Factors for great depression
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Although a common belief is that the Great Depression was triggered by the 1929 crash of the stock market, the stock market in 1929 had reached record fundamental valuations in spite of deteriorating economic conditions such as rising unemployment, overproduction (excess capacity), underconsumption and high debt.
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The great depresssion began around the end of 1929 and lasted almost till 1939 when the second world war began.During this decade there was a worls wide economic declined triggered by a decline in demand and fall in prices.The decline in demand led to closure of factories production which is turn meant further decline in the purchasing the power of the peoples leading to further decline in demand.The cyclical effect caused massive unemployment and decline of real income of ordinary people as well as government across the world.It initially began with a stock market collapse in the US,but before long effected almost every country.
as many as 25% americans were unemployed and nearly 33% in many other countries.As many factories closed down and trade declined cities became centers of decline.this is turn as caused by collapse of prices(upto 60%) for agriculture produce causing pauperisation of millions of farmers and stopping cultivation. this was the longest and most severe economic decline faced by modern economytill today.It had devastibg social consequences sharply increasing poverty,desolation,homelessness etc.
as many as 25% americans were unemployed and nearly 33% in many other countries.As many factories closed down and trade declined cities became centers of decline.this is turn as caused by collapse of prices(upto 60%) for agriculture produce causing pauperisation of millions of farmers and stopping cultivation. this was the longest and most severe economic decline faced by modern economytill today.It had devastibg social consequences sharply increasing poverty,desolation,homelessness etc.
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