Great Depression (oct 24, 1929 – mar 1, 1933)
Description:
The Great Depression was the worst economic decline in industrialised history and had a ripple-effect throughout the world’s economies.
Causes
1. In the 1920s, the US economy expanded rapidly and doubled the nation’s wealth in a short space of time. The stock market expanded as well because everyone was investing all their savings into stocks. By 1929 though, consumer debt was through the roof, causing production to decline which then led to unemployment rates to steadily increase, wages to be at an all-time low, and there were so many bank loans that couldn't be paid, meaning the banks were losing money.
2. Due to the reasons above, the stock prices kept increasing until they were significantly higher than their actual value. A record number of 12.9 million overpriced shares were traded on the 24th of October 1929 (also known as Black Thursday). Millions of shares were rendered worthless and plunged the world into the Great Depression.
Effects
1. Because of the Great Depression, USA's unemployment rose to 25%, homelessness increased drastically, house prices plummeted by 30% and 65% of their international trade collapsed.
2. Because USA's economy was interlinked with most of the world's economies, everyone suffered in the Great Depression, especially Germany. Countries like France and Belgium seriously needed the war reparations from Germany and took what was left of their money. This increased Germany’s poverty and the government now appeared to be very weak.
Added to timeline:
Causes of WW2
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