Question

describe the main economic depression between 1929 to 1932 and its impact on USA.
( in points if possible)

Answer 1

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now your answer:

the main event of economic dipression between 1929 to 1932 are :


1) the wall street exchange got down and the economic conditions of USA become worst.


on 24oct 1929 1.5 crore of share was sold which result in bad economic conditions.

the conditions of farmer become worst
the people become unemployed

the industry comes upto 40% of earlier

the businessman got afaird that they become labour

people or youth start participating in criminal activity

Answer 2

1. The Great Depression of 1929 devastated the U.S. economy. Half of all banks failed. Unemployment rose to 25 percent and homelessness increased. Housing prices plummeted 30 percent, international tradecollapsed by 60 percent, and prices fell 10 percent per year. It took 25 years for the stock market to recover.

2. But there were some beneficial effects. The New Deal programs installed safeguards to make it less likely that the Depression could happen again.

3. 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.

4. 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.

5. 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.

6. 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.

7. 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. 

8. 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.

9. The Depression affected politics by badly shaking confidence in unfettered capitalism. That type of laissez-faire economics is what Herbert Hoover advocated, and it failed badly.

10. As a result, people voted for Franklin Roosevelt. His Keynesian economicspromised that government spending would end the Depression. The New Deal worked. In 1934, the economy grew 10.8 percent in 1934 and unemployment declined. 

11. But FDR became concerned about adding to the $5 trillion U.S. debt. He cut back government spending in 1938, and the Depression resumed. No one wants to make that mistake again. Politicians rely instead on deficit spending, tax cuts and other forms of expansionary fiscal policy. That's created a dangerously high U.S. debt.

12. The Depression ended in 1939 as government spending ramped up for World War II. That's led to the mistaken belief that military spending is good for the economy.