The 1930s Global Economic Depression

The 1930s Global Economic Depression was a global economic depression that started in 1930 and lasted until the late 1930s.

• Context:
  • It contained the The U.S. 1930s Economic Depression, which spawned the U.S. New Deal Programs.
  • …
• Counter-Example(s):
  • The Great Recession of the Late-2000s.
• See: Global Recession, Wall Street Crash of 1929, Bank Run, Heavy Industry, Farming, The Second Industrial Revolution.

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References

2014a

• (Wikipedia, 2014) ⇒ http://en.wikipedia.org/wiki/Depression_%28economics%29#Great_Depression Retrieved:2014-4-29.
  • The best-known depression was the Great Depression, which affected most national economies in the world throughout the 1930s. This depression is generally considered to have begun with the Wall Street Crash of 1929, and the crisis quickly spread to other national economies. Between 1929 and 1933, the gross national product of the United States decreased by 33% while the rate of unemployment increased to 25% (with industrial unemployment alone rising to approximately 35% – U.S. employment was still over 25% agricultural).^{[citation needed]} The probable causes of the Great Depression include the loose money policies of the Federal Reserve during the latter 1920s and the consequent misallocation of capital based on easy and inexpensive credit,^{[citation needed]} although this is still hotly debated.
    A long-term effect of the Great Depression was the departure of every major currency from the gold standard, although the initial impetus for this was World War II. See: Bretton Woods Accord In any case, the world economy has simply outgrown the capacity of additions to the world gold supply to accommodate the increase in world population and increased trade without periodic, painful revaluations of any currencies tied to gold.

2014b

• (Wikipedia, 2014) ⇒ http://en.wikipedia.org/wiki/Great_Depression Retrieved:2014-4-29.
  • The Great Depression was a severe worldwide economic depression in the decade preceding World War II. The timing of the Great Depression varied across nations, but in most countries it started in 1930 and lasted until the late 1930s or middle 1940s. It was the longest, deepest, and most widespread depression of the 20th century. In the 21st century, the Great Depression is commonly used as an example of how far the world's economy can decline. The depression originated in the U.S., after the fall in stock prices that began around September 4, 1929, and became worldwide news with the stock market crash of October 29, 1929 (known as Black Tuesday). The Great Depression had devastating effects in countries rich and poor. Personal income, tax revenue, profits and prices dropped, while international trade plunged by more than 50%. Unemployment in the U.S. rose to 25%, and in some countries rose as high as 33%. Cities all around the world were hit hard, especially those dependent on heavy industry. Construction was virtually halted in many countries. Farming and rural areas suffered as crop prices fell by approximately 60%. Facing plummeting demand with few alternate sources of jobs, areas dependent on primary sector industries such as cash cropping, mining and logging suffered the most. Some economies started to recover by the mid-1930s. In many countries, the negative effects of the Great Depression lasted until after the end of World War II.

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