The Great Depression was a severe worldwide economic depression. The depression began in October 1929 and didn’t end until 1939. It had devastating effects on both rich and poor. Unemployment rose, all forms of money lost their value. It started because of the sudden devastating collapse of US stock market prices on October 29, known as Black Tuesday.
Where it started:
It started in Wall Street, America, where all the stock prices fell extremely fast.
All the investors who had invested in the stock market lost all their money.
Many banks were unable to pay their debts; by 1933, 11,000 of the United States' 25,000 banks had failed. The failure of so many banks, combined with a general and nationwide loss of confidence in the economy, led to much-reduced levels of spending and demand which affected production which leaded to the downward spiral, which no-one could get out of. The result of all this was a drastically falling output and a extreme rising of unemployment which had risen to 25-30% of the workforce.
Effects of the US depression spread:
As in other nations, Australia suffered years of high unemployment, poverty, low profits, deflation, plunging incomes, and lost opportunities for economic growth and personal advancement. Primary products such as wool and wheat, which suffered significantly from the collapse in international demand. Unemployment reached a record high of 32% in 1932, and gross domestic product declined by 10% between 1929 and 1931.
The Great Depression's impact on Australian society was devastating. Without work and a steady income many people lost their homes and were forced to live in makeshift dwellings with poor heating and sanitation. This quote is telling you want families had to do in order to survive during the great depression:
“People were forced into all sorts of tricks and expediencies to survive, all sorts of shabby and humiliating compromises. In thousands and thousands of homes fathers deserted the family and went on the, or perhaps took to drink. Grown sons sat in the kitchen day after day, playing cards, betting on horses