Explain the causes of the Great Depression .
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The causes of the Great Depression were
(i) Conditions created by war There was an immense industrial expansion due to the increased demand of goods supplied to the army, during the period of the First World War. After the war, the demand for these goods suddenly dropped and so, there was no demand in many industries. There was also a large fall in the agricultural prices due to reduced demand.
(ii) Over production in agriculture Agricultural over production was another major factor responsible for the depression. This was made worse by falling agricultural .prices. As prices slumped and agricultural incomes declined, the farmers tried to increase the production and bring a larger volume of produce to the market to maintain their overall income. This worsened the situation by pushing down the prices of farm produce further.
(iii) Shortage of loans In the mid-1920s, many countries financed their investments through loans from the USA. While it was often very easy to raise loans in the USA during the boom period, lenders in the USA panicked at the first sign of trouble. Countries that depend crucially on US loans, now faced an acute crisis.
(iv) Multiple effect With the fall in prices and the prospect of a depression i.e. banks in the USA slashed domestic lending and some stopped bank loans, thousands of banks went bankrupt and were forced to close down. Factories closed, leading to unemployment, which further aggravated the crises. The US banking system collapsed.
(v) Large-scale unemployment Farm could not sell their harvests, businesses collapsed. As a result, large scale unemployment occurred.
I hope it is helped you
(i) Conditions created by war There was an immense industrial expansion due to the increased demand of goods supplied to the army, during the period of the First World War. After the war, the demand for these goods suddenly dropped and so, there was no demand in many industries. There was also a large fall in the agricultural prices due to reduced demand.
(ii) Over production in agriculture Agricultural over production was another major factor responsible for the depression. This was made worse by falling agricultural .prices. As prices slumped and agricultural incomes declined, the farmers tried to increase the production and bring a larger volume of produce to the market to maintain their overall income. This worsened the situation by pushing down the prices of farm produce further.
(iii) Shortage of loans In the mid-1920s, many countries financed their investments through loans from the USA. While it was often very easy to raise loans in the USA during the boom period, lenders in the USA panicked at the first sign of trouble. Countries that depend crucially on US loans, now faced an acute crisis.
(iv) Multiple effect With the fall in prices and the prospect of a depression i.e. banks in the USA slashed domestic lending and some stopped bank loans, thousands of banks went bankrupt and were forced to close down. Factories closed, leading to unemployment, which further aggravated the crises. The US banking system collapsed.
(v) Large-scale unemployment Farm could not sell their harvests, businesses collapsed. As a result, large scale unemployment occurred.
I hope it is helped you
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hyy...
here is ur answer....
The Great Depression begin around 1929 and lasted till the maid 1930s. during this period, most of the countries of the world experience to catastrophic devising production, employment, income and trade.
FACTORS RESPONSIBLE FOR DEPRESSION
▪ agricultural product production remainder problems this decrease the prices of Agricultural Products. this worsened the situation pushed down for the price of Agricultural product even further.
▪ at that time, many countries finance to their investments through the nose they got from the USA. American capitalist stopped follows to European countries. in Europe, it lead to failure of some major banks and collapse of currencies like Sterling.
▪ The US was severely affected by the Great Depression as the banks and cut domestic lending and called back loans. farms could not sell their harvests, households where between at business collapsed. ultimately, the US banking system collapsed because the bank we are unable to recover investment collect loans and repay depositors. the US attempted to protect its economy in the dark depression by doubling the import duties which hit the World Trade badly.
hope it helps
thanks...
here is ur answer....
The Great Depression begin around 1929 and lasted till the maid 1930s. during this period, most of the countries of the world experience to catastrophic devising production, employment, income and trade.
FACTORS RESPONSIBLE FOR DEPRESSION
▪ agricultural product production remainder problems this decrease the prices of Agricultural Products. this worsened the situation pushed down for the price of Agricultural product even further.
▪ at that time, many countries finance to their investments through the nose they got from the USA. American capitalist stopped follows to European countries. in Europe, it lead to failure of some major banks and collapse of currencies like Sterling.
▪ The US was severely affected by the Great Depression as the banks and cut domestic lending and called back loans. farms could not sell their harvests, households where between at business collapsed. ultimately, the US banking system collapsed because the bank we are unable to recover investment collect loans and repay depositors. the US attempted to protect its economy in the dark depression by doubling the import duties which hit the World Trade badly.
hope it helps
thanks...
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