What was great economic depression?
The Great Economic Depression was a severe worldwide economic depression that lasted from 1929 to 1939. It was the longest, deepest, and most widespread depression of the 20th century. Here are the details of the Great Economic Depression:
Causes:
- Stock market crash: On October 29, 1929, the stock market crashed, causing investors to lose billions of dollars.
- Overproduction: During the 1920s, there was a surge in production, but demand did not keep up, causing a glut of goods.
- Banking crisis: Banks had invested heavily in the stock market and suffered huge losses, leading to bank failures.
- Protectionism: Countries began imposing tariffs and other trade barriers, reducing international trade.
Effects:
- Unemployment: Millions of people lost their jobs, with unemployment rates reaching 25% in some countries.
- Poverty: Many families were unable to afford basic necessities and turned to charity for help.
- Bank failures: Thousands of banks failed, causing people to lose their savings.
- Reduction in international trade: Countries imposed tariffs and other trade restrictions, reducing international trade and worsening the depression.
Responses:
- Government intervention: Governments implemented policies such as public works programs and monetary policies to try to stimulate the economy.
- International cooperation: The international community attempted to combat the depression through organizations such as the World Economic Conference and the International Monetary Fund.
- Rise of fascism: The depression led to the rise of fascist regimes in Europe, such as Nazi Germany, which promised to solve the economic crisis.
In conclusion, the Great Economic Depression was a devastating period in world history, caused by a combination of factors including the stock market crash, overproduction, and protectionism. It had widespread effects on employment, poverty, and international trade, and led to government intervention and international cooperation to try to combat the crisis.
What was great economic depression?
The Great Depression was a severe worldwide economic depression that took place mostly during the 1930s, originating in the United States. The timing of the Great Depression varied across nations; in most countries it started in 1929 and lasted until 1941.It was the longest, deepest, and most widespread depression of the 20th century. In the 21st century, the Great Depression is commonly used as an example of how far the world's economy can decline.The depression started in the United States after a major fall in stock prices that began around September 4, 1929, and became worldwide news with the stock market crash of October 29, 1929 (known as Black Tuesday). Between 1929 and 1932, worldwide gross domestic product (GDP) fell by an estimated 15%. By comparison, worldwide GDP fell by less than 1% from 2008 to 2009 during the Great Recession. Some economies started to recover by the mid-1930s. However, in many countries, the negative effects of the Great Depression lasted until the beginning of World War II.The Great Depression had devastating effects in countries both rich and poor. Personal income, tax revenue, profits and prices dropped, while international trade plunged by more than 50%. Unemployment in the U.S. rose to 25% and in some countries rose as high as 33%.Cities all around the world were hit hard, especially those dependent on heavy industry. Construction was virtually halted in many countries. Farming communities and rural areas suffered as crop prices fell by about 60%.Facing plummeting demand with few alternative sources of jobs, areas dependent on primary sector industriessuch as mining and logging suffered the most.
To make sure you are not studying endlessly, EduRev has designed Class 9 study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in Class 9.