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essay the depression on 1920
economic effects of the great depression
economic effects of the great depression
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How was Australia affected by depression in 1920’s?
Australia was one of the countries deeply affected by the Depression.
This was due to the fact that Australia heavily depended on the imports, trade and investment intake from overseas. The economy was already unstable and was in trouble during the 1920's. The wealth of the economy was only based on the high prices of Australia's exports and primary products, a growing volume of exports and a continued stream of investments into Australia. Any serious reduction to the price and volume of exports and reduction of overseas loans would cause problems.
An indication of danger was Australia's large and rapidly increasing overseas interest bill. By the late 1920's, the prices of Australian's exports were also falling. With the continuation of the declining price, Australia would have a difficult struggle to pay for its imports and repayment of loans. Australia was affected so severely as its primary source of income was taken away. Employees in public works, building and construction lost their jobs, as loans were no longer being funded for these projects. This also reduced the demand for goods produced in other industries. Australia's workmen had a severe lost of jobs and wages.
How was the government responding and assisting the population?
“Susso”
Those who were unemployed were entitled to the application of the 'susso', a sustenance or dole payment.
A person seeking this assistance had to register and demonstrate that th...
Between 1900 and 1929, Canada had the world’s fastest growing economy with only a sharp but brief recession during world war one. The 1920’s had been a successful period of growth. The living standards were improving remarkably. Before the First World War, the American stock market was small and a relatively unimportant part of Canada’s economy. This suddenly changed bringing the onset of the great depression in the late 1920’s when the economy took a severe and devastating turn; affecting the lives of Canadians for nearly a decade.
During the late 1920s the United States was going through an economic depression that was caused by the failure of the stock market. When the stock market crashed, millions of people lost their savings, jobs and also their homes. About millions of people end up traveling across the country in order to find a job to help them to support their family. After becoming the president, Franklin D. Roosevelt want to help the country by stopping the depression and it too never occur again in the United States.
...riculture to industry, worldwide overproduction of crops after the war made this condition even worse. As there were excessive supply and little demand, the agricultural price levels dropped significantly and the farmers were facing the problem of low income. Together with the faulty credit system, the economy couldn’t maintain the sham-growing trend for a long time. The market system eventually collapsed in the end of 1929, leading to the Great Depression in the 1930’s.
Great Depression was one of the most severe economic situation the world had ever seen. It all started during late 1929 and lasted till 1939. Although, the origin of depression was United Sattes but with US Economy being highly correlated with global economy, the ill efffects were seen in the whole world with high unemployment, low production and deflation. Overall it was the most severe depression ever faced by western industrialized world. Stock Market Crashes, Bank Failures and a lot more, left the governments ineffective and this lead the global economy to what we call today- ‘’Great Depression’’.(Rockoff). As for the cause and what lead to Great Depression, the issue is still in debate among eminent economists, but the crux provides evidence that the worst ever depression ever expereinced by Global Economy stemed from multiple causes which are as follows:
Mass production due to Henry Ford’s idea of an assembly line increased the worker output of manufactured goods by 32 percent. Manufacturers figured that they’d make more profit if more goods were produced and sold. However, even with the installment plan, there were limits on how much a person was capable of buying. Eventually, people stopped buying as much as they did when buying on credit was a new concept. As the demand for goods went down, prices also decreased. Manufacturers had overproduced, so factories began laying off an abundant number of workers. As jobs were lost, people could not afford to pay for the goods that were bought through installment plans, and their items were repossessed. The unemployment rate increased by 25%, which meant even less spending in the economy. Along with the decline of industries, farmers’ incomes fell throughout the decade. Overproduction of crops and meat strained the prices for farm products to fall. President Calvin Coolidge refused to help solve farmers’ problems. As a result, farmers had to take out loans against their homes and land, but food prices still continued to fall. Farmers ended up in debt and their families, roughly a quarter of the United States population, struggled economically. As you can see, overproduction and underconsumption of consumer goods was an immense part of causing the Great
October 29th, 1929 marked the beginning of the Great Depression, a depression that forever changed the United States of America. The Stock Market collapse was unavoidable considering the lavish life style of the 1920’s. Some of the ominous signs leading up to the crash was that there was a high unemployment rate, automobile sales were down, and many farms were failing. Consumerism played a key role in the Stock Market Crash of 1929 because Americans speculated on the stocks hoping they would grow in their favor. They would invest in these stocks at a low rate which gave them a false sense of wealth causing them to invest in even more stocks at the same low rate. When they purchased these stocks at this low rate they never made enough money to pay it all back, therefore contributing to the crash of 1929. Also contributing to the crash was the over production of consumer goods. When companies began to mass produce goods they did not not need as many workers so they fired them. Even though there was an abundance of goods mass produced and at a cheap price because of that, so many people now had no jobs so the goods were not being purchased. Even though, from 1920 to 1929, consumerism and overproduction partially caused the Great Depression, the unequal distribution of wealth and income was the most significant catalyst.
