So how are you guys .In today’s article we will read about the Great Depression. How did the Great Depression come in and what are the impacts of great depression.All we will read in this article. So without wasting of any time let us know about the great deprssion.
Know about great depression
The economic depression of the year 1930 is considered to be one of the world’s biggest events. It is also called Tissa’s recession. This incident ended the economic beliefs of classical economists all over the world. Prior to this recession, the world’s industrialists had the notion that “fulfillment creates its own demand” Therefore, all people used to concentrate on production only, these people were not concerned about the demand for this production. Due to this ideology, industrialists paid attention to increase production, not on the sale. That’s why the whole world was hit by the Great Depression.
In the year 1929, this economic event started from America, took the whole world to its grip. Because of this, the bank had gone bankrupt, the stock market had gone down due to which millions of dollars of shareholders were submerged, the companies stopped production, the people were becoming unemployed and the people in debt were killing themselves.
You are reading about great depression.
When did the Great Depression begin?
Truly there was not a single reason for the Great Depression of 1930 but the lack of demand in the market, the failure of the bank and the huge decline in the stock market were considered to be the main reasons in which the shareholders had been cleared of $ 40 billion.
From my point of view, due to the Great Depression, in the 1920s, after the First World War, America has been hiding in wide-scale over-production. In fact, after World War I, the hope of development in people rose, due to which there was an industrial revolution in the United States, the rural and rural industries displaced for good jobs were produced on a wide scale, but demand of all these things compared to production. Not increased because of which companies’ sales were reduced, stocks increased, banks stopped lending, banks became poor and stock market Dropped and then things went deteriorating.
You are reading about great depression.
The process of recession is as follows.
Firstly the demand in the market decreased, thereby increasing the stock of companies, production decreased, jobs went up, people stopped repaying loans from banks, which reduced the power to lend to the banks, stopped getting loans and people whose money The banks had deposited in them, they also started extracting it, with the combined effect of the banking structure was scorched. About 9000 banks went bankrupt People’s capital ended due to non-insured deposits in the bank. The banks remaining, they stopped the transaction of money. People reduced their expenditure and after the demand for goods and services in the market decreased, the companies reduced the production as the companies started shutting down the jobs started to go This caused the Great Depression in the whole world including America.
Effects of economic recession.
1. Unemployment in the US rose from 1.5 million to 1.3 million. Europe’s European debt came due to economic depression in Europe. The biggest consequence of this Great Depressance was that countries such as the United States got a big fund to strengthen its economy. Military expansion in various countries, including the US, not only opened the doors of jobs, but the production of arms also resulted in economies.
2. The Great Depression of 1930 affected the whole world. Australia’s economy was dependent on exports of agriculture and industrial products, so it had the most impact on it. In Canada, industrial production declined by 58% and national income fell 55%.
3. In 1931, due to economic slowdown, Britain had to abandon the Golden Rule. The government stopped exporting gold. The British government adopted the cheap currency rate, which led to a reduction in interest rates, to provide loans to different industries at cheap rates, which encouraged industrial development.