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ACKNOWLEDGEMENTI would like to thank my subject
teacher Sunita Mam and my parents for helping me in making this
presentation. My parents helped me in formatting the matter of the
presentation. I collected the information from the internet and
from some books.My other gratitude I would like to convey to my school
which suggest me to make this presentation and to have marks for
adding it into examination.
• THE GREAT DEPRESSION– THE COMING OF DEPRESSION– THE BEGINNING– CAUSES OF GREAT DEPRESSION
Banks failure. Decline of international trade. Overproduction of agricultural goods. Over production of industrial goods. Decline of farming industry. Unequal distribution of wealth.
– RESULTS OF GREAT DEPRESSION Nations economy crashed. Farmers struggled a lot. Rising price resulted in declining of consumers. Gap between rich and poor widened. Banks failed. Gross National Product decreased, Unemployment increased. Hardship, homelessness increased.
– WORLD WIDE EFFECTS AUSTRALIA EAST ASIA FRANCE GERMANY INDIA LATIN AMERICA USA
• GREAT DEPRESSION IN USA– CAUSES OF GREAT DEPRESSION IN USA– EFFECTS OF GREAT DEPRESSION ON USA
• GREAT DEPRESSION IN INDIA– EVENTS RELATED TO GREAT DEPRESSION
Declaration of independence Salt satyagraha
CONTENT
THE GREAT DEPRESSION
The Great Depression was a severe worldwide economic depression in the decade preceding
World War II . The timing of the Great Depression varied across nations, but in most countries it
started in 1930 and lasted until the late 1930s or middle 1940s. It was the longest, deepest, and
most widespread depression of the 20th century. In the 21st century, the Great Depression is
commonly used as an example of how far the world's economy can decline. The depression
originated in the U.S., after the fall in stock prices that began around September 4, 1929, and
became worldwide news with the stock market crash of October 29, 1929.
THE COMING OF DEPRESSIONDuring the 1920s, many Americans enjoyed what seemed like an endless era of prosperity. But in 1929, the stock market crashed.
World wars loans.
Declining trade.
Production fell, unemployment rose, and the economy went into a period of dramatic decline.
Years after the Great Depression began, periodic contraction was seen as part of the business cycle.Economic historians usually attribute the start of the Great Depression to the sudden devastating collapse of US stock market prices on October 29, 1929, known as Black Tuesday.By mid-1930, interest rates had dropped to low levels, but expected deflation and the continuing reluctance of people to borrow meant that consumer spending and investment were depressed.By May 1930, automobile sales had declined to below the levels of 1928. Prices in general began to decline, although wages held steady in 1930; but then a deflationary spiral started in 1931. Conditions were worse in farming areas, where commodity prices plunged, and in mining and logging areas, where unemployment was high and there were few other jobs.
THE BEGINNINGThe economic contraction that
began with the Great Crash triggered the most severe economic downturn in the nation’s history—the Great
Depression. In the beginning in mid-1930, a severe drought
ravaged the agricultural heartland of the US. The Great Depression lasted from 1929
until the United States entered World War II in 1941. The stock market crash of 1929 did not cause the Great Depression. Rather, both the Great Crash and the Depression were the
result of deep underlying problems with the country’s
economy.
Together, government and business spent more in the first half of 1930 than in the corresponding period of the previous year. Consumers, many of whom had suffered severe losses in the stock market the previous year, cut back their expenditures
CAUSES OF GREAT DEPRESSION
Banks failure.
Decline of international
trade.
Overproduction of
agricultural goods.Over
production of industrial
goods.
Decline of farming industry.
Unequal distribution of wealth.
INTERNATIONAL TRADE DECLINED
European demand for goods declinesFactories producing morePersonal income , tax, revenue, profits
and prices dropped.International trade plunged by more
than 50%.Interest rates dropped to low levels
BANKING INDUSTRY COLLAPSED
Families lose savings in crash; banks have little cash left on reserve.
Banks lose money loaned to ‘buy on the margin’ (even people who did not invest lost out!).
People default on mortgages due to unemployment.
European nations could not repay their debts.
America would not forgive the loans.
Banks begin to fail.
Overproduction of Agricultural Goods
American farmers had prospered during World War I
Use profits to buy machines to produce more
After World War I, demand drops surplus!
Huge supply + Low demand = Low prices
FARMING INDUSTRY DECLINE
Farmers borrowed from bank to buy machinery
Foreclosed on mortgages and other debts
Banks closed due to defaults and stock market
Between 1929 and 1933 farmers’ income 50%
Farmers in dept.One million families lose
their farms by 1934Many people too poor to
buy goods to lift economy
Overproduction of Industrial Goods
oTechnological advances change how Americans live and work
o In the Roaring 1920s:• Consumer demand is
very high• Machine produce quality
products quickly• Unrestricted capitalism
oBy 1929, supply greatly exceeds demand!
