The Great Depression had devastating effects in both rich and poor countries. Personal income, tax revenue, profits and prices dropped, while international trade fell by more than 50%. Unemployment in the U.S. rose to 23% and in some countries rose as high as 33%.
How did the Great Depression affect the average person?
More important was the impact that it had on people’s lives: the Depression brought hardship, homelessness, and hunger to millions. THE DEPRESSION IN THE CITIES In cities across the country, people lost their jobs, were evicted from their homes and ended up in the streets.
Why was the Great Depression a failure?
The monetary contraction, as well as the financial chaos associated with the failure of large numbers of banks, caused the economy to collapse. Less money and increased borrowing costs reduced spending on goods and services, which caused firms to cut back on production, cut prices and lay off workers.
Who is to blame for the Great Depression?
As the Depression worsened in the 1930s, many blamed President Herbert Hoover…
Who was most affected by the Great Depression?
The Depression hit hardest those nations that were most deeply indebted to the United States , i.e., Germany and Great Britain . In Germany , unemployment rose sharply beginning in late 1929 and by early 1932 it had reached 6 million workers, or 25 percent of the work force.
Can the Great Depression happen again?
Could a Great Depression happen again? Possibly, but it would take a repeat of the bipartisan and devastatingly foolish policies of the 1920s and ‘ 30s to bring it about. For the most part, economists now know that the stock market did not cause the 1929 crash.
What happened to farmers during the Great Depression?
Farmers who had borrowed money to expand during the boom couldn’t pay their debts. As farms became less valuable, land prices fell, too, and farms were often worth less than their owners owed to the bank. Farmers across the country lost their farms as banks foreclosed on mortgages. Farming communities suffered, too.
What did families do during the Great Depression?
With the Great Depression, many families lost their farms and migrated to urban areas in search of work and aid from President Franklin D. Roosevelt’s New Deal government programs. With record unemployment, children competed for jobs with their elders in an effort to make a contribution to their families.