critically discuss the great depression and its consequences
Answers
Explanation:
The economy shrank 50 percent in the first five years of the depression. In 1929, economic output was $105 billion, as measured by gross domestic product. That's the equivalent of $1.057 trillion today.
The economy began shrinking in August. By the end of the year, 650 banks had failed. In 1930, the economy shrank another 8.5 percent, according to the Bureau of Economic Analysis. GDP fell 6.4 percent in 1931 and 12.9 percent in 1932.
By 1933, the country had suffered at least four years of economic contraction. It only produced $57 billion, half what it produced in 1929. That was partly because of deflation. The Consumer Price Index fell 27 percent between November 1929 to March 1933, according to the Bureau of Labor Statistics. Falling prices sent many firms into bankruptcy. The BLS also reported that the unemployment rate peaked at 24.9 percent in 1933.
New Deal spending boosted GDP growth by 10.8 percent in 1934. It grew another 8.9 percent in 1935, a whopping 12.9 percent in 1936, and 5.1 percent in 1937.
Unfortunately, the government cut back on New Deal spending in 1938, and the depression returned. The economy shrank 3.3 percent. But preparations for World War II sent growth up 8 percent in 1939 and 8.8 percent in 1940. The next year, Japan bombed Pearl Harbor, and the United States entered World War II.
The New Deal and spending for World War II shifted the economy from a pure free market to a mixed economy. It depended much more on government spending for its success. The timeline of the Great Depression shows this was a gradual, though necessary, process.
The great depression and its consequences
Explanation:
- The Great Depression was a critical global economic depression that happened often through the 1930s, originating in the United States.
- The timing of the Great Depression differed over countries; in most nations, it began in 1929 and continued until late 1930.
Consequences of the great depression:
- Due to economic depression, America's economic condition becomes most critical.
- It makes people of Germany unemployed.
- People often involved with betting and illegal activities.
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