Group 1

Vishal Mahashabde 16BSP2893

Siddhant Jain 16BSP2484
Surbhi Parekh 16BSP2648
Vatsal Maheshwari 16BSP2813
Urvashi Jain -16BSP2762
Vinit Shah 16BSP2870

The United States Of Amer

The GREAT
DEPRESSION
(1929)

Great Depression
Worldwide economic downturn that began in

1929

and lasted until about

1939.

Longest and most severe depression

ever experienced by Western world

decline in
output, severe unemployment, and
acute deflation in almost every country of
Depression resulted in drastic

the globe
The great depression was long and severe in
United states and Europe; it was milder in Japan

Causes of the Great Depression

Fundamental cause of the Great Depression was a decline

spending(sometimes referred as aggregate

demand), which led to a decline in
production as manufacturers and merchandisers
in

noticed an rise in inventories

Initial decline in output was believed to have stemmed
from tight US monetary policy aimed at limiting
stock market speculation.
The stock prices risen more than fourfold from the low
in 1921 to the peak reached in 1929. Federal reserve
had raised interest rates in hopes of slowing the

rapid rise in stock prices. Higher interest

rates depressed interest sensitive spending area

Causes of The Great

Depression
-Tariffs and war debt policies
-U.S. demand low, despite
factories producing more
-Farm sector crisis
-Easy credit

By fall of 1929, U.s. Stock prices had

reached levels that could not be justified by
reasonable anticipation of future earnings. As a
result, when a variety of minor events led to
gradual price declines in October 1929,
investors lost confidence and stock market

bubble burst
Panic selling began on Black Thursday,
October 24,1929. Many stocks had been
purchased on margin, using loans secured
by only small fraction of the stocks value.
Price declines forced many investors to

FINANCIAL BREAKDOWN
After the cash, many Americans
panicked and withdrew their
money from banks.
Banks had invested in the stock
market and lost money.
In 1929, 600 banks failed.
By 1933, 11,000 of 25,000
banks nationwide had collapsed

Dates of the Great Depression in various countries

(in quarters)
country

depression began

recovery began

United States

1929:3

1933:2

United Kingdom

1930:1

1932:4

Germany
1932:3

1928:1

France
1932:3

1930:2

Italy

1929:3

1933:1

Japan

1930:1

1932:3

Canada
1933:2

1929:2

Belgium
1932:4

1929:3

The Netherlands
Sweden

1929:4
1930:2

1933:2

Peak-to-trough decline in industrial production in various countries

(annual data)
country

decline

United States 46.8%

United Kingdom 16.2%
Germany 41.8%
France

31.3%

Italy
Japan

33.0%
8.5%

Canada

42.4%

Belgium

30.6%

The Netherlands

37.4%

Sweden
Denmark
Poland

10.3%
16.5%
46.6%

Czechoslovakia 40.4%
Argentina

17.0%
Brazil

7.0%

GNP DROPS
UNEMPLOYMENT SOARS
Between 1928-1932, the U.S. Gross
National Product(GNP)- the total
output of a nations goods & servicesfell nearly 50% from $104 billion to
$59 billion
90,000 businesses went bankrupt

Unemployment leaped from 3% in

1929 to 25% in 1933

Effects of Depression
Suicide rates rose more than 30%
between 1928-1932
Alcoholism rose sharply in urban areas
People were admitted to state mental
hospital
Many people showed great kindness to
stranger

THANK YOU