A power point presentation on the Great Depression, it's causes, effects, results,etc.; and the Great Depression in India and USA. and so on

1. THE GREAT
DEPRESSION
By
DIVYA RAJPUT

2. • THE GREAT DEPRESSION
– THE COMING OF DEPRESSION
– THE BEGINNING
– CAUSES OF GREAT DEPRESSION
 Banks failure.
 Decline of international trade.
 Overproduction of agricultural goods.
 Over production of industrial goods.
 Decline of farming industry.
 Unequal distribution of wealth.
– RESULTS OF GREAT DEPRESSION
 Nations economy crashed.
 Farmers struggled a lot.
 Rising price resulted in declining of consumers.
 Gap between rich and poor widened.
 Banks failed.
 Gross National Product decreased, Unemployment increased.
 Hardship, homelessness increased.
– WORLD WIDE EFFECTS
 AUSTRALIA
 EAST ASIA
 FRANCE
 GERMANY
 LATIN AMERICA
 INDIA
 USA
• GREAT DEPRESSION IN USA
– CAUSES OF GREAT DEPRESSION IN USA
– EFFECTS OF GREAT DEPRESSION ON USA
• GREAT DEPRESSION IN INDIA
– EVENTS RELATED TO GREAT DEPRESSION
 Declaration of independence
 Salt satyagraha

3. THE GREAT DEPRESSION

4. THE GREAT DEPRESSION
The Great Depression was a severe worldwide economic
depression in the decade preceding World War II . The
timing of the Great Depression varied across nations, but in
most countries it started in 1930 and lasted until the late
1930s or middle 1940s. It was the longest, deepest, and
most widespread depression of the 20th century. In the 21st
century, the Great Depression is commonly used as an
example of how far the world's economy can decline. The
depression originated in the U.S., after the fall in stock
prices that began around September 4, 1929, and became
worldwide news with the stock market crash of October 29,
1929.

5. THE COMING OF DEPRESSION
During the 1920s, many Americans enjoyed what seemed like an endless era of prosperity.
But in 1929, the stock market crashed.
World wars loans.
Declining trade.
Production fell, unemployment rose, and the economy went into a period of dramatic decline.
Years after the Great Depression began, periodic contraction was seen as part of the business
cycle.
Economic historians usually attribute the start of the Great Depression to the sudden
devastating collapse of US stock market prices on October 29, 1929, known as Black
Tuesday.
By mid-1930, interest rates had dropped to low levels, but expected deflation and the
continuing reluctance of people to borrow meant that consumer spending and investment were
depressed.
By May 1930, automobile sales had declined to below the levels of 1928. Prices in general
began to decline, although wages held steady in 1930; but then a deflationary spiral started in
1931.
Conditions were worse in farming areas, where commodity prices plunged, and in mining and
logging areas, where unemployment was high and there were few other jobs.

6. THE BEGINNING
The economic contraction that began with the
Great Crash triggered the most severe
economic downturn in the nation’s history—
the Great Depression. In the beginning in
mid-1930, a severe drought ravaged the
agricultural heartland of the US. The Great
Depression lasted from 1929 until the
United States entered World War II in 1941.
The stock market crash of 1929 did not
cause the Great Depression. Rather, both
the Great Crash and the Depression were the
result of deep underlying problems with the
country’s economy.

7. Together, government and business spent more in the first half of
1930 than in the corresponding period of the previous year.
Consumers, many of whom had suffered severe losses in the stock
market the previous year, cut back their expenditures

8. CAUSES OF GREAT DEPRESSION
Banks failure.
Decline of
international
trade.
Overproduction of
agricultural goods.
Over
production of
industrial
goods.
Unequal
distribution of
wealth.
Decline of
farming
industry.

9. BANKING INDUSTRY COLLAPSED
 Families lose savings in crash;
banks have little cash left on
reserve.
 Banks lose money loaned to ‘buy
on the margin’ (even people who
did not invest lost out!).
 People default on mortgages due
to unemployment.
 European nations could not repay
their debts.
 America would not forgive the
loans.
 Banks begin to fail.

10. INTERNATIONAL TRADE DECLINED
European demand for goods
declines
Factories producing more
Personal income , tax, revenue,
profits and prices dropped.
International trade plunged by
more than 50%.
Interest rates dropped to low
levels

11. Overproduction of Agricultural
Goods
American farmers had prospered during
World War I
Use profits to buy machines to produce
more
After World War I, demand drops
surplus!
Huge supply + Low demand = Low prices

12. Overproduction of Industrial Goods
oTechnological advances change how
Americans live and work
oIn the Roaring 1920s:
• Consumer demand is very high
• Machine produce quality products
quickly
• Unrestricted capitalism
oBy 1929, supply greatly exceeds
demand!

13. FARMING INDUSTRY DECLINE
 Farmers borrowed from bank
to buy machinery
 Foreclosed on mortgages and
other debts
 Banks closed due to defaults
and stock market
 Between 1929 and 1933
farmers’ income 50%
 Farmers in dept.
 One million families lose their
farms by 1934
 Many people too poor to buy
goods to lift economy

14. UNEQUAL DISTRIBUTION OF
WEALTH
• Gap between the rich and poor widens in
the 1920s
• By 1929 some Americans have more wealth
• Wages increased
• The income of rich increased
• Wealth does not trickle down
• Consumers in debt ; Cannot afford
products

15. EFFECTS OF GREAT
DEