What were the causes of world-wide economic depression? What were its effects on the world politics?
Answers
Explanation:
CAUSES
A monumental decline in spending that generated a decline in production
Banking panics and bank failures in the U.S. and elsewhere in 1930-33
Decision-making by the U.S. Federal Reserve that caused declines in the money supply
Excessive stock-market speculation in the U.S. that resulted in the Great Crash of 1929
Maintenance of the international gold standard
The Smoot-Hawley Tariff Act and other protectionist trade policies
OUTCOMES
Development of Keynesian economics
End of the international gold standard by the late 1930s
Expanded influence of labour unions and organized labour through legislation such as the Wagner Act in the U.S.
Implementation of the New Deal in the U.S. and welfare-state policies internationally
Increased government oversight of financial markets by the U.S. Securities and Exchange Commission and other new regulatory agencies
Precipitous decline in standards of living around the world
Up to 25% unemployment in industrialized countries in the early 1930s
Answer:
The effects of economic depression are as follows:
Shaping of Indian politics in the 1920s,
Agricultural prices began to fall from 1926
Demands for agricultural goods fell and exports declined,
Peasants found it difficult to sell their harvests,
Peasants found it difficult to pay their revenue,
Country was in turmoil