The Great Depression

1964 WordsMay 11, 20168 Pages
The Great Depression was a worldwide economic drop that lasted from 1929 to 1939. It was both the longest and most severe depression to be experienced in the Western world. Although the Depression first started in America, it spread to other country in the globe and resulted in a decline in net output, a severe unemployment rate, and a deflation in almost every country of the globe. But this didn’t just affect the economy of the world but it also affected the social and cultural aspects of the country especially the United States, where the Great Depression ranks only second to the Civil War as the gravest crisis in American history. The timing and severity of the Great Depression varied among the different countries. The Depression was particularly long and severe in the United States and Europe; it was milder in Japan and much of Latin America. Perhaps not surprisingly, the worst depression ever experienced stemmed from a multitude of causes. Declines in consumer demand, financial panics, and misguided government policies caused economic output to fall in the United States (Christina D. Romer). During this time the gold standard (which was a monetary system in which the standard economic unit was a fixed amount of gold) was linked to nearly all the countries of the world in a network of fixed currency exchange rates, this played a key role in the fall of America and other countries. The recovery from the Great Depression was urged by the abandonment of the gold

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