THE GREAT DEPRESSION OF THE WORLDIt was the great tragedy in worldwide which contains economic downfall that began (1929-1939).Every country of the world was suffered from deflation. It is one of the longest period in which economic activities become low.
It destroyed economies almost all over the world. More than a half of International trade was slashed. It produced a large number of un-employment.The great depression was also called “Black Tuesday”. It was caused by wall of street crashed of October 29, 1929 which affected the stock market. It was the biggest crash of stock market of 1929.Stocks were started to falling down the investors were going to sell it. An awkward situation is developed.
More than $26 billion value of stock is lost.Prices were decreasing, there were number of banks that invested a large amount of their customers savings in the stock market were compelled to close. The people withdraw their money from banks and the banks were going to be closed.Farming condition was also very down. The land was unproductive of dust and dirt so it is known as the “Dust Bowl”. Poor farmers borrowed some money for buy seed and paid money back after reaping, when dusty storms destroyed the crops farmers became poor again.In Germany the unemployment was very high six million employees were dismissed in 1933.
Great Britain exports and industrial units were badly spoil.In 1933, Franklin D. Roosevelt elected as a president and he created a new deal in which the Government had decided to decrease the rate of unemployment, improved agricultural and education system etc but new deal was not perform a helpful role. In 1939 the income per capita was not too much high. Although in 1929 it was a great change the government policies gave benefits to the public. The US economy was increased due to this due to this reinstitution.LINKS; www.artstor.blog and www.onlineessays.com
