The Great Depression 董月梅 20080640311

CONTENTS 1.A General 2.Top 5 Causes Description Summary 3.The effects

I.A General Description of Great Depression The Great Depression was a severe worldwide economic depression in the decade preceding World War II. It was the longest, most widespread, and deepest depression of the 20th century. It originated in the U.S., starting with the fall in stock prices that began around September 4, 1929 and became worldwide news with the stock market crash of October 29, 1929 (known as Black Tuesday). From there, it quickly spread to almost every country in the world.

The Great Depression had devastating effects in virtually every country, rich and poor. Personal income, tax revenue, profits and prices dropped, while international trade plunged（暴跌，骤降） 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 Construction was virtually halted in many countries. Farming and rural areas suffered as crop prices fell by approximately 60%.Areas dependent on primary sector （行业）industries such as cash cropping（经济作物）, mining and logging（伐木作业） suffered the most.

USA annual real GDP from 1910–60, with the years of the Great Depression (1929–1939) highlighted

Unemployment rate in the US 1910–1960, with the years of the Great Depression (1929–1939) highlighted （突出，醒目）

Economic indicators（迹象） Change in economic indicators 1929–1932 USA Britain France Germany Industrial production -46% -23% -24% -41% Wholesale prices -32% -33% -34% -29% Foreign trade -70% -60% -54% -61% Unemployment +607% +129% +214% +232%

Crowd at New York's American Union Bank early in the Great Depression.

Unemployed men march in Toronto, Ontario, Canada Two young men seeking work

a mother of seven children in California, March 1936. Family during the Great Depression, California, 1936

"Hoover wagons", cars pulled by horses, were used by farmers too impoverished to purchase gasoline.

Top 5 Causes of the Great Depression 1. Stock Market Crash of 1929 In fact, it was one of the major causes that led to the Great Depression. Two months after the original crash in October, stockholders had lost more than $40 billion dollars. Even though the stock market began to regain some of its losses, by the end of 1930, it just was not enough and America truly entered what is called the Great Depression.

2. Bank Failures Throughout the 1930s over 9,000 banks failed. Bank deposits were uninsured and thus as banks failed people simply lost their savings. Surviving banks, unsure of the economic situation and concerned for their own survival, stopped being as willing to create new loans. This exacerbated（恶化） the situation leading to less and less expenditures.

3. Reduction in Purchasing Across the Board（全面，整体） With the stock market crash and the fears of further economic woes（问题）, individuals from all classes stopped purchasing items. This then led to a reduction in the number of items produced and thus a reduction in the workforce（全体员工）. As people lost their jobs, they were unable to keep up with paying for items they had bought through installment （分期付款）plans and their items were repossessed（收回）. More and more inventory（库存） began to accumulate.

4. American Economic Policy with Europe As businesses began failing, the government created the Smoot-Hawley Tariff （斯穆特-霍利关税）in 1930 to help protect American companies. This charged a high tax for imports thereby leading to less trade between America and foreign countries.

5. Drought Conditions While not a direct cause of the Great Depression, the drought that occurred in the Mississippi Valley in 1930 was of such proportions that many people could not even pay their taxes or other debts and had to sell their farms for no profit to themselves.

The effects of the Great Depression It was huge across the world. Not only did it lead to the New Deal(新政) in America but more significantly, it was a direct cause of the rise of extremism in Germany leading to World War II.

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