Question

History Question

5-6 sentences

What were the causes and consequences of the Great Depression on the world?

Answer 1

Answer

The following are the causes and consequences of the Great Depression in the world -

1) Stock Market Crash - The Great Depression was triggered by a huge stock market crash. The market overheated and crashed in October 1929, which resulted in many traders losing money, many of them were unable to return the money they borrowed. The sudden collapse of the US stock market led to the spread of depression on an international scale.

2) Government Failure - While dealing with the Great Depression, the US government's took actions which were slow, small and also hesitant. The government leaders who were supposed to take swift and decisive actions failed. Apart from this failure, they also did not act to inject funds into the economy

3) Financial Sector Failures - The failure of the stock market left the traders in heavy debts which seemed impossible to be repaid. This default added to the length and depth of the Depression across the financial and banking sector.

4) Consumption Contraction - The Great Depression resulted in placing over 40 percent of US families under the poverty line, which was a huge change. The demands for consumer goods and the ability to pay debts fell sharply.

5) Unemployment - The financial and economic downturn significantly impacted job opportunities and employment. The unemployment numbers in the US were so high that thousands of jobless men could be seen on streets, roaming in the search for jobs.

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