Question

hello frnds urgent question please don't give meaningless answers...write the factors and reasons of great depression in making of a global world...?

Answer 1

1. there was an immense industrial expansion due to the increased demand of goods supplied to the army during the period of the 1st world war. after the war, the demand for these goods suddenly dropped and so there was no demand in many industries.
2. 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 there overall income. this worsened the situation by pushing down the prices of farm produce further.
3. many countries financed their investments through loans from USA. while it was often very easy to raise loans in the USA during the boom period, lenders in USA panicked at the 1st sign of trouble.countries that depended on US loans faced an acute crisis.
4. multiple effect with the fall in prices and the prospect of the depression i.e. banks in USA slashed domestic lending and some stopped bank loans, 1000s of bank left bankrupt and were forced to close down. factories closed leading to unemployment which further aggravated the crisis. the US banking system collapsed.
5. farm could not sell their harvests, businesses collapsed. as a result large scale unemployment occured.