What happened in the Great Depression?
The 1920s were a time of prosperity and growth, but they were cut short by the onset of the Great Depression. The events and consequences of the Great Depression are as follows:
- Stock Market Crash: One of the most notable events was the infamous stock market crash of 1929, commonly referred to as “Black Tuesday.” This collapse of stock prices on Wall Street had a ripple effect on the global economy, setting off a chain reaction of economic turmoil.
- Bank Failure: As a direct result of the stock market crash, numerous banks failed, causing a financial crisis of colossal proportions. Unfortunately, the lack of effective banking regulations only served to worsen the situation, ultimately resulting in a widespread economic meltdown.
- Unemployment: Perhaps the most devastating consequence of the Great Depression was the staggering levels of unemployment it brought about. Businesses struggled to stay afloat amidst the economic downturn, resulting in massive job losses and unemployment rates reaching alarming highs.
- International Trade Decline: International trade experienced a significant decrease due to the implementation of protectionist policies and a decrease in global demand, further exacerbating the economic crisis as nations struggled to recover. Industrial production took a sharp downturn as factories operated well below their capacity. Numerous industries saw a drastic decline in output, worsening the economic downturn.
- Housing Crisis: The housing market witnessed a collapse as a result of the depression, resulting in homelessness. Many individuals were forced to abandon their homes due to their inability to make mortgage or rent payments.
Great Depression (1929-1945)
Great Depression, spanning from 1929 to 1945, was one of the most severe economic downturns in modern history. Its effects began in the US and expanded throughout the world, causing widespread unemployment, poverty, and social unrest. A complex interaction of social, political, and economic forces formed this era, changing the path of history and the paths taken by individual nations.
In this article, we will read about the Great Depression (1929-1945), its causes, its effect on the global economy, and much more.
Table of Content
- What was the Great Depression?
- What happened in the Great Depression?
- Causes of the Great Depression
- Impact of the Great Depression on the Global Economy
- When did the Great Depression End?