American History

The book The great Crash had been written by John Kenneth Galbraith. The book was published in the year 1954 that had been received and read widely by a great deal of economist. The book is a thorough evaluation of the great depression that was caused by the speculation in the stock market. The book helps the readers to understand the reasons, causes and solutions to problems of Crash of Wall Street.

The book had been divided into two parts implementing two different approaches towards the evaluation of the causes of Wall Street Crash that took place in the year 1929. The first part of the book is a brief account of the issues and consequences that took place during the Crash of Wall Street. The main intent of the author for writing the book is to find the causes of the Crash of Wall Street in1929 because this crash further contributed in the economic problems which lead to Great Depression (Galbraith).

The author had also briefly describes the after effects of the Crash of Wall Street that further led to great depression. The author had asserted most of the basic aftermath of the crash such as contraction of the demand of goods by the consumer that caused a breakage of investments and lender plans. Another great aftermath that came to observation was the fact that embezzlement took place when the American economy was turning into a bubble economy. After the Crash of the Wall Street in 1929, a great deal of embezzlement reports became froth almost every day. The occurrence of such reports was reporting the figures of the fraud that was done by employees during the process (Galbraith).

The reader would find the book as an interesting read as it provides a through background of the most devastating and disturbing market crash ever observed in the economic history of United States. The book also discussed previous bubbles that took place in the cause and effects of Crash of Wall Street. The author had briefly describes the concept of Florida real-estate bubble that took place in 1920. The author claims that people sell their paper properties over and over due to give rise to the speculation for the sake of speculation that resulted in economic crisis. In parallel, the economic crisis of 2008 in United States had the same consequence as they were in 1920 (Galbraith).

The author had mentioned a great deal of causes of the Crash of Wall Street took place in 1929. According to the authors brief account in the book, it had been observed that structure of corporation and industries served as a basic and a more divergent cause of Crash of Wall Street. Another cause of economic crisis was simply because unregulated and big equitable measures were conflicting with the distribution of wealth and income surpluses. Furthermore, the author has also mentioned that the weak structure of financing and banking was another reason of Crash because most of the entities worked independently (Galbraith).

The readers could easily establish understanding of the economic problems that took place in the 1929. The book serves as a reference book for the economist of the world to counter against economic instability. The author helps in producing intervention for the finance policy and interventions. It could be observed that the contemporary situation of the economy of United States is almost on its verge as once it was in 1929. John Kenneth had described a great deal of instances and arguments that suggests that the consequences of economic crisis which were observed in 1929 have been observed in 2008 United States economic crisis. History repeats itself but the question that arises is that even after a great deal of intervention proposed by many economists including John Kenneth Galbraith, why economic crisis are being observed in United States. John Kenneth had also presented figures that could largely be hitting or bouncing the economy once again. The book is a masterpiece in terms of presenting economic history (Galbraith).

Another interesting account of the author in the book reflects the psychology of the people. John Kenneth describes that it is interesting to note that people become greedy when the economy is on the verge of rising economic figures but when the bubble becomes a crashed bubble, people become fearful. The psychology does sense what is unusual and could result in a negative aftermath but people still fail to learn from the shortcomings and failures (Galbraith).

Other management deficiencies are also regarded as a cause of Crash of Wall Street in 1929 because decision making serves as the basic formula to analyze a problem and counter it. During the economic crisis of 1929, lack of leadership and effective decision making was observed. Poor economic policies were another drastic fact about the Crash of Wall Street. The author had also claimed in the book that some of the economists did claim that the policies need to be looked upon and must be amended but the fact was ignored and speculation became the only purpose of economists, investors and financers. The author had referred ignorance of claim of amendment in the financial policies to lack of economic intelligence (Galbraith).

The authors intent of writing this book is successful because he had managed to describe almost each and every aspect of the economic crisis along with the contextual background of past economic crisis and predicted figures for future economic crisis (Galbraith).

The purpose of the author is to educate the readers regarding economy rise, boom and fall. The book is written in a very easy tone so that every reader can understand the book. Every concept and issues that had been accounted and defended by the author in the book have been done on the basis of factual information and references to the economic policies which have been implemented in the past. Some of the critics believe that there are no interventions presented by John Kenneth which can be implemented to get away with economic problems because he was noted to be a young economist at the time of the publication of The Great Crash. Such a claim had been widely overshadowed the opposite claims of people who have evaluated that John Kenneth does have a point to be focused and applied (Galbraith).

The book is an interesting read and is recommended to be read by people who are interested in stock market, finance, economic studies etc. The book is a marvelous collection of fluctuated and factual account of economic distress and crisis from 1920 to 1932. The book is capable enough to remove the myths of people and accounts that economic crisis are not observed in a month. In fact it is a process that continues due to failed implementation of policies and structures.