Credit structure was another factor; farmers were indebt owing land mortgage and crop prices too low to ever help pay of the due. Small & large banks in trouble as in 1920’s customers defaulted on loans that suffered because of the market crash.
Unemployment plagued America throughout the 1930's. The stock market crash of 1929 changed the lives of Americans forever. This began the era that we know as The Great Depression. Within three years the low wages that Americans had been receiving just was not cutting it. Unemployment was reaching record numbers. It was 50 percent or more in many places. There simply were not enough jobs or money to go around. Depression was becoming a way of life. People were living out of their cars, cardboard boxes and moving in with relatives that were slightly luckier than they were.
The speculation and the resulting stock market crash acted as the trigger for the already unstable United States economy. Due to the maldistribution of wealth and the unstable economy of the 1920’s, the nation headed into a decade of trouble. In response to its economic difficulties, the United States set up even higher trade barriers with other nations, causing more trouble within the nation. Many of the working class lost their jobs, and since these people did not have savings, they were in big trouble. Unemployment grew to 13 million by 1932 as the country quickly spiraled into a catastrophe. The Great Depression had begun due to the maldistribution of wealth, a bad economy based on over confidence, and the irresponsible erratic of the “bull” stock market.
The Great Depression was a period, which seemed to go out of control. The crashing of the stock markets left most Canadians unemployed and in debt, prairie farmers suffered immensely with the inability to produce valuable crops, and the Canadian Government and World War II became influential factors in the ending of the Great Depression.
During the 1920's America experienced an increase like no other. With the Model T car, the assembly line, business skyrocketed. Thus, America's involvement in World War II did not begin with the attack on Pearl Harbor. Starting in October 1929, the Great Depression, the stock market crashed. It awed a country used to the excesses of the 1920's.
Such an event caused many problems in the country. The first problem had been that many people became unemployed due to the stock market crash. Many industries had too many products left over that was not being sold in the country in which lead to job layoffs since they didn’t have money to pay their workers. In the early days of the depression many employers including the government tried to give jobs to whoever was the head of the households. (Doc 5) Unemployment helped lead to another problem which was hunger. In document 2 families who were hungry had to live off of dandelions and blackberries. Also they had to stand on lines for cheap food. The American people desperation to have a decent meal that would satisfy their needs eventually led to them fishing food out o...
The depression mostly affected industrial countries such as USA and United Kingdom, and caused the increase in unemployment. Also, construction sector almost stopped, the price of agricultural products declined markable, and the farmers and rural people were affected adversely. The mining was also the most affected sector due to unexpected decline in demand.
Soldiers returning from the war expected jobs, but were faced with unemployment, inflation and strikes. Inflation had doubled the cost of living where wages had not and those fortunate to be employed still faced immense financial difficulty. Many people joined unions for better pay and working conditions, 1919 saw the most strikes at a staggering three hundred and six, people were angry and discontented. The 1920s were a time of crime, corruption and extreme poverty, yet by mid era difficult conditions began to improve. Foreign investors gained confidence in Canada and as a result new industries were developed, The twenties really did 'roar' and with this boom of change Canada underwent the transformation that was the gateway to the future.