The Great Depression and Unemployment: Discussion Questions

1271 Words5 Pages
Principles of Macroeconomics 1 ________________________________________________________________________ Q. 2: The Great Depression The Great Depression started in 1930 and lasted until 1939. It can be regarded as the worst depression the world has ever seen in the history. Spread across various nations, the Great Depression badly hampered each and every aspect of the economic, business, political, and social life. The most affected regions due to this economic slump were North America, Europe, and other industrialized Western countries. Among various other reasons, economists, researchers, and historians cite the 'Black Tuesday (October 29, 1929)' as the biggest cause of the Great Depression. It was the day on which the stock market crashed. A massive number of individuals, business corporations, and banking companies had invested huge amounts in stocks. In order to survive from heavy loss, everyone hurried to sell its stocks, but there were no buyers. The banks went bankrupt and further increased panic among individuals and businesses. In order to safeguard their remaining money, these individuals and businesses rushed to withdraw their deposits from their bank accounts. These heavy withdrawals further caused various commercial banks to shut down their operations due to bankruptcy. Another economic and social factor which contributed in making the Great Depression more severe was a significant decline in household purchasing across the world. In fear of further loss of

More about The Great Depression and Unemployment: Discussion Questions

Open Document