2. I would like to thank my subject teacher SunitaMamand my parents
for helping me in makingthis presentation. My parents helped me in
formatting the matter of thepresentation. I collected theinformation
fromthe internet and fromsome books.My other gratitude I would like
to convey to my school whichsuggest me to make this presentation and
to have marks for addingit intoexamination.
3. • THE GREAT DEPRESSION
– THE COMING OF DEPRESSION
– THE BEGINNING
– CAUSES OF GREAT DEPRESSION
Banks failure.
Decline of international trade.
Overproduction of agricultural goods.
Over production of industrial goods.
Decline of farming industry.
Unequal distribution of wealth.
– RESULTS OF GREAT DEPRESSION
Nations economy crashed.
Farmers struggled a lot.
Rising price resulted in declining of consumers.
Gap between rich and poor widened.
Banks failed.
Gross National Product decreased, Unemployment increased.
Hardship, homelessness increased.
– WORLD WIDE EFFECTS
AUSTRALIA
EAST ASIA
FRANCE
GERMANY
INDIA
LATIN AMERICA
USA
• GREAT DEPRESSION IN USA
– CAUSES OF GREAT DEPRESSION IN USA
– EFFECTS OF GREAT DEPRESSION ON USA
• GREAT DEPRESSION IN INDIA
– EVENTS RELATED TO GREAT DEPRESSION
Declaration of independence
Salt satyagraha
4. THE GREAT DEPRESSION
The Great Depression was a severe worldwide
economic depression in the decade preceding
World War II . The timing of the Great
Depression varied across nations, but in most
countries it started in 1930 and lasted until
the late 1930s or middle 1940s. It was the
longest, deepest, and most widespread
depression of the 20th century. In the 21st
century, the Great Depression is commonly used
as an example of how far the world's economy
can decline. The depression originated in the
U.S., after the fall in stock prices that began
around September 4, 1929, and became
worldwide news with the stock market crash of
October 29, 1929.
5. THE COMING OF DEPRESSION
During the 1920s, many Americans enjoyed what seemed like an endless era of prosperity.
But in 1929, the stock market crashed.
World wars loans.
Declining trade.
Production fell, unemployment rose, and the economy went into a period of dramatic decline.
Years after the Great Depression began, periodic contraction was seen as part of the business
cycle.
Economic historians usually attribute the start of the Great Depression to the sudden
devastating collapse of US stock market prices on October 29, 1929, known as Black
Tuesday.
By mid-1930, interest rates had dropped to low levels, but expected deflation and the
continuing reluctance of people to borrow meant that consumer spending and investment were
depressed.
By May 1930, automobile sales had declined to below the levels of 1928. Prices in general
began to decline, although wages held steady in 1930; but then a deflationary spiral started in
1931.
Conditions were worse in farming areas, where commodity prices plunged, and in mining and
logging areas, where unemployment was high and there were few other jobs.
6. THE BEGINNING
The economic contraction that began with the Great
Crash triggered the most severe economic downturn
in the nation’s history—the Great Depression. In
the beginning in mid-1930, a severe drought
ravaged the agricultural heartland of the US. The
Great Depression lasted from 1929 until the United
States entered World War II in 1941. The stock
market crash of 1929 did not cause the Great
Depression. Rather, both the Great Crash and the
Depression were the result of deep underlying
problems with the country’s economy.
7. Together, government and business spent more in the
first half of 1930 than in the corresponding period of
the previous year. Consumers, many of whom had
suffered severe losses in the stock market the
previous year, cut back their expenditures
8. CAUSES OF GREAT DEPRESSION
Banks failure.
Decline of
international
trade.
Overproduction of
agricultural goods.
Over
production of
industrial
goods.
Decline of
farming
industry.
Unequal
distribution of
wealth.
13. Overproduction of Industrial Goods
oTechnological advances change how
Americans live andwork
o In the Roaring 1920s:
• Consumer demand is very high
• Machine produce quality products
quickly
• Unrestricted capitalism
o By 1929, supply greatly exceeds
demand!
14.
15. The Great Depression had devastating effects in
countries rich and poor . Personal income , tax,
revenue, profits and prices dropped, while
international trade plunged by more than 50%.
Unemployment in the U.S. rose to 25%, and in some
countries rose as high as 33%. Cities all around the
world were hit hard, especially those dependent on
heavy industry. Construction was virtually halted in
many Countries. Farming and rural areas suffered
as crop prices fell by approximately 60%. Facing
plummeting demand with few alternate sources of
jobs, areas dependent on primary sector industries
such as cash cropping, mining and logging suffered
16. Banks failed.
Nations economy crashed.
Farmers struggled a lot.
Rising price resulted in declining of consumers.
Gap between rich and poor widened.
Gross National Product decreased, Unemployment increased.
Hardship, homelessness increased.
17. Housing
Railroads
Textiles
Mining
Steel
Agriculture
Automobiles
Consumer goods
As the 1920s advanced, serious problems threatened
the economy while
Important industries struggled, including :
18.
19.
