Table 1 shows the dates of the downturn and upturn in economic activity in a number of countries. Table 2 shows the peak-to-trough percentage decline in annual industrial production for countries for which such data are available.
Great Britain struggled with low growth and recession during most of the second half of the s. Britain did not slip into severe depression, however, until early , and its peak-to-trough decline in industrial production was roughly one-third that of the United States.
France also experienced a relatively short downturn in the early s. The French recovery in and , however, was short-lived. French industrial production and prices both fell substantially between and The decline in German industrial production was roughly equal to that in the United States. A number of countries in Latin America fell into depression in late and early , slightly before the U.
While some less-developed countries experienced severe depressions, others, such as Argentina and Brazil , experienced comparatively mild downturns. Japan also experienced a mild depression, which began relatively late and ended relatively early.
The general price deflation evident in the United States was also present in other countries. Virtually every industrialized country endured declines in wholesale prices of 30 percent or more between and Because of the greater flexibility of the Japanese price structure, deflation in Japan was unusually rapid in and This rapid deflation may have helped to keep the decline in Japanese production relatively mild.
The prices of primary commodities traded in world markets declined even more dramatically during this period. For example, the prices of coffee, cotton, silk, and rubber were reduced by roughly half just between September and December As a result, the terms of trade declined precipitously for producers of primary commodities.
Output grew rapidly in the mids: Output had fallen so deeply in the early years of the s, however, that it remained substantially below its long-run trend path throughout this period. In —38 the United States suffered another severe downturn, but after mid the American economy grew even more rapidly than in the mids.
Recovery in the rest of the world varied greatly. The British economy stopped declining soon after Great Britain abandoned the gold standard in September , although genuine recovery did not begin until the end of The economies of a number of Latin American countries began to strengthen in late and early Germany and Japan both began to recover in the fall of Canada and many smaller European countries started to revive at about the same time as the United States, early in On the other hand, France, which experienced severe depression later than most countries, did not firmly enter the recovery phase until We welcome suggested improvements to any of our articles.
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Next page Causes of the decline. Learn More in these related Britannica articles: In October , only months after Hoover took office, the stock market crashed, the average value of 50 leading stocks falling by almost half in two months. Despite occasional rallies, the slide persisted until , when stock averages were barely a fourth…. France at the end of the s had apparently recovered its prewar stability, prosperity, and self-confidence.
For a time it even seemed immune to the economic crisis that spread through Europe beginning in ; France went serenely on behind its…. With its economy so heavily dependent on natural resource extraction, Canada was especially hard hit by the Great Depression that followed the crash of the U. On March 4, the Democrat, Franklin D.
Roosevelt, was inaugurated as the new president of the United States and the crisis slowly began to improve. Great Depression - Soup Kitchen. Causes of the Great Depression: What was the Causes of the Great Depression? Industries boomed which led to the s Economic Boom. It was an era of modernism, excitement, new ideas and it was the age of the automobile. People felt invincible and became overconfident believing that the prosperous period would never end.
Causes of the Great Depression Fact 2: The irrational exuberance of the Roaring Twenties led to the rise of Consumerism in 's America and people were encouraged to acquire new product in ever-increasing amounts through mass advertising in the newspapers and via the radio. Causes of the Great Depression Fact 3: Causes - Easy Credit: Stock Brokers promoted the idea of "Buying on Margin" - encouraging enthusiastic investors to buy stocks with money loaned from the stock broker.
Nearly 4 million Americans engaged in heavy speculation, gambling on the Stock Market. Causes of the Great Depression Fact 4: Causes of the Great Depression Fact 5: Causes - Wall Street Crash: Overconfident Americans believed the Stock Market was also invincible. Stock brokers began to make Margin Calls and there was widespread panic-selling of all stocks.
Causes of the Great Depression Fact 6: Causes - The Banks: When the Wall Street Crash came small banks lost money and defaulted on their loans. There were runs on banks who did not have the assets to respond to the withdrawal requests of their customers.
Small banks were forced to close. Banks that did survive stopped lending money, making less credit available and the economy fell into recession. Causes of the Great Depression Fact 7: Over 20, companies and business went bankrupt and closed. The high levels of debt and the Wall Street crash led to the ruin of ordinary Americans who lost their life savings, their homes and then their jobs.
Causes - Lack of Credit: Banks were reluctant to make any new loans in the financial climate. The lack of credit meant that people were unable to recover from the economic bust.
Shareholders and investors lost millions of dollars. The Great Depression had begun. 7. THE GREAT CRASH: “BLACK TUESDAY” The day the stock market crashed, October 29, became known as “Black Tuesday.” During the s many people dreamed of getting rich, so they invested heavily in the stock market.
The Great Depression chapter of this High School U.S. History Homework Help course helps students complete their Great Depression history homework and earn better grades. This homework help resource uses simple and fun videos that are about five minutes long.
The underlying causes of the Great Depression were a perfect storm of bad news. #1. Agricultural overproduction. During the s technological innovations enabled farms to produce more and more crop for less time and labor. Improved homework resources designed to support a variety of curriculum subjects and standards. A new, third level of content, designed specially to meet the advanced needs of the sophisticated scholar.
Which were the main causes of the Great Depression? 1) Which were the main causes of the Great Depression? 2) Why did the Great Depression last so long? Indications: • To answer these questions, please start with our textbook information and then use at least one more reputable source for your research. The Great Depression ended with the start of World War II. The wartime economy put many people back to work and filled factories to capacity. Legacy The Great Depression left a lasting legacy on the United States. The New Deal laws significantly increased the role of the government in people's everyday lives.