The Great Depression was a severe economic depression worldwide that lasted from 1929 to 1939. It was the longest, deepest, and most widespread depression of the 20th century.


Several factors led to the Great Depression, some of which include:

• Stock Market Crash: The stock market crash of 1929 is considered the beginning of the Great Depression. The crash occurred on October 24, 1929, and triggered a chain reaction of economic events.


• Bank Failures: The banking system failed, and many banks closed their doors. The banks' failure led to the loss of savings of many people, which further worsened the economic crisis.


• Overproduction and Underconsumption: The economy was producing more goods than people could buy. This led to a surplus of goods, which resulted in companies reducing production and laying off workers, further exacerbating the economic crisis.


• Protectionism: Countries introduced protectionist policies, such as tariffs and quotas, which reduced international trade. This led to a decline in global economic activity.


• Speculation: Investors engaged in risky investments, such as buying stocks on margin, which led to the stock market crash.

The Great Depression had a significant impact on the global economy and society, some of which include:

• High Unemployment: Unemployment skyrocketed, and many people lost their jobs. The unemployment rate in the US reached 25% in 1933.


• Banking System Failure: Many banks failed, and people lost their savings. This led to a loss of faith in the banking system and the government.


• Global Economic Decline: The Great Depression was a global economic crisis, and many countries were affected. International trade declined, and many countries introduced protectionist policies, which worsened the economic crisis.


• Social and Political Unrest: The Great Depression led to social and political unrest. People protested against the government and demanded change. The rise of extremist political movements, such as fascism and communism, was also a result of the economic crisis.


• Transformation of Government Role: The Great Depression transformed the role of the government in the economy. Governments began to play a more active role in regulating the economy and providing social welfare programs.

It began in 1929 and lasted mid 1930s .During this period ,most parts of the world experienced declines in production, employment , incomes and trade.
Causes....
The Great Depression was caused by a combination of several factors :

* Agricultural overproduction was a major factor. As a result , agricultural prices fell.

* As price fell and agricultural incomes declined , farmers tried to expand production.

* This increased the volume of goods in the market. The situation got worsened in the market.

* Prices fell down further. Farm produce began to rot due to the lack of buyers.

Impact....
The Great Depression affected indian trade:

* India's exports and imports halved between 1928 and 1934.

* As prices crashed , price in India also affected.