20. GAP BETWEEN RICH & POOR
‡ The gap between rich and poor
widened
‡ The wealthiest 1% saw their
income rise 75%
‡ The rest of the population saw
an increase of only 9%
‡ More than 70% of American
families earned less than
$2500 per year
21. FINANCIAL COLLAPSE
◊ After the crash, many Americans
panicked and withdrewtheir money
frombanks
◊ Banks had investedin the Stock
Market and lost money
◊ In 1929- 600 banks fail
◊ By 1933 – 11,000 of the 25,000 banks
nationwide had collapsed
22. † Between 1928-
1932, the U.S.
Gross National
Product (GNP) – the
total output of a
nation’s goods &
services – fell nearly
50% from $104
billion to $59 billion
† 90,000 businesses
went bankrupt
23. HARDSHIPS, HOMELESSNESS INCREASED
The Great Depression brought
hardship, homelessness, and
hunger to millions
Across the country, people lost
their jobs, and their homes
Some built makeshifts shacks
out of scrap material
25. ¤ Australia's extreme dependence on
agricultural and industrial exports meant it
was one of the hardest-hit countries in the
Western world
¤ Falling export demand and commodity
prices placed massive downward pressures
on wages
¤ Further, unemployment reached a record
high of almost 32% in 1932
¤ After 1932, an increase in wool and meat
prices led to a gradual recovery
26. East Asia
The Great Depression in East Asia was
of minor impact
The Japanese economy shrank by 8%
1929–31
The invasion and subjugation of
Manchuria into a Japanese puppet-
state in September 1931, thus providing
Japan with raw materials and energy,
the Japanese economy was able to
recover by 1932 and continued to grow.
27. FRANCE
The Depression began to affect France from
about 1931
France's relatively high degree of self-
sufficiency meant the damage was
considerably less than in nations like
Germany
Hardship and unemployment were high
enough to lead to rioting and the rise of the
socialist Popular Front.
28. Germany
† Germany's Weimar Republic was hit hard by the
depression, as American loansto help rebuild the German
economystopped.
† Unemployment soared, especiallyin larger cities, andthe
political systemveered toward extremism.
† Hitler's Nazi Partycame to power in January1933. In 1934
the economywas still not balancedenoughfor Germanyto
workon its own.
29. INDIA
‡ Decline of international
trade resulted the
obtaining of low
revenue.
‡ Indian gold reserves
sold off.
‡ Uninhibited increase in
land rent.
‡ Value of the
agricultural produce
came down to alarming
levels.
30. LATIN AMERICA
Because of highlevelsof UnitedStates investment in Latin
Americaneconomies,they wereseverelydamagedby the
Depression
Chile, Boliviaand Peruwere particularlybadlyaffected
One resultof theDepressioninthisarea was theriseof fascist
movements.
33. The Great Depression began in August of 1929, when the
United States economy first went into an economic recession .
Although the country spent two months with declining GDP, it was
not until the Wall Street Crash of October, 1929 that the
effects of a declining economy were felt, and a major worldwide
economic downturn ensued. The market crash marked the
beginning of a decade of high unemployment, poverty, low profits,
deflation , plunging farm incomes, and lost opportunities for
economic growth and personal advancement. include numerous
factors, especially high consumer debt, ill-regulated markets that
permitted overoptimistic loans by banks and investors, and the
lack of high- growth new industries, all interacting to create a
downward economic spiral of reduced spending, falling confidence,
and lowered production. Industries that suffered the most
included construction, agriculture as dust-bowl conditions
persisted in the agricultural heartland, shipping, mining, and
logging as well as durable goods like automobiles and appliances
34.
35. EFFECTS OF GREAT DEPRESION
ON USA
13 million people became unemployed. Many people belonged to
families with no regular full-time wage earner. Industrial
production fell by nearly 45% between 1929 and 1932.
Homebuilding dropped by 80% between the years 1929 and
1932. About 11,000 of the US’ banks had failed. U.S. GDP
fell around 30%, the stock market lost almost 90% of its
value. The unemployment rate fell down to about 3%. In
1933, 25% of all workers and 37% of all nonfarm workers
were unemployed. Over one million families lost their farms
between 1930 and 1934. Corporate profits had dropped from
$10 billion in 1929 to $1 billion in 1932. Between 1929 and
1932, the income of the average American family was
reduced by 40%. About nine million savings accounts had been
wiped out between 1930 and 1933. Over 273,000 families
had been evicted from their homes in There were two million
homeless people migrating around the country. Over 60% of
39. DECLARATION OF INDEPENDENCE
On December 31, 1929, at a session of the Indian
National Congress held on the banks of the river Ravi
in Lahore, Jawaharlal Nehru unfurled the tricolor
and declared that complete independence from British
rule would, henceforth, be the goal of the Congress.
This was a remarkable shift of policy for the Indian
National Congress as it had, till now, been a staunch
advocate of dominion status. This declaration also
triggered the Civil Disobedience Movement , which
commenced with the Salt Satyagraha.
40. The Salt Satyagraha formed the highpoint of the
Civil Disobedience Movement. While the heavy salt
tax was always a burden to the poor peasant, the
widespread poverty during the Great Depression
made it even more difficult for the commoner to
procure salt. In response to this tax, between
March 12, 1930 and April 5, 1930, Mahatma Gandhi
marched with over 30,000 followers to the coastal
town of Dandi in Gujarat , where they illegally
manufactured salt and defied the Government
monopoly on salt. Subsequently, similar satyagrahas
were organized at Dharasana and Vedaranyam. The
Government responded with a massive roundup, but
