Elucidate any three factors that led to the Great Depression.
Points to Remember
Around 1929, the Great Depression started , and it lasted until the middle of the 1930s . Most regions of the world experienced sharp declines in output, employment, earnings, and commerce during this time. The most severely impacted areas and communities were those in agriculture.
The causes for Great Depression were
- Post-world War economy of the world was fragile. Overproduction in agriculture was a major issue
- US overseas loans amounted to over $ 1 billion in the first half of 1928.
- The stock market crisis had an impact on bank failure.
- Increase in US import duty.
Answer to be written in the exam
- Post-world War economy of the world was fragile. Overproduction in agriculture was a major issue in the world. It was made worse by falling agricultural prices. Falling pricing and excessive crop storage led to the degradation of agricultural crops.
- US overseas loans amounted to over $ 1 billion in the first half of 1928. Countries that heavily rely on US financing were currently facing a serious crisis . The withdrawal of US loans affected much of the rest of the world.
- The stock market crisis had an impact on bank failure , which caused more customers to withdraw their savings.Banks got bankrupt and shut down in Europe and in the US because they were unable to repay the loans.
- The US attempted to defend its economy during the Great Depression by raising import taxes.
* Elaborate on any 3 causes of the Great Depression