History, asked by dony9622, 10 months ago

What is meant by great depression. Write its causes

Answers

Answered by kartikeya24
1
Here your answer mate
The Great Depression was the greatest and longest economic recession in modern world history. It began with the U.S. stock market crash of 1929 and did not completely end until 1946 after World War II. Economists and historians often cite the Great Depression as the most catastrophic economic event of the 20th century. During the short depression that lasted from 1920 to 1921, known as the Forgotten Depression, the U.S. stock market fell by nearly 50%, and corporate profits declined over 90%. However, the U.S. economy enjoyed robust growth during the rest of the decade spurring much of the "roaring '20s." Loose money supply and high levels of margin trading by investors helped to fuel an unprecedented increase in asset prices. This was a period when the American public discovered the stock market and dove in head first. Speculative frenzies affected both the real estate markets and on the New York Stock Exchange (NYSE).  The lead-up to October 1929 saw equity prices rise to all-time high multiples of more than 30 times earnings, and the benchmark Dow Jones Industrial Average increased 500% in just five years
The NYSE bubble burst violently on October 24, 1929, a day that came to be known as Black Thursday. The following week brought Black Monday (October 28) and Black Tuesday (October 29). The Dow Jones Industrial Index fell more than 20% over those two days. The stock market would eventually fall almost 90% from its 1929 peak.Ripples from the crash spread across the Atlantic Ocean to Europe triggering other financial crises such as the collapse of the Boden-Kredit Anstalt, Austria’s most important bank. In 1931, the economic calamity hit both continents in full force.

And now the causes -----
Top 5 Causes of the Great Depression – Economic Domino Effect

The Roaring 20's. Before the world entered into an economic decline, the performance of the stock market was well above par, and the industrial output more profitable than it had ever been. ...Ensuing Global Crisis. ...The Stock Market Crash. ...The Dust Bowl. ...The Smoot-Hawley Tariff Act.

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Answered by ItzIshu
4

It began after the stock market crash of October 1929, which sent Wall Street into a panic and wiped out millions of investors. Over the next several years, consumer spending and investment dropped, causing steep declines in industrial output and employment as failing companies laid off workers.

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