Explain the causes of great depression class 10?
Question: Explain the causes of great depression class 10?
The Great Depression was a severe, world-wide economic decline, beginning in 1929 and lasting until the late 1930s. It was caused by several factors, including the collapse of an unstable international financial system, the diversion of resources to the military, a drop in consumer spending, the collapse of agricultural commodity prices, and a lack of coherent economic policies.
1. Stock Market Crash: In October 1929, the stock market crashed, beginning the most severe economic decline of the 20th century, known as the Great Depression. The stock market crash initially caused a decline in consumer confidence as people began to worry about their investments. This decline in consumer confidence led to a decrease in consumer spending, and this in turn caused a decrease in production and then unemployment, and ultimately led to a decline in consumer income.
2. Bank Failures: After the stock market crash, banks and investment firms began to fail due to a lack of confidence in the system. As banks began to decline people withdrew their money in fear, leading to further acceleration of the stock market decline. The subsequent bank failures caused a contraction in the money supply, making it difficult and expensive to borrow money and reducing the amount of credit available.
3. Government Policy: Many countries, including the United States, had little or no economic policies in place to address the increasing economic problems, such as promoting economic growth, helping businesses stay afloat, or providing support to the unemployed. This lack of direction meant that economic conditions continued to worsen as economic changes were not addressed.
4. International Trade: Finally, a decrease in world trade caused by protective tariffs, political instability, and currency manipulation further exacerbated the economic situation. Countries erected restrictive tariffs in order to protect their own industries, leading to a decrease in trade, lower prices for goods, and resulting unemployment and further reduction in worldwide spending.
Rjwala is your freely Ai Social Learning Platform. here our team solve your academic problems daily.
0 Komentar
Post a Comment