Social Sciences, asked by navya71, 11 months ago

explain about great depression began aruod 1929?

Answers

Answered by ash200015
1
The Great Depression was a worldwide economic depression that lasted 10 years. Its kickoff was “Black Thursday," October 24, 1929. That's when traders sold 12.9 million shares of stock in one day, triple the usual amount. Over the next four days, stock prices fell 23 percent in the stock market crash of 1929. The Great Depression had already started in August when the economy contracted.
Unemployment Reached 25 Percent
The Great Depression affected all aspects of society. By its height in 1933, unemployment had risen from 3 percent to 25 percent of the nation’s workforce. Wages for those who still had jobs fell 42 percent. U.S. gross domestic product was cut in half, from $103 billion to $55 billion. That was partly because of deflation. Prices fell 10 percent each year. Panicked government leaders passed the Smoot-Hawley tariff to protect domestic industries and jobs. As a result, world trade plummeted 65 percent as measured in U.S. dollars.

It fell 25 percent in the total number of units.

Life During The Depression
The Depression caused many farmers to lose their farms. At the same time, years of over-cultivation and drought created the “Dust Bowl” in the Midwest. It ended agriculture in a previously fertile region. Thousands of these farmers and other unemployed workers looked for work in California. Many ended up living as homeless “hobos.” Others moved to shantytowns called “Hoovervilles," named after then-President Herbert Hoover.

What Caused It
According to Ben Bernanke, the past chairman of the Federal Reserve, the central bank helped create the Depression. It used tight monetary policies when it should have done the opposite. Bernanke highlighted the Fed's five critical mistakes
Unemployment Reached 25 Percent 

The Great Depression affected all aspects of society. By its height in 1933, unemployment had risen from 3 percent to 25 percent of the nation’s workforce. Wages for those who still had jobs fell 42 percent. U.S. gross domestic productwas cut in half, from $103 billion to $55 billion. That was partly because of deflation. Prices fell 10 percent each year. Panicked government leaders passed the Smoot-Hawley tariff to protect domestic industries and jobs. As a result, world trade plummeted 65 percent as measured in U.S. dollars.

It fell 25 percent in the total number of units. 

Life During The Depression

The Depression caused many farmers to lose their farms. At the same time, years of over-cultivation and drought created the “Dust Bowl” in the Midwest. It ended agriculture in a previously fertile region. Thousands of these farmers and other unemployed workers looked for work in California. Many ended up living as homeless “hobos.” Others moved to shantytowns called “Hoovervilles," named after then-President Herbert Hoover. 

What Caused It

According to Ben Bernanke, the past chairman of the Federal Reserve, the central bank helped create the Depression. It used tight monetary policies when it should have done the opposite. Bernanke highlighted the Fed's five critical mistakes

Answered by shruti4534
1
The Great Depression was a severe worldwide economic depression that took place mostly during the 1930s, beginning in the United States. The timing of the Great Depression varied across nations; in most countries it started in 1929 and lasted until the late-1930s.[1] It was the longest, deepest, and most widespread depression of the 20th century.[2] In the 21st century, the Great Depression is commonly used as an example of how far the world's economy can decline.[3]

The Great Depression started in the United States after a major fall in stock prices that began around September 4, 1929, and became worldwide news with the stock market crash of October 29, 1929 (known as Black Tuesday). Between 1929 and 1932, worldwide gross domestic product (GDP) fell by an estimated 15%. By comparison, worldwide GDP fell by less than 1% from 2008 to 2009 during the Great Recession.[4] Some economies started to recover by the mid-1930s. However, in many countries, the negative effects of the Great Depression lasted until the beginning of World War II.[5]

The Great Depression had devastating effects in countries both rich and poor. 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%.[6]

Cities around the world were hit hard, especially those dependent on heavy industry. Construction was virtually halted in many countries. Farming communities and rural areas suffered as crop prices fell by about 60%.[7][8][9] Facing plummeting demand with few alternative sources of jobs, areas dependent on primary sector industries such as mining and logging suffered the most.[10]

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