Economic Depression of the World 1929
The Great Depression has two meanings. One is the horrendous debacle of 1929-33 during which unemployment rose from 3 to 25 percent as the nation’s output fell over 25 percent and prices over 30 percent, in what also has been called the Great Contraction. A second meaning has the Great Depression as the entire decade of the thirties, the anxieties and apprehensions for which John Steinbeck’s The Grapes of Wrath is a metaphor. Much has been written about the unprecedented drop in economic activity in the Great Contraction, with questions about its causes and the reasons for its protracted decline especially prominent. The amount of scholarship devoted to these issues dwarfs that dealing with the recovery. But there indeed was a recovery, though long, tortuous, and uneven. In fact, it was well over twice as long as the contraction.
1.In Economic terms, a decline in trade and general prosperity is called Depression
2. The Great Depression of 1929-34 was worldwide, starting with an agricultural recession followed by financial panic and collapse, known as the Wall Street Crash (Oct. 1929) in the USA.
3. The effects on the USA were catastrophic: by 1933 almost 14 million people were out of work and American President Hoover's efforts failed to make an impression on the crisis.
4. Nobody was surprised when the Republicans lost the presidential election of Nov. 1932. The new Democrat President, Franklin D. Roosevelt, introduced policies known as the New Deal to try and put the country on the road to recovery.
5. The Great Depression is turn affected financial institutions and money markets in other parts of the world and caused a run on the pound in the UK. The result was a decline in internal consumption and exports in industrialized countries, factory closures, and massive unemployment.