The resulting loss of wealth led to sharp cutbacks in consumer spending. This loss of consumption, combined with the financial market chaos triggered by the bursting of the bubble, also led to a collapse in business investment.
S government to protect American companies in June The consequences of the Depression in the U.
S A large number of banks were closed There was deflation and a collapsed real estate prices The reduction of industrial production by 2 times Unemployment has risen to 12 million people Many farmers went bankrupt.
In the UK, the Great Depression helped to revive the economy and an influx of investment in the old industries France lost positions in global markets Germany as a result of depression came to power Italy initiated the establishment of fascism and other European countries also were significantly affected by this global crisis.
As a result, it can be said that the Great Depression, which began in the United States, has led to the Second World War, the results of which we all know.
During the drought, the soil dried up becoming dust and was blown away eastwards, mostly in large black clouds. On 14 Aprilknown as the "Black Sunday", there was one of the worst storms in the Dust Bowl, which caused extensive damage, and turned day into night. There were fourteen states affected by the drought.
Thus the farmers were forced to sell their lands without any profit catalyzed the great depression. States were to regulate the production, industrial relations. The aim was to restore the purchasing power of the population.
First of all, the government restored the banking system. An important measure to overcome the Great Depression was the organization of public works, organized by the Public Works Administration PWA and the administration of civil works. It was simultaneously involved more than 3 million people.
The work was focused on the construction of infrastructure and land development. Thus, the measures taken to overcome depression of proved effective and the U.
Some movies on Great Depression.Great Depression, in U.S. history, the severe economic crisis generally considered to have been precipitated by the U.S.
stock-market crash of Stock market crash. The Wall Street Crash of is often cited as the beginning of the Great Depression. It began on October 24, , and was the most devastating stock market crash in the history of the United States.
Much of the stock market crash can be attributed to exuberance and false expectations. Publication date: 1. Wage Inequality. Over the last 30 years, wage inequality in the United States has increased substantially, with the overall level of inequality now approaching the extreme level that prevailed prior to the Great Depression.
This was the most dramatic employment contraction (by far) of any recession since the Great Depression. By comparison, in the deep recession that began in . The Great Recession is a term that represents the sharp decline in economic activity during the late s, which is considered the most significant downturn since the Great Depression.
In , the stock market crash spelled an end to the prosperity of the s. The stock market crash marked the beginning of a period of economic hard times known as the Great Depression which lasted through the s.