• The Great Depression facts, dates, years, causes, effects of Great Depression

The Great Depression facts, dates, years, causes, effects of Great Depression

5/5 (1) votes

Friday, 27/05/2016 05:05

Check out The Great Depression facts to find out what was the Great Depression, what year was the Great Depression, years of the Great Depression, dates, what caused the Great Depression, causes of Great Depression, effects of the Great Depression, economic depression. History facts

What was the Great Depression?

The Great Depression was a severe worldwide economic depression that took place during the 1930s. The timing of the Great Depression varied across nations; however, in most countries it started in 1929 and lasted until the late 1930s. 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.

What caused the Great Depression, causes of the Great Depression

The Great Depression

1.  Stock Market Crash of 1929

Many believe erroneously that the stock market crash that occurred on Black Tuesday, October 29, 1929 is one and the same with the Great Depression. In fact, it was one of the major causes that led to the Great Depression. Two months after the original crash in October, stockholders had lost more than $40 billion dollars. Even though the stock market began to regain some of its losses, by the end of 1930, it just was not enough and America truly entered what is called the Great Depression.

The Great Depression stock market

Great Depression and stock crash

2.  Bank Failures

Throughout the 1930s over 9,000 banks failed. Bank deposits were uninsured and thus as banks failed people simply lost their savings. Surviving banks, unsure of the economic situation and concerned for their own survival, stopped being as willing to create new loans. This exacerbated the situation leading to less and less expenditures.

3.  Reduction in Purchasing Across the Board

With the stock market crash and the fears of further economic woes, individuals from all classes stopped purchasing items. This then led to a reduction in the number of items produced and thus a reduction in the workforce. As people lost their jobs, they were unable to keep up with paying for items they had bought through installment plans and their items were repossessed. More and more inventory began to accumulate. The unemployment rate rose above 25% which meant, of course, even less spending to help alleviate the economic situation.

4.  American Economic Policy with Europe

As businesses began failing, the government created the Smoot-Hawley Tariff in 1930 to help protect American companies. This charged a high tax for imports from foreign countries. The unintended consequence of this tariff was that less trade occurred between America and foreign countries. In addition, some countries retaliated economically against the US. 

5.  Drought Conditions

While not a direct cause of the Great Depression, the drought that occurred in the Mississippi Valley in 1930 was of such proportions that many could not even pay their taxes or other debts and had to sell their farms for no profit to themselves. The area was nicknamed The Dust Bowl. This was the topic of John Steinbeck's The Grapes of Wrath.

The Dust Bowl and Great Depression

Dust Bowl in Texas

Effects of the Great Depression 

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%.

Effects of the Great Depression

The Great Depression effects

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 approximately 60%. Facing plummeting demand with few alternate sources of jobs, areas dependent on primary sector industries such as mining and logging suffered the most.

Check out for more coolrandomweird but truecrazyfun, amazing factsfact of lifefact of the dayfunny videosvideo clipsfunny picturesimagesphotos.

Ryan Carter

You Should Know

Most Popular

Quick Facts

CATEGORIES

FUNNY VIDEOS

FUNNY PHOTOS