UNEQUAL DISTRIBUTION OF WEALTH
• Gap between the rich and poor widens in the 1920s
• By 1929 some Americans have more wealth
• Wages increased• The income of rich increased• Wealth does not trickle down• Consumers in debt ; Cannot afford
products
EFFECTS OF GREAT DEPRESSION
The Great Depression had devastating effects in countries rich and poor . Personal income ,
tax, revenue, profits and prices dropped, while international trade plunged by more
than 50%. Unemployment in the U.S. rose to 25%, and in some countries rose as high as 33%. Cities all around the world were hit
hard, especially those dependent on heavy industry. Construction was virtually halted in
many Countries. Farming and rural areas suffered as crop prices fell by approximately 60%. Facing plummeting demand with few
alternate sources of jobs, areas dependent on primary sector industries such as cash
cropping, mining and logging suffered the most. Some economies started to recover by
the mid-1930s. In many countries, the negative effects of the Great Depression lasted until after the end of World War II.
RESULTS OF GREAT DEPRESSION
Banks failed.
Nations economy crashed.
Farmers struggled a lot.
Rising price resulted in declining of consumers.
Gap between rich and poor widened.
Gross National Product decreased, Unemployment increased.
Hardship, homelessness increased.
THE NATION’S SICK ECONOMY
Housing Railroads Textiles Mining Steel Agriculture Automobiles Consumer goods
As the 1920s advanced, serious problems threatened the economy while
Important industries struggled, including :
FARMERS STRUGGLE
◊ No industry suffered as much as agriculture
◊ During World War I European demand for American crops soared
◊ After the war demand plummeted
◊ Farmers increased production sending prices further downward
CONSUMER SPENDING DOWN
‼ By the late 1920s, American consumers were buying less
‼ Rising prices, stagnant wages and overbuying on credit were to blame
‼ Most people did not have the money to buy the flood of goods factories produced
GAP BETWEEN RICH & POOR
‡ The gap between rich and poor widened
‡ The wealthiest 1% saw their income rise 75%
‡ The rest of the population saw an increase of only 9%
‡ More than 70% of American families earned less than $2500 per year
FINANCIAL COLLAPSE◊ After the crash,
many Americans panicked and withdrew their money from banks
◊ Banks had invested in the Stock Market and lost money
◊ In 1929- 600 banks fail
◊ By 1933 – 11,000 of the 25,000 banks nationwide had collapsed
GNP DROPS, UNEMPLOYMENT SOARS
† Between 1928-1932, the U.S. Gross National Product (GNP) – the total output of a nation’s goods & services – fell nearly 50% from $104 billion to $59 billion
† 90,000 businesses went bankrupt
† Unemployment leaped from 3% in 1929 to 25% in 1933
HARDSHIPS, HOMELESSNESS INCREASED
The Great Depression brought hardship, homelessness, and hunger to millions
Across the country, people lost their jobs, and their homes
Some built makeshifts shacks out of scrap material
¤ Australia's extreme dependence on agricultural and industrial exports meant it was one of the hardest-hit countries in the Western world
¤ Falling export demand and commodity prices placed massive downward pressures on wages
¤ Further, unemployment reached a record high of almost 32% in 1932
¤ After 1932, an increase in wool and meat prices led to a gradual recovery
AUSTRALIA
East Asia
The Great Depression in East
Asia was of minor impact
The Japanese economy shrank
by 8% 1929–31
The invasion and subjugation of
Manchuria into a Japanese
puppet-state in September
1931, thus providing Japan with
raw materials and energy, the
Japanese economy was able to
recover by 1932 and continued
to grow.
FRANCE The Depression began to
affect France from about
1931
France's relatively high
degree of self-sufficiency
meant the damage was
considerably less than in
nations like Germany
Hardship and
unemployment were high
enough to lead to rioting
and the rise of the
socialist Popular Front.
Germany† Germany's Weimar Republic
was hit hard by the depression, as American loans to help rebuild the German economy stopped.
† Unemployment soared, especially in larger cities, and the political system veered toward extremism.
† Hitler's Nazi Party came to power in January 1933. In 1934 the economy was still not balanced enough for Germany to work on its own.
INDIA‡ Decline of
international trade resulted the obtaining of low revenue.
‡ Indian gold reserves sold off.
‡ Uninhibited increase in land rent.
‡ Value of the agricultural produce came down to alarming levels.
‡ Heavy losses resulted the farmers to sell off their valuables in order to pay the land rent and other taxes.
‡ This resulted the farmers in dept.
LATIN AMERICA
Because of high levels of United States
investment in Latin American
economies, they were severely
damaged by the Depression
Chile, Bolivia and Peru were
particularly badly affected
One result of the Depression in this
area was the rise of fascist movements.
