What Is the Great DepressionWritten by dipen
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It was the period of 1930 when the world economic downfall occurred just before World War II. Though different parts of the world started getting affected with it in different periods, but 1929 is considered as the main year and time when most of the gigantic economies were struck through the Great depression. It is basically the worst an economy can reach and is considered black age. It is considered as the worst period of economy as far as 20th century was concerned. 4th September, 1929 in United States was the date, when share market crashed and immediately spread like forest fire throughout the world. Famously called as Black Tuesday, the great depression certainly cannot be forgotten. Most of the countries were struck through never before happened event.
Outcomes of the Great Depression
As far as outcomes are concerned, there is no match in the negative influence that it created over numerous economies. From most advanced to third world countries, each one experienced the most terrible economic period of their history. Tax, the prime source of income for most of the governments along with revenues and rates were all in the lower side. unemployment level crossed over 25% in United States, which was the worst condition ever. But it was not the worst, since in some of the nations it crossed 33% mark. All those countries, where economy heavily relied on larger industries were affected badly. The Great Depression did not stop here and construction process was almost stopped in whole world, making the sudden stop in any sorts of development. Since the prices were falling rapidly even farmers were up to extreme losses. Lowest cost of production and raising crops failed to make any revenues, since crops price went down by 60%.
Causes of the Great Depression
When it comes to major reasons of the Great Depression during 1929, biggest mistakes made during creation of structural policies. Some of the biggest and worst events that caused the Great Depression were few most renowned banks and stock market crashing suddenly. Some of the leading economies as that of Great Britain and United State are believed to be the reason why this economic phenomenon occurred. Though economist still do not agree over a single reason of the Great Depression, as several factors altogether turns a normal recession into dangerous situations like that.
The actual recovery process started among few countries by mid 1935. The effects were almost over once World War II started. Though World War II is believed to be the most destructive war happened ever, but one of the most positive results of this war was overcoming the Great Depression by world economy. Millions spent over war throughout the world by governments is also considered as one of the prime reason of quick recovery.