What were the effects of the great depression?

April 08, 2011

Posted by susanne

( 0 ratings )

Hi Sp33dY13,
The Depression became a worldwide business downturn of the 1930's that affected almost all countries.

• International commerce declined quickly.
• There was a sharp reduction in tax revenues, profits and personal incomes.
• It affected both countries that exported raw materials and industrialized countries.
• It led to a sharp decrease in world trade as each country tried to protect their own industries and products by raising tariffs on imports.
• Governments reduced their spending, which led to decreased consumer demand.
• Construction came to a standstill in many nations.
• World Trade collapsed with trade in 1939 still below the 1929 level.
• In Germany, weak economic conditions led to the rise to power of Adolf Hitler.
• In countries such as the United States and Britain, the government intervened which ultimately resulted in the creation of welfare systems.
• Thousands of investors lost large sums of money and several were wiped out, losing everything.
• Banks, stores, and factories were closed and left millions of people jobless, penniless, and homeless.

For more details on the Great Depression, you can go here .

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