a long time ago.
You are the most underrated youtuber.
I remember reading in university that overbuilding railroads and a leveling off of long term demand was a catalyst.
I honestly think those definitions are really helpful since I personally am still in 9th grade so no-one has taught me U.S history yet.
It's been over ten years and yet the words "credit crunch" made me shudder in disgust before I knew what was happening. Mine was far from being the worst experience of that but I'd still rather not have to do it again.
This is actually more important than my school.