Question

What happened during global depression?

Hint:

The Great Depression had lasting global impacts, with many countries suffering from economic contraction, high unemployment, and a collapse of international trade.

Answer 1

The global depression, also known as the Great Depression, was an economic downturn that began in the late 1920s and lasted through the 1930s. It was triggered by the stock market crash of 1929 in the United States, which led to widespread economic difficulties around the world. The effects of the global depression were felt across nations and industries, leading to:

Step 1: Economic Contraction.
There was a severe contraction in industrial production and trade. Many businesses failed, banks collapsed, and unemployment rates soared to unprecedented levels. The global economy experienced a sharp decline in economic activity.

Step 2: Widespread Unemployment.
Unemployment rates surged, leading to poverty and social unrest. Millions of workers, especially in industrialized nations, lost their jobs as businesses closed down. This further deepened the economic crisis.

Step 3: Decline in International Trade.
Global trade plummeted as countries raised tariffs and restricted imports in an attempt to protect their domestic industries. This policy, known as protectionism, exacerbated the economic slump.

Step 4: Government Interventions.
Governments responded with various policies, such as public works programs and financial reforms. In the U.S., President Franklin D. Roosevelt's New Deal aimed to revive the economy through government intervention and social programs.