USA§ About 13 million
people became unemployed
§ In the early 1930s, more people emigrated from the United States than immigrated to it
§ From 1929 to 1932, about 5,000 banks went out of business.
§ Many people suffered from diseases.
§ US GDP and stock market declined.
GREAT DEPRESSION IN USA The Great Depression began in August of 1929, when the
United States economy first went into an economic recession . Although the country spent two months with declining GDP, it was not until the Wall Street Crash of October, 1929 that the effects of a declining economy were felt, and a major worldwide economic downturn ensued. The market crash marked the beginning of a decade of high unemployment, poverty, low profits, deflation , plunging farm incomes, and
lost opportunities for economic growth and personal advancement. include numerous factors, especially high
consumer debt, ill-regulated markets that permitted overoptimistic loans by banks and investors, and the lack of
high- growth new industries, all interacting to create a downward economic spiral of reduced spending, falling
confidence, and lowered production. Industries that suffered the most included construction, agriculture as dust-bowl
conditions persisted in the agricultural heartland, shipping, mining, and logging as well as durable goods like
automobiles and appliances that could be postponed. The Depression caused major political changes in America. The
Depression also resulted in an increase of emigration of people to other countries for the first time in American
history.
CAUSES OF GREAT DEPRESSION IN USA
Banks began to fail in October 1930 when farmers defaulted on loans.
There was no federal deposit insurance during that time as bank
failures were considered quite common. This caused the money
supply to shrink and the economy to contract and a significant decrease
in aggregate investment. The decreased money supply further
aggravated price deflation, putting further pressure on already
struggling businesses High interest rates needed to be maintained, in
order to attract international investors who bought foreign assets with gold. However, the high interest
also inhibited domestic business borrowing. All this resulted in the
introduction of the Great Depression.
EFFECTS OF GREAT DEPRESION ON USA
13 million people became unemployed. Many people belonged to families with no regular full-time wage
earner. Industrial production fell by nearly 45% between 1929 and 1932. Homebuilding dropped by
80% between the years 1929 and 1932. About 11,000 of the US’ banks had failed. U.S. GDP fell around
30%, the stock market lost almost 90% of its value. The unemployment rate fell down to about 3%. In 1933, 25% of all workers and 37% of all nonfarm
workers were unemployed. Over one million families lost their farms between 1930 and 1934. Corporate profits had dropped from $10 billion in 1929 to $1
billion in 1932. Between 1929 and 1932, the income of the average American family was reduced by 40%. About nine million savings accounts had been wiped out between 1930 and 1933. Over 273,000 families
had been evicted from their homes in There were two million homeless people migrating around the
country. Over 60% of Americans were categorized as poor by the federal government in 1933. In the early
1930s, more people emigrated from the United States than immigrated to it. Many people became ill with
diseases such as tuberculosis.
GREAT DEPRESSION IN INDIA
The Great Depression of 1929 had a very severe impact on India, which was then under the rule of the British
Raj . The Government of British India adopted a protective trade policy which, though beneficial to the United Kingdom, caused great damage to the Indian economy. During the period 1929–1937, exports and
imports fell drastically crippling seaborne international trade. The railways and the agricultural
sector were the most affected. The international financial crisis combined with detrimental policies
adopted by the Government of India resulted in soaring prices of commodities. High prices along with
the stringent taxes prevalent in British India had a dreadful impact on most Indians. The discontent of
farmers manifested itself in rebellions and riots. The Salt Satyagraha of 1930 was None of the measures undertaken as a response to heavy taxation during
the Great Depression. The Great Depression and the economic policies of the Government of British India
worsened already deteriorating Indo-British relations. When the first general elections were held according
to the Government of India Act 1935 , anti-British feelings resulted in the pro-independence Indian
National Congress winning in most provinces with a very high percentage of the vote share.
DECLARATION OF INDEPENDENCE
On December 31, 1929, at a session of the Indian National Congress held on the banks of the river Ravi in Lahore, Jawaharlal Nehru unfurled the tricolor and declared that complete independence from British rule would, henceforth, be the goal of the Congress. This was a remarkable shift of policy for the Indian National Congress as it had, till now, been a staunch advocate of dominion status. This declaration also triggered the Civil Disobedience Movement , which commenced with the Salt Satyagraha.
SALT SATYAGRAHA The Salt Satyagraha formed the highpoint of
the Civil Disobedience Movement. While the heavy salt tax was always a burden to the poor
peasant, the widespread poverty during the Great Depression made it even more difficult for the commoner to procure salt. In response to this tax, between March 12, 1930 and April 5,
1930, Mahatma Gandhi marched with over 30,000 followers to the coastal town of Dandi in Gujarat , where they illegally manufactured salt and defied the Government monopoly on salt.
Subsequently, similar satyagrahas were organized at Dharasana and Vedaranyam. The
Government responded with a massive roundup, but by then, the march and the media
coverage had radically molded international opinion.
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