A BRIEF Look at the Global Economic Depression

“The Great Depression”Beginning in 1929 and

lasting into World War II

theGlobal Economic Depression

“The Great Depression”Causes & Results

Causes of the Depression of the 1930s

1. World economy was heavily influenced by US loans and trade during & after WWI.

In the 1920s, the US economy boomed …but

• industry & agriculture overproduced as European nations rebounded after WWI which caused prices to decline & unemployment to increase

• demand decreased for consumer goods (gap between rich and poor in the US)

2. the American stock market “crashed” & businesses & banks began to fail

• 3. Demands for payments by the US on international loans and reparations destabilized European economies.

The Results of the Great Depression

1. Banks failed . . . – Austria’s national bank

went bankrupt– All German banks

closed for a month– Over 2000 banks failed

in the US2. Agricultural and Industrial production dropped

3. Unemployment increased and wages dropped

– In US and Germany unemployment reached 30%

– In Britain 2.8 million were unemployed

4. Global Trade slowed– Value of exports from Latin

America dropped 50%– Southeast Asian rubber

exports dropped over 50%– Japan’s total exports

dropped 50%