Question

How did great depression affect the world economy?

Answer 1

Hint: The Great Depression was a global economic crisis that started in 1929 and ended in 1939. It was the longest and most extreme depression the modern Western world has ever seen.

Complete answer:
Both rich and poor countries were devastated by the Great Depression. Personal wages, tax revenue, earnings, and rates all decreased, while foreign trade fell by more than half. Unemployment in the United States has risen to 23%, with rates as high as 33% in some nations.

Despite its origins in the United States, the Great Depression resulted in sharp drops in productivity, high unemployment, and significant deflation in almost every country on the planet.

Its social and cultural consequences were no less devastating, especially in the United States, where the Great Depression was the country's worst adversity since the Civil War.

The Great Depression occurred at different times and in different ways in different countries. In the United States and Europe, the Depression was especially long and severe; in Japan and most of Latin America, it was milder.

The global economy's worst crisis in history was caused by a variety of factors, which is perhaps unsurprising.

Consumer demand declines, market panics, and misplaced government policy both contributed to a drop in economic growth in the United States, whilst the gold standard, which bound virtually all of the world's countries in a network of fixed currency exchange rates, played a key role in spreading the American slump to other nations.

The abandonment of the gold standard and the subsequent monetary growth were key factors in the rebound from the Great Depression.

The Great Depression had a massive economic effect, resulting in both intense human misery and significant changes in economic policy.

Note: In the summer of 1929, the Great Depression erupted in the United States as a normal contraction. However, the decline got even stronger in late 1929 and lasted until early 1933. Real production and rates all plummeted.

The Great Depression of 1929 wreaked havoc on the American economy. A third in all banks went bankrupt. Unemployment has risen to 25%, and homelessness has intensified.