Interest rates dropped to low levels by mid-1930, but expected deflation and the continuing reluctance of people to borrow meant that consumer spending and investment remained low. In addition, beginning in the mid-1930s, a severe drought ravaged the agricultural heartland of the U.S. On the other hand, consumers, many of whom suffered severe losses in the stock market the previous year, cut their expenditures by 10%. Īt the beginning, governments and businesses spent more in the first half of 1930 than in the corresponding period of the previous year. The stock market turned upward in early 1930, with the Dow returning to 294 (pre-depression levels) in April 1930, before steadily declining for years, to a low of 41 in 1932. Įven after the Wall Street Crash of 1929, where the Dow Jones Industrial Average dropped from 381 to 198 over the course of two months, optimism persisted for some time. However, some dispute this conclusion and see the stock crash as a symptom, rather than a cause, of the Great Depression. stock market prices, starting on October 24, 1929. Įconomic historians usually consider the catalyst of the Great Depression to be the sudden devastating collapse of U.S.
Facing plummeting demand with few alternative sources of jobs, areas dependent on primary sector industries such as mining and logging suffered the most. Farming communities and rural areas suffered as crop prices fell by about 60%. Construction was virtually halted in many countries. Cities around the world were hit hard, especially those dependent on heavy industry. rose to 23% and in some countries rose as high as 33%. Personal income, tax revenue, profits and prices dropped, while international trade fell by more than 50%. The Great Depression had devastating effects in both rich and poor countries. However, in many countries, the negative effects of the Great Depression lasted until the beginning of World War II. Some economies started to recover by the mid-1930s. By comparison, worldwide GDP fell by less than 1% from 2008 to 2009 during the Great Recession. Between 19, worldwide gross domestic product (GDP) fell by an estimated 15%. The Great Depression started in the United States after a major fall in stock prices that began around September 4, 1929, and became worldwide news with the stock market crash of October 29, 1929, which was known as Black Tuesday.
The Great Depression is commonly used as an example of how intensely the global economy can decline. It was the longest, deepest, and most widespread depression of the 20th century. The timing of the Great Depression varied across the world in most countries, it started in 1929 and lasted until the late 1930s. The Great Depression was a severe worldwide economic depression that took place mostly during the 1930s, beginning in the United States. The Dow Jones Industrial Average, 1928–1930
0 kommentar(er)
