The Great Depression (24 oct 1929 año – 1 ene 1939 año)

Descripción:

Causes:
1. The stock market crash of 1929, due to overinflated shares and other unaddressed issues within the stock market
2. The collapse of world trade due to Smoot-Hawley Tariff
3. Government policies
4. Bank failures and panics
5. The collapse of the money supply
Effects:
1. Factories were shut down due to lack of income
2. Farms and homes were lost to foreclosure
3. Mills and mines were abandoned due to being unable to pay labour workers
4. People went hungry and were starving as a result of being unable to afford food
5. Up to 25% of the labour force was unemployed, which translates to 12.83 million people
6. Prices and productivity fell to 1/3 of their 1929 levels
7. Lower incomes and wages as employers couldn’t afford prior rates
8. Other costs went down such as rent resulting in less money coming into households
9. This also led to moneys value going down so low that people were using it as fuel for a fire because it was cheaper than buying timber etc.
10. Farmers were losing their land, and income due to no one being able to purchase goods or services
11. The displacement of the ex-labour workers in America, caused families to migrate away from home and search for employment elsewhere
12. “Hoovervilles” or “shantytowns” sprung up across America built of scraps such as packing crates abandoned cars
13. Young people that were unable to be supported by families joined gangs and rode the train as hobos in search of employment
14. Due to drought and dust storms the effects of the Depressions were intensified. This led to families abandoning their farms and land and going to California in search of the “land of milk and honey”
15. In many countries, citizens were desperate to find a leader or leadership party that could save their dying economy. This desperation led to Hitler and the Nazi party rising to power in Germany

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