Question

Research and write a paper on the Great Depression, including the effect on at least one other country in addition to the United States. Your choice of a country could be one that was affected by this economic event or one that was not. Make sure you include why your country was or was not affected.

Answer 1

What was the Great Depression?

In 1929, a worldwide economic downfall began in the United States, and it lasted till 1939. While its country of origin was the US, it caused drastic declines in production and employment in almost every country of the world. Fundamental changes in economic theories, policies, and institutions came about as a result of the Great Depression.

Why did it come about?

There is no single reason for the worst depression ever experienced by the world economy. Most historians agree that a multitude of causes had a role to play. Declines in demand and absurd government policies caused the production to fall in the United State, setting the wheel into motion. The gold standard was initially used by all the countries around the world as a fixed currency exchange rate. Due to this network of gold exchange, the Great Depression was transmitted to other countries around the world. The recovery period was spent in creating an extensive monetary network instead of the gold standard.

How did it affect the US?

Human suffering remains the most significant impact of the Great Depression. In a short period of time, world output and standards of living dropped across the globe. Severe unemployment increased disparity in living standards, and the situation didn't improve until the 1930s.

How did it affect India?

The effects of the Great Depression of 1929 on India are widely debated. While many historians argue that India was severely impacted, there are several who believe that the damage was minimal and cannot be measured. The Depression slowed down long-term industrial growth. The fall in demand across the globe affected jute production in India, and led to modest gains and unemployment. Since India was under the British Raj at the time of the Depression, the British adopted trade policies that protected their country, while leaving India vulnerable.