The Great Depression was an economic drop down in northwestern America, Europe, and other industrialized areas of the world that began in 1929 and lasted until about 1939. It was the long-lived and most severe depression ever experienced by the industrialized Western world.
Though the U.S. economy had gone into depression half a dozen months earlier, the Great Depression may be said to read begun with a catastrophic collapse of rootage-market prices on the New York telephone circuit Exchange in October 1929. During the next three years stock prices in the fall in States continued to fall, until by late 1932 they had dropped to solitary(prenominal) about 20 pct of their value in 1929. anyway ruining many thousands of individual investors, this precipitous decline in the value of assets greatly strained banks and other financial institutions, particularly those holding stocks in their portfolios. Many banks were consequently forced into insolvency; by 1933, 11,000 of the United States 25,000 banks had fai conduct. The failure of so many banks, combined with a general and nationwide loss of confidence in the economy, led to much-reduced levels of spending and demand and hence of production, thus aggravating the down contendds spiral. The result was drastically falling output and drastically boost unemployment; by 1932, U.S. manufacturing output had fallen to 54 percent of its 1929 level, and unemployment had go to between 12 and 15 million workers, or 25-30 percent of the work force.
The Great Depression began in the United States solely quickly turned into a worldwide economic slump owing to the special and intimate relationships that had been forged between the United States and European economies after World War I.
The United States had emerged from the war as the major creditor and financier of postwar Europe, whose national economies had been greatly weakened by the war itself, by...
Youve written a very(prenominal) nice essay on the The Great Depression. For nations to impose tariffs in response to an economic downturn may seem reasonable but the consequences can be disastrous. One of the main causes of act what might otherwise have been a slump into a all-inclusive blown depression is thought to be the Smoot-Hawley tariff Act of 1930 which raised duties on goods imported into the United States to historically high levels. The ill conceived law is still cited in capital letter today as justification for free trade, which benefits the international economy much more than short-sighted protectionist measures.
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