Effects of economic depression Essay
A long-term effect of the Great Depression was the departure of every major currency from the gold standard, although the initial impetus for this was World War II. See: Breton Woods Accord In any case, the world economy has simply outgrown the capacity of additions to the world gold supply to accommodate the increase in world population and increased trade without periodic, painful revaluations of any currencies tied to gold. Long Depression[edit source] For more details on this topic, see Long Depression.
Starting with the adoption of the gold standard in Britain and the United States, the Long Depression (1873-1896) was indeed longer than what is now referred to as the Great Depression, but shallower. However, it was known as “the Great Depression” until the sass. Panic of 1837[edit source] Main article: Panic of 1837 The Panic of 1837 was an American financial crisis, built on a speculative real estate market. 10] The bubble burst on May 10, 1837 in New York City, when every bank stopped payment in Goldman silver coinage.
The Panic was followed by a five-year depression, with the failure of banks and record high unemployment levels.  Greek Depression[edit source] Main article: European sovereign-debt crisis Beginning in 2009,
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Regional Depressions Between 1973 and 2002[edit source] Several Latin American countries had severe downturns in the sass: by the Shoe and Prescott definition of a great depression as at least one year with output 20% below trend, Argentina,Brazil, Chile, and Mexico experienced great depressions in the sass, and Argentina experienced another in 1998-2002. This definition also includes the economic performance of New Zealand from 1974-1992 and Switzerland from 1973 to the present, although this designation for Switzerland has been Over the period 1980-2000, Sub-Sahara Africa broadly suffered a fall in absolute income levels. 1 5] Post-communism[edit source] The economic crisis in the sass that struck former members of the Soviet Union was almost twice as intense as the Great Depression in the countries of Western Europe and the United States in the Average standards of living registered a catastrophic fall in the early sass in many parts of the former Eastern Bloc – most notably, in post-Soviet states.  Even before Russian’s financial crisis of 1998, Russian’s GAP was half of what it had been in the early sass. 18] Some populations are still poorer today than they were in 1989 (e. G.
Ukraine, Moldavia, Serbia,Central Asia, Caucasus).  The collapse of the Soviet planned economy and the transition to market economy resulted in catastrophic declines in GAP of about 45% during the 1990-1996 period and poverty in the region had increased more than tenfold.  Finnish economists refer to the Finnish economic decline around the breakup of the Soviet Union (1989-1994) as a great depression; this is partly attributed to the breakup of the Soviet Union, and partly to the Scandinavian banking rises, which was also suffered, to a lesser degree, by Sweden and Norway.
Great Depression in India From Wisped, the free encyclopedia The Great Depression of 1929 had a very severe impact on India, which was then under the rule of the British Raja. The Government of British Individuated a protective trade policy which, though beneficial to the United Kingdom, caused great damage to the Indian economy. During the period 1929-1937, exports and imports fell drastically crippling seaborne international trade. The railways and the agricultural sector were the most affected.
The international financial crisis combined with detrimental policies adopted by the Government of India resulted in the soaring prices of commodities. High prices along with the stringent taxes prevalent in British India had a dreadful impact on the common man. The discontent of farmers manifested itself in rebellions and riots. The Salt Straight of 1930 was one of the measures undertaken as a response to heavy taxation during the Great Depression. The Great Depression and the economic policies of the Government of British India worsened the already deteriorating Indo-British relations.
When the first general elections were held according to the Government of India Act 1935, anti-British linings resulted in the Indian National Congress winning in most provinces with a The Great Depression A global economic depression broke out in 1929 following the American stock market crash of 1929 and rising speculations among the investors. However, the causes were more diverse and multi-pronged, with the rise in costs and economic inflation of the post-war period being one of the main reasons.
This inflation was caused by excessive manufacturing activities during the First World War.  As a result, huge stocks of goods were piled up without being used.  Wartime expenditure had educed the countries of Europe to a state of heavy debt.  Protective economic policies of European countries made their condition even worse.  The United States of America was not affected, partly because it had participated on the side of the victorious Allies and partly because the American states were never under attack during the span of the war. 5] As a result, the United States of America emerged as a financial superpower and the principal creditor to European countries.  The Treaty of Versailles and its conditions had impoverished Germany.  Germany lost a lot due to its involvement in the war. The country now owed extremely high debts.  However, contrary to expectations, Germany did not pay off their debt by exporting manufactured goods.  Instead, Germany paid off its debts by borrowing from the United Kingdom.  The United Kingdom, meanwhile, paid Germany by borrowing from the United States of America. 5] This created a situation wherein all European countries became dependent on the United States of America. When the American stock market suffered its first crash on October 24, 1929, there was a dreadful psychological effect on the nation.  America stopped providing loans to foreign entries, thereby leading to a global financial disaster.  Economy of British India Indian economy had been largely agricultural before and during the rule of the British. However, during British rule, there was a major shift from the growth of food grains to the cultivation of cash crops.
This change was fostered by Indian’s British rulers in order to provide for the textile mills in England, the most important of them being the cotton mills of Manchester and Lancashire which were fed with raw cotton produced in India. Since 1858, committees were established to investigate the usability of cotton cultivation in India to provide raw materials for the mills in Lancashire. New technologies and industries were also introduced in India, albeit on a very small scale compared to developed nations of the world.