Describe the effect of the Great Depression on the world? Who was the worst affected by this depression? (2024)

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Describe the effect of the Great Depression on the world? Who was the worst affected by this depression? ›

Solution:The Great Depression began around 1929 and lasted till the mid-1930s. During this period: There were steep declines in production, employment, incomes and trade. Agricultural regions and communities were worst affected due to the fall of agricultural prices and ruin of urban centres.

The country's most vulnerable populations, such as children, the elderly, and those subject to discrimination, like African Americans, were the hardest hit. Most white Americans felt entitled to what few jobs were available, leaving African Americans unable to find work, even in the jobs once considered their domain.

Although it originated in the United States, the Great Depression caused drastic declines in output, severe unemployment, and acute deflation in almost every country of the world.

Real GDP fell 29% from 1929 to 1933. The unemployment rate reached a peak of 25% in 1933. Consumer prices fell 25%; wholesale prices plummeted 32%. Some 7,000 banks, nearly a third of the banking system, failed between 1930 and 1933.

Unemployment soared. Families suffered. Marriage rates fell. The contraction began in the United States and spread around the globe.

Agricultural regions and communities were worst affected due to the fall of agricultural prices and ruin of urban centres. Unemployment created further poverty in the society and people were living in destitute conditions.

The poor were hit the hardest. By 1932, Harlem had an unemployment rate of 50 percent and property owned or managed by blacks fell from 30 percent to 5 percent in 1935. Farmers in the Midwest were doubly hit by economic downturns and the Dust Bowl. The urban low wage workers were hit the hardest.

Though no two people had the same understanding of the Depression, everyone felt challenged and changed by the experience. By 1932, three years after the initial crash, near thirty million Americans had lost their source of income, from unemployment or loss of a family breadwinner.

It's safe to say, however, that the wealthy who had their money well-diversified probably survived the best, certainly better than the 25% of the working Americans who were out of work. Short-sellers in the stock market had the best opportunity of profiting from falling stock prices.

Devastating effects were seen in both rich and poor countries with falling personal income, prices, tax revenues, and profits. International trade fell by more than 50%, unemployment in the U.S. rose to 23% and in some countries rose as high as 33%.

What were 3 major causes and effects of the Great Depression? ›

Among the suggested causes of the Great Depression are: the stock market crash of 1929; the collapse of world trade due to the Smoot-Hawley Tariff; government policies; bank failures and panics; and the collapse of the money supply.

Town families could not produce their own food. Many city dwellers often went hungry. Sometimes there were soup kitchens in larger cities that provided free meals to the poor. Winters were an especially hard time since many families had no money to buy coal to heat their houses.

The Great Depression was an economic crisis that began with the stock market crash of 1929 and lasted for nearly a decade. The causes of the Great Depression included the stock market crash of 1929, bank failures, and a drought that lasted throughout the 1930s.

The Depression had a powerful impact on family life. It forced couples to delay marriage and drove the birthrate below the replacement level for the first time in American history. The divorce rate fell, for the simple reason that many couples could not afford to maintain separate households or pay legal fees.

The Great Depression was the worst economic crisis in modern history, lasting from 1929 until the beginning of World War II in 1939. The causes of the Great Depression included slowing consumer demand, mounting consumer debt, decreased industrial production and the rapid and reckless expansion of the U.S. stock market.

Even for those who managed to keep their farms, there was little market for their crops. Unemployed workers had less money to spend on food, and when they did purchase goods, economic conditions had driven prices so low that farmers earned very little in the way of profit.

The poor were hit the hardest. By 1932, Harlem had an unemployment rate of 50 percent and property owned or managed by blacks fell from 30 percent to 5 percent in 1935. Farmers in the Midwest were doubly hit by economic downturns and the Dust Bowl. The urban low wage workers were hit the hardest.

Many children didn't have enough food to eat, a car to ride in, a big enough house, or enough clothes. Many had to quit school to work in a factory or on a farm. Today, in the United States, children are required to attend school starting with elementary school, then middle school, then high school.