Mamu Ally
Feb 4
Explain impact of Great economic depression with 7 points?
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Feb 4
1. Massive unemployment: The Great Depression resulted in widespread unemployment, with millions of people losing their jobs. This had a devastating impact on individuals and families, leading to poverty, homelessness, and a decline in living standards.
2. Bank failures and financial collapse: Many banks failed during the Great Depression, causing people to lose their savings and businesses to go bankrupt. This led to a severe contraction in credit and a lack of investment, further exacerbating the economic downturn.
3. Decline in international trade: The global economy was severely affected by the Great Depression, as countries implemented protectionist measures and imposed high tariffs on imports. This led to a significant decline in international trade, further deepening the economic crisis.
4. Stock market crash: The Great Depression was triggered by the stock market crash of 1929, which wiped out billions of dollars in investments. This sudden loss of wealth had a profound psychological impact on investors and consumers, leading to a decrease in consumer spending and business investment.
5. Deflation and falling prices: During the Great Depression, there was a widespread deflationary spiral, with prices falling rapidly. While this may seem beneficial, it actually worsened the economic situation as it discouraged spending and investment, leading to further job losses and business closures.
6. Government intervention and New Deal policies: The Great Depression prompted governments to intervene in the economy through various policies and programs. In the United States, President Franklin D. Roosevelt implemented the New Deal, which aimed to stimulate economic recovery through public works projects, financial reforms, and social welfare programs.
7. Social and political unrest: The Great Depression had significant social and political consequences. High unemployment and poverty levels led to social unrest, with protests and strikes becoming more common. This period also saw the rise of extremist political movements, such as fascism and communism, as people sought alternative solutions to the economic crisis.
2. Bank failures and financial collapse: Many banks failed during the Great Depression, causing people to lose their savings and businesses to go bankrupt. This led to a severe contraction in credit and a lack of investment, further exacerbating the economic downturn.
3. Decline in international trade: The global economy was severely affected by the Great Depression, as countries implemented protectionist measures and imposed high tariffs on imports. This led to a significant decline in international trade, further deepening the economic crisis.
4. Stock market crash: The Great Depression was triggered by the stock market crash of 1929, which wiped out billions of dollars in investments. This sudden loss of wealth had a profound psychological impact on investors and consumers, leading to a decrease in consumer spending and business investment.
5. Deflation and falling prices: During the Great Depression, there was a widespread deflationary spiral, with prices falling rapidly. While this may seem beneficial, it actually worsened the economic situation as it discouraged spending and investment, leading to further job losses and business closures.
6. Government intervention and New Deal policies: The Great Depression prompted governments to intervene in the economy through various policies and programs. In the United States, President Franklin D. Roosevelt implemented the New Deal, which aimed to stimulate economic recovery through public works projects, financial reforms, and social welfare programs.
7. Social and political unrest: The Great Depression had significant social and political consequences. High unemployment and poverty levels led to social unrest, with protests and strikes becoming more common. This period also saw the rise of extremist political movements, such as fascism and communism, as people sought alternative solutions to the economic crisis.
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