These are the following facts about The Great Depression which can inform you more. What pop up in your mind when we talk about depression? Sad? Anxious? Hopeless? Or Empty? Several decades ago a serious worldwide economic depression happened. This “Great Depression “was the longest, deepest, and most widespread depression of the 20th century. Finally, to gain more information, let’s check the details facts below.
Facts about the Great Depression 1: The Cause Based on Keynesians
Keynesians believe that the Great Depression was caused by high unemployment and the economy reached equilibrium at low levels of economic activity.
Facts about the Great Depression 2: The Cause Based on Monetarists
Monetarists believe that the Great Depression was the result of monetary contraction. The consequence of poor policy-making by the American Federal Reserve System and continued crisis in the banking system. It was started with the stock market crash and followed by another recession.
Facts about the Great Depression 3: The Cause Based on Marxist
Karl Max argued that capitalism created recession and depression because there was free-market capitalism. In free-market capitalism, there were no restrictions on accumulations of capital other than the market itself. The capitalism contributed in creating unbalanced accumulations of wealth. The crisis was lead by those over-accumulations of capital.
Facts about the Great Depression 4: 9 Factors of the Great Depression
Irving Fisher stated 9 factors that created the crisis. The chain of events are Debt liquidation and distress selling. Contraction of the money supply as bank loans are paid off. In addition, a fall in the level of asset prices. Above all, a still greater fall in the net worth of business, precipitating bankruptcies. Finally, a fall in profits, a reduction in output, in trade and in employment. Ultimately, Pessimism and loss of confidence, Hoarding of money and A fall in nominal interest rates and a rise in deflation adjusted interest rates.
Facts about the Great Depression 5: Banking Act 1935
Banking Act 1935 was believed as one contributing policy that reversed reflation. It effectively came to help raising reserve requirements. Finally, causing a monetary contraction that help to thwart the recovery.
Facts about the Great Depression 6: World War II
Some economists believe the World War II helped the recovery of the Great Depression. In fact, the spending of government helped in stimulating the economies and reducing unemployment.
Facts about the Great Depression 7: Effects
Both of the rich and poor country were under the influence of the destroying effects of the Great Depression. Personal income, tax revenue, profits and prices dropped, while international trade plunged by more than 50%. Moreover, unemployment in the U.S. rose to 25% and in some countries rose as high as 33%.
Facts about the Great Depression 8: Australia
One of the hardest-hit countries by the Great Depression was Australia. In 1932, the jobless reached 29%. Accordingly, falling export demand and commodity prices placed massive downward pressures on wages.
Facts about the Great Depression 9: Canada
Canada was affected by two devastating effects from the global economic downturn and the Dust Bowl. In fact, in 1933, unemployment reached 27%.
Facts about the Great Depression 10: Netherlands
During seven years, the after-effects of the Stock Market Crash of 1929 in the U.S made Netherlands suffered a deep and exceptionally long depression. The long depression came to an end on 1937.
Perhaps those interesting facts about the Great Depression will enrich your source of reading.