Essay on The Great Depression

Submitted By CAPNEMM
Words: 376
Pages: 2

The Great Depression

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The Great Depression was a severe worldwide economic depression in the decade before World War II. The timing of the Great Depression varied across nations. But it most countries is started in 1930 and lasted until the late 1930s or middle 1940s. It was the longest, deepest, and most widespread depression of the 20th century. The Great Depression is commonly used as an example of how far the world's economy can decline. The depression in the U.S. originated after the fall in stock prices that began around September 4th, 1929, and became worldwide news with the stock market crash on October 29th, 1929. The Great Depression had devastating effects in countries rich and poor. Personal income, tax revenue, profits and prices dropped, while international trade failed by more than 50%. The unemployment rate in the U.S. rose to 25%. People lost their jobs and only way of income. Cities all around the world were hit hard, especially those which were dependent on heavy industry. Construction was virtually stopped in many countries. Farming and rural areas suffered as crop prices fell by almost 60%. Facing plummeting demand with few alternate sources of jobs, areas dependent on primary sector industries such as cash cropping, mining, and logging suffered the most. There were multiple causes for the first downturn in 1929. These include the structural weaknesses and specific events that turned it into a major depression and the…