How Did The Great Depression Affect The Economy In The 1930s

The Great Depression was a severe worldwide economic downturn that took place mostly during the 1930s, beginning in the United States. The timing of the Great Depression varied across the world; in most countries, it started in 1929 and lasted until the late 1930s. It was the longest, deepest, and most widespread depression of the 20th century. The depression caused massive unemployment, poverty, and hunger. It also led to the rise of dictatorships in Europe and Asia. The great depression began to end in the early 1930s, but its effects were felt for many years afterwards. The Great Depression is commonly used as an example of how far the world's economy can decline.

The Great Depression had a number of causes, including the stock market crash

In places like Argentina, Australia, and Chile, the prices of products had declined, and that decline had negatively affected the economies in said countries. The United States had to cut back on their investments to Germany, which led to Germany not being able to pay its war reparations and that led to other European countries falling because they depended on Germany’s payments. In order to keep exports cheaper for buyers from abroad, countries would devalue their currencies. Countries also reintroduced tariffs, which would make imports more expensive for their citizens. The problem with this, however, was that it only caused more problems and worsened the economy. In Austria, their largest bank had collapsed due to the banking panic, and that panic would spread through Germany and Hungary. Many countries during this time had abandoned the Gold Standard, a system of currencies based on a specified amount of gold. The world employment rate was up to thirty percent. Production in Germany had dropped to fifty-three percent. The entire world was in a wreck and needed extreme

The second New Deal had many special and important key programs and acts. Many programs were created during Franklin’s presidency. The Agricultural Adjustment Administration was one of the programs Franklin had created which helped the income of farmers. One program was the Public Works Administration, which had hit Franklin’s three goals: economic recovery, job creation, and investment in public projects. It was created to help reduce unemployment rates and hopefully raise consumer spending. An important act made during his time was the Social Security Act of 1935. This act had developed many key factors within the New Deal. It provided a universal retirement pension benefit for all Americans, and unemployment insurance and benefits for dependent children. Works Progress Administration was created in May 1935 and was the largest New Deal agency. It had employed millions of unemployed citizens. The WPA oversaw large infrastructure projects and employed almost eight million people. Even with all this work however, the Great Depression still continued. It wouldn’t be till World War II where there would be millions of jobs for men and