The Great Depression What have you prepared to withstand the Great Recession?
The Great Depression was a period of global economic decline that began in most places in 1929 and ended in the 1930s and 1940s, depending on the region. That event was the largest and most significant recession in modern history, and a benchmark for how far the world’s economy can go in the 21st century. The Great Depression began in the United States, and historians always refer to the stock market crash on October 29, 1929, known as Black Thursday, as the day it began. The end of the Great Depression in the United States was around 1939 when the war economy of World War II began.
Deflation has a very negative impact on both developed and developing countries. International trade is greatly affected and per capita income, profit tax It also affects prices and profits. Cities around the world have been hit hard, with cities that rely on large-scale industries the worst hit. In many countries, construction activities have come to a near standstill. Crop prices in agriculture and rural areas have fallen by 40% to 60%, which is very damaging. With upside-down demand and few jobs that can be changed, basic consumer goods production activities such as farming, Mining and logging areas are the most affected. Not long after the 1929 Wall Street crash, there was still optimism. John D. Roberts said, “A lot of people are depressed right now. I’m 93 years old. I’m 93 years old. I’m 93. Greatness always comes back, and it will come back now.”
The Great Depression ended at different times depending on the country. For later history, read How People Lived in World War II. Most countries have started programs for welfare, and most of them have been very politically progressive, pushing left to right. In some countries, disillusioned citizens have turned into patriotic demagogues. The worst was Adolf Hitler who started World War II in 1939.
Evolutions[edit]
The Great Depression was not an overnight economic collapse. The stock market rebounded in the early 1930s and returned in April to levels similar to those of early 1929. However, it was still 30 percent below the stock market peak of September 1929. In the first half of 1930, governments and businesses spent even more than they did at that time a year ago. But consumers, including many who lost heavily in the stock market last year, cut their spending by 10 percent. In the northern summer of 1930, the agricultural heartland of the United States was devastated by a severe drought.
In the early 1930s, there were many people who would give credit and get it at low interest rates, but most people did not want to incur new debt by borrowing. In May 1930, car sales fell below what they had been in 1928. Although prices generally began to fall, wages remained about the same as in 1930. But in 1931, wages began to decline. The situation is worst in the agricultural areas as the prices of consumer goods have fallen. The same is true of mining and logging, where unemployment is high and there are few opportunities to switch to other occupations. The economic decline of the United States was an early factor in the economic decline of other countries. However, depending on the internal strengths and weaknesses of each country, the situation will either improve or worsen. The global economic collapse was exacerbated by self-interested policies enacted by various countries in a frantic attempt to strengthen their economies, such as the Smoot-Hawley Import Products Act of 1930 and countervailing import restrictions by other countries. From the late 1930s, the economy gradually declined, reaching its lowest point in March 1933.