Assignment 20:: The Great Depression
2:18 PM
The Great Depression was a period of time that spanned at the end of the 1920s to 1939. During this time the depression affected economies from all over over the world so, “International trade fell 30 percent as nations tried to protect their industries by raising tariffs on imported goods,” (“The Great Depression in Global Perspective”). In an attempt to repose the countries’ economies by raising tariffs it only persisted and caused more people to suffer the effects of the depression. This was reflected in the year of 1932 in which an estimated 30 million people were unemployed worldwide. In addition to that, “ "Beggar-thy-neighbor" trade policies were a major reason why the Depression persisted as long as it did,” (“The Great Depression in Global Perspective”). The Beggar-thy-neighbor policy was a procedure that countries worldwide followed by borrowing other countries’ money to ease their depression. However, since Africa, Asia, Australia, Europe, and North and South America were all in depressions, it made it harder for countries to ask for these policies. The Great Depression affected many countries, causing a worldwide economic collapse.
However, the Great Depression mostly affected the United States of America. As stated, “In the United States, the Great Depression began soon after the stock market crash of October 1929, which sent Wall Street into a panic and wiped out millions of investors,” (“The Great Depression”). It was important because it was where many Americans invested their stocks. Stocks are important because it determines how much money people are receiving and how much they are losing. A lot of people sold their stocks, making the banks have to loan their money from others. Which in turned closed thousands of banks nationwide. As an effect of the downfall of the economy, “By 1930, 4 million Americans looking for work could not find it; that number had risen to 6 million in 1931,” (“The Great Depression”). This was a huge number of people who were unemployed in America, which was a part of the reason why the Great Depression was so significant in America. Not only that, it affected the people who were still employed by creating lower production rates and falling prices. In conclusion, the Great Depression severely affected America and can be reflected into these extreme statistics.
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