How Did The Great Depression Affect The Economy

Words: 337
Pages: 2
Open Document
The Great Depression is known as one of the turning points in the world economy. Its timing and severity varied across different countries based on their industrial activity and level of development at the time. The Great Depression is credited as the harshest adversity in the history of American economics. While it is common knowledge that the stock market crash of October 29, 1929 held a generous amount of blame for depression, industrial production was already deteriorating at an annual rate of twenty percent in the months preceding the crash and an average of 600 banks failed per year in the decade leading up to the depression. The decrease in prices of crops and commodities was also a motivator to the recession that began in August, 1929; just two months before the start of the depression. Not only was the economic crisis taking its toll in the United States, it had already begun in select European countries and quickly spread due to the decrease in international trade because of high tariffs. The abandonment of the gold standard, the system by which the value of currency was defined in terms of gold, for which the currency could be exchanged, was …show more content…
Within the next year nations such as Canada, Italy, Belgium, Poland, and Brazil commenced their recessions and, ultimately, their depressions. Albeit that the severity varied from country to country, the world did face an average of a 28.4% decline in industrial production annually.
In the United States the Great Depression hit hard. Between the inauguration and termination of the depression, industrial production dropped 47% and the country’s gross domestic product (GDP) fell 30%. A huge number when compared to America’s next worst recession during the twentieth century in the years of 1981 through 1982, the United States’ GDP only fell
Show More

Related Documents: How Did The Great Depression Affect The Economy

How Did The Great Depression Affect The Economy In The 1930s

affected by an economic crisis. This economic failure was called The Great Depression. When the economy started failing and businesses closed, people lost faith in the government. “When Franklin Delano Roosevelt was elected president in 1932, he inherited a nation in the pits of an economic crisis that cost millions their livelihoods and life savings (Great New Deal).” Eventually, the Congress passed 2 New Deals to help bring the economy up, and help in many other needed areas (Alchin). These New Deals…

Words 782 - Pages 4

Similarities Between Canada And The Great Depression

J. Santiago Throughout the years of 1929 to 1939 there was a world wide Depression. The United States of America and Canada both suffered from the Great Depression. When the Great Depression hit America it truly made the American dream seem impossible . Most Americans were not able to purchase new automobiles, new houses and other durable goods. Canada was one of the worst affected countries financially and economically the country began to collapse regardless of what was done by political power…

Words 970 - Pages 4

What Caused The Great Depression Dbq

The Great Depression was a major event for the United States. It lasted for about a decade, from 1929 to 1939 and affected 95% of Americans. The Great Depression was caused by installment buying, speculation in the stock market, and unemployment. Installment buying was one of the early causes of the Great Depression. Installment buying is purchasing an item over a period of time and paying it back in periodic payments. As stated in document 6, 60% of automobiles were bought on an installment plan…

Words 504 - Pages 3

The Great Depression: History Of The Western Industrialized World

“The Great Depression (1929-39) was the deepest and longest-lasting economic downturn in the history of the Western industrialized world.” (The Great Depression). The Great Depression was easily one of the most detrimental things to happen to the United States of America. Not only did It cause temporary turmoil amongst Americans, but it even led to many horrible events such as World War II- “…there was a great disparity between rich and poor. More than 60% of the population was living below poverty…

Words 538 - Pages 3

Analyzing Randall Parker's Why The Great Depression

Szymon Bozek Great Depression Paper The Great Depression was one of the worst economic downturns in the history of the industrialized world. The economy stumbled, the unemployment rate rose to 25% and many banks failed. Randall Parker’s An Overview of the Great Depression, Michael A. Bernstein’s Why the great Depression was Great, and Thomas Heinrich and Bob Bachelor’s Kimberly Clark discus the great depression with different interpretations. Michael A. Bernstein interpretation of the great depression…

Words 1573 - Pages 7

Causes Of The Great Depression

Could the great depression happen again? The hopes of any human in their right mind would be no. The major questions surrounding an economic depression of this proportion is first what causes it, second how can we limit the negative affects it may have on the worlds economy and lastly how can we quickly recover from an economic depression? How did the recessionary gap cause this and would it be better to have an inflationary gap instead? A recessionary gap is defined as real GDP being lower…

Words 625 - Pages 3

Essay about Unemployment and United States

lacking it not only affects them but their families and their economy. The sad thing is the families of these people are victims to their loved ones lack. As far as the economy goes many people are under the misconception that if they don’t have a job it’s only harming them but the truth is it affects our entire economy. When people don’t have jobs they don’t have money; therefore they are not helping to fund the economy. Without people putting money back into the economy the economy crashes. As one…

Words 1956 - Pages 8

In What Ways Did The Great Depression Affect America

The Great Depression The Great depression occurred in the decade of 1929 to 1939, and was a horrible time in the United States. This period basically consisted of a great global financial crisis that happened before the Second World War. It all began when people started inventing new things that changed the economy. People started investing in so many things, which almost everyone had lower amounts of money, so they started making loans and having debts, and then profits began to go down, making…

Words 336 - Pages 2

Fiscal: New Deal and Film Portray Blacks Essay

1. How did racism affect blacks during the Great Depression? Racism affected blacks during the Great Depression by the unemployment rates being extremely higher than that of whites. During this time The Agricultural Adjustment Administration paid farmers to destroy their crops and livestock in order to increase market prices, yet most federal funds which were meant to benefit black sharecroppers and tenant farmers. These funds then ended up in the hands of white landlords as a result of local distribution…

Words 362 - Pages 2

CItizens and the great depression Essay

1930’s Americans experienced the Great Depression as well as the New Deal. During this time the relationship between the government and citizens changed drastically. The government took a grater roll in the everyday lives of citizens both socially and politically. The New Deal created by the Roosevelt Administration made an attempt to stimulate the economy during this very thorny time. In the following essay we will discuss the factors that caused the great depression and the mark it left in the United…

Words 1585 - Pages 7