What

The Great Depression was a dramatic worldwide

downturn beginning in some countries as early as
1928 (Garraty, 1987).
The Great Depression is
commonly used as an
example of how far the
worlds economy can
decline (Duhigg, 2008).
Unemployment rates
rose as high as 33%
in some countries
(Frank; Bernanke,
2007).
The Depression had
destructive effects in
countries that exported
raw materials
(Saavedra, 2012).
When
The Great Depression
started in 1929 and for the
most part ended around
1939 to the middle 1940s
(Garraty, 1987).
The beginning of the Great
Depression in the United States is
associated with the stock market
crash on October 29, 1929,
known as Black Tuesday
(Amaral; Macgee, 2002).
Throughout the
1930s over 9,000
banks failed.
Bank deposits
werent insured,
thus people lost
their savings
(Amaral; Macgee,
2002).
Where
The Great Depression
effected many countries
throughout the world. Both
industrialised countries and
those which exported raw
materials were hurt.
Australia was hit very
hard. Wages fell and
by 1931
unemployment was at
almost 32%
(Fishback, 2012).
The worst point in the
United States was
1933. More than 15
million Americans
were unemployed
(Amaral; Macgee,
2002).
Near the end of the
Depression, Canada still had
about 30% unemployment
rate. It stayed below 12%
until the beginning of WWII
(Amaral; Macgee, 2002).
The effects of the Depression varied in
the United Kingdom, the industrial
areas were effected the most because
the demand for their products seized.
Unemployment rates rose to 2.5 million
by the end of 1930 (Peck; Hallet; Ma,
1992).
How
The Black Tuesday
market crash was one
of the major causes
that led to the Great
Depression.
With the stock market
crash, people had
fears of further
economic woes.
Individuals from all
classes stopped
purchasing items
which led to the
reduction of
production, thus
reducing the need for
a large workforce
(Garraty, 1987).
Banks lent out
more money than
they had, which in
the end resulted in
debt deflation.
When the market
crashed brokers
called in for loans,
which could not be
paid back
(Saavendra,
2012).
What impact has the Great Depression had on Australian Society Today?

The Great Depressions impact on Australian society was destructive. Without steady
incomes and jobs, many people lost their homes. After the Wall Street crash, the
Australian Federal Government allocated $1m to multiple states to provide relief to
unemployed people, regardless of government assistance, unemployment rates
continued to grow. As of now, unemployment rates are 5.7%.
One lesson we learned was to steer clear of the gold standard, and to move to floating
exchange rates. Another lesson was that monetary and fiscal policies should be used to
stimulate private demand during downturns, but also that they should be reloaded
during the good times to be ready for the next potential recession.
We were lucky to have the economy in good standing when the crisis struck.
Economists have been studying the mistakes of the Great Depression for decades and
have been taking steps to ensure it isnt repeated.
References
Amaral, P.; Macgee, J. (2002). The Great Depression in Canada and the United States:
A Neoclassical Perspective. doi:10.1006/redy.2001.0141
Duhigg, C. (2008). Depression, You Say? Check Those Safety Nets, New York Times.
Retrieved from http://www.nytimes.com/2008/03/23/weekinreview/23duhigg.html
Fishback, P. (2012). Relief During the Great Depression in Australia and America. doi:
10.1111/k.1467
Frank, R.; Bernanke, B. (2007). Principles of Macroeconomics (3
rd
ed.). p. 98.
Garraty, J. (1987). The Great Depression.
Peck, J; Hallet, A; Ma, Y. (1992). The Transmission of the Great Depression in the
United States, Britain, France and Germany. p. 43. doi:10.1016/0014
Saavendra, A. (2012). The Great Depression. Retrieved from
http://prettylittleresearchers.wordpress.com/2012/06/12/the-great-depression-by-andrea-
acevedo/