The Great Depression is said to be the most devastating time between the late 1920s through the late 1930s. Not only was The Great Depression was an economic slump in the United States, it also affected other countries, such as Europe, France, Germany and Australia. The recession that seems to plague every country in the world began in 1929 until 1939, making it the longest and biggest harsh depression to ever be involved in with the modern Western world. The years during the Great Depression was notably marked as one of the worst age of starvation and poverty in the twentieth century. So once the American economy slumped and the flow of American investment credits to Europe dried up, prosperity tended to collapse there as well.
This series of events led to far reaching consequences, ranging from the rise of Hitler and Nazi Germany to the creation of countries such as Czechoslovakia, Hungary, Austria, and Iraq. All of whom have had ethnic conflicts within the last thirty years. After WWI Europe as well as the world was completely decimated, every major military power in the world was forced into economic recession and almost entire generations were lost for most countries. France was a preverbal rubble yard having been the main event in most of WWI and counted 1.3 million dead. However they were not the only country with a death count as Russia had a counted 1.7 million killed in the war, Great Brittan had 908,000 killed, and Germany with 1.7 million soldiers killed in the war.
The Great Depression was a time of total despair. Years of economic downturn not only affected the United States but may European countries as well. Americans endured lost of fortunes, homes, jobs and personal tragedies. Very few alive today remember what it was like, and to the rest of us, it is just a piece of history that we can only imagine. The Great Depression reeked havoc on the stock market, banking, industries, and agriculture that led to massive unemployment, breadlines and fear that lasted over a decade.
There were many causes for the Depression; unequal distribution of money during the 1920’s was the main cause of the Depression. This unequal distribution happened on many different classes of people. The imbalance of money is what created such an unstable economy. The stock market was doing much worse than people thought during this period. This lead to the biggest stock market crash in our history.
Many of Bulgaria’s current economic problems can be traced to economic conditions at the start of its transition. Heavy reliance on CMEA markets devastated the country , more so than any other country. Compared to GDP, over 60% of its imports and exports were orientated to the CMEA market. COMECON’s collapsed devastated Bulgaria, causing large initial declines in GDP and increases in unemployment. This event necessitated the complete restructuring of the modes of production.
Finally, there were about twenty-five million dead in Western Europe. The Middle Ages became so depopulated that the economy changed. In the economy laborers demanded more pay, meanwhile changing their work status. All over was widespread poverty because of the merchants raising their prices heavily. In conclusion the virus that had raged its way through Europe was so deadly, virulent and lethal that victims were reported to go to bed healthy and died in their sleep.
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. Economic historians usually consider that the start of depression is the sudden collapse of US stock markets on October 29, also known as Black Tuesday. And among the problems involved in assesing the causes of depression none is more intractable than the responsibility to be assigned to the stock market crash.
There was a desperate shortage of food caused by World War One and many starved but perhaps the worst of all was the state of the Russian workforce. Many of the factories once owned by the tsar were destroyed. Businesses were hindered by government regulations on production and trade. Under the steely gaze of Lenin, Russia crumbled, but through fear and government intervention the communist state continued. Under Communism, housing and quality of life changed tremendously in Russia.
So, the stock market crash in the United States caused businesses to close, banks to fall, and many people to become unemployed, causing this twelve-year period of suffering to become known as ?The Great Depression?. As stated by Nelson Cary in his overview of the Great Depression, ?the core of the problem was the immense disparity between the country?s productive capacity and the ability of people to consume?. There were more introductions of new items in the United States than before, during, or after World War I. The Government had tremendous debt from this war. The economy suffered greatly during this time because of the immense deficits left from the war.
The Wall Street Crash and The Great Depression When the stock market collapsed on Wall Street on Tuesday, October 29, 1929, it sent financial markets worldwide into a tailspin with disastrous effects. The German economy was especially vulnerable since it was built out of foreign capital, mostly loans from America and was very dependent on foreign trade. When those loans suddenly came due and when the world market for German exports dried up, the well oiled German industrial machine quickly ground to a halt. As production levels fell, German workers were laid off. Along with this, banks failed throughout Germany.