why is the period from 1929 till the mid 1920 is referred to as the Great Depression explain any three reason
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Answer:
The economy crisis which begun in 1929 in USA and lasted till the mid-1930s was known as the great depression. The depression was caused by the combination of several factors:
i) Over production in agriculture-
Agricultural over production remained a problem. This was made worse by falling agricultural prices. As prices slumped and agricultural income declined, farmers tried to expand production and bring a larger volume of produce to the market to maintain their overall income. This worsened the glut in the market.
ii)Shortage of loan-
In the mid-1920s, many countries financed their investments through loans from the US. While it was often extremely easy to raise loans in the US situation was going good, US overseas lender s panicked at the first sign of trouble. Countries that depended crucially on the US loans now faced an acute crisis.
iii)Collapse of banking outcomes-
The withdrawal of US loans affected much of the rest of the world, though in different ways. In Europe, it led to the failure of some major banks and the collapse of currencies such as the British Pound Sterling.