These slides are based on the Great Depression and Communist in Russia.

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Presenter: Miss NS SIMELANE
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2. Between 1929 and 1939, there was drastic global economic
depression known as the Great Depression. It started as a result
of a sharp decline in American stock prices.
BY Pierre Siklos, 2001
WHAT WAS A GREAT
DEPRESSION?
The Great depression was known as the severe worldwide
economic depression that begun after a major fall in stock prices
in the United States. It caused the loss of millions of investors.

3. Among a third and half of all U.S. financial institutions perished, ripping
out millions of Americans' lifetime savings. Banks are listed among the
institutions that experienced consequences from the crisis in the well-
known Great Depression story.( R Cooper, D Corbae, 2002)

4. Result for Business : Crashed businesses were crushed because banks were unable to lend
money. Additionally, consumers reduced their spending on all but essentials, which caused
businesses to lay off staff when demand dropped. Workers without jobs have much less money for
purchases. economic implications of the crash. influence on Europe. The impact of World War I was
debt-ridden economies of Europe. They intended to pay back the large sum of money they had
borrowed from American banks. Because Americans were buying less items, foreign companies
had a harder time exporting their goods and were therefore compelled to lay off employees. By
enacting high tariffs (protectionism), governments try to make foreign goods more expensive in
order to protect themselves.

6. The economic depression lasted for a decade, with the
unemployment rate reaching 25% and wages falling by 42%. An
economic depression is primarily caused by worsening consumer
confidence that leads to decrease in
The U.S. economy was severely damaged by the Great Depression
in 1929. All banks collapsed by one-third. 1 Homelessness soared,
and unemployment increased to 25%. 2 International trade broke
down, housing values crashed, and depreciation shot up. 3 For the
stock market to recover, it took 25 years.
By Gauti Eggertsson, 2008

8. UNEMPLOYMENT INCREASEMENT
 Unemployment during the Great Depression worsened with the non-
availability of alternate job sources and a total dependency on primary
sector industries, which were also hit by associated prices. People
turned to farming and mining as sources of livelihood, alongside the
Wall Street crash. The Great Depression did end at different times,
across the globe, but the unemployment ratio skyrocketed into figures
that the world would not forget in a hurry for generations to come.
 Throughout the second part of the 1920’s, high interest rates reduced
British expenditure and contributed to a high unemployment rate in
Great Britain.
by Sawyer, 1979

9. CONCLUSION
In summary, the first time the US
economy experienced a recession was
during The Great Depression. The
event affected a large number of
individuals, and many people believe it
to have been the most destructive
event the world has yet to see.

10. REFERENCES
 Cooper, R. and Corbae, D., 2002. Financial Collapse: A Lesson from the Great
Depression. Journal of Economic Theory, 107(2), pp.159-190.
 Eggertsson, G., 2008. Great Expectations and the End of the Depression. American
Economic Review, 98(4), pp.1476-1516.
 OHANIAN, L., 2010. Understanding Economic Crises: The Great Depression and
the 2008 Recession. Economic Record, 86, pp.2-6.
 SAWYER, M., 1979. ‘THE EFFECTS OF UNEMPLOYMENT COMPENSATION ON
THE RATE OF UNEMPLOYMENT IN GREAT BRITAIN’: A COMMENT. Oxford
Economic Papers, 31(1), pp.135-146.
 Siklos, P., 2001. SESSION 4B: THE GREAT DEPRESSION???MACRO
Understanding the Great Depression in the United States versus Canada. The
Journal of Economic History, 61(2), pp.522-522.

11. THE END!!!
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