The Reasons of the Great Depression During 1930s

In: Historical Events

Submitted By qlff6
Words 1935
Pages 8
Introduction
The Great Depression was a severe worldwide economic depression in the decade preceding World War II. The timing of the Great Depression varied across nations, but in most countries it started in 1930 and lasted until the late 1930s or middle 1940s.1 This depression was the longest, deepest, and most widespread depression of the 20th century. As we all known, the Great Depression began at September 4, 1929, with the sudden fall in stock prices, and rapidly became worldwide news with the stock market crash of October 29, 1929 (known as Black Tuesday). It started from USA, and quickly sweep European countries as well as all over the world. This crisis had huge impact on all the people across the world, various industries, economic fields, and all the social life. Personal income, tax revenue, profits and prices dropped, while international trade plunged by more than 50%. Unemployment in the U.S. rose to 25%, and in some countries rose as high as 33 %2.
The Features of the Great Depression
Compared with all the crisis happened before and after, this crisis gets some distinct features: firstly, the scope of the influence of the great depression is so wide. At that time, USA was the most powerful country in the world as well as the biggest creditor country. The American finance had close connection with all the capitalist countries and the international business market.
The crisis spread from American to the vital capitalist countries Germany, Japan, Britain and France. The capitalist countries wanted to transfer the crisis to other countries, so the depression affected all the colonies in a wide range, semi-colonies and underdeveloped countries. Besides, if we analyze the economic scale of this Great Depression, we could find the credit and loan crisis, industrial crisis and agricultural crisis all happened together. Secondly, the duration of the Great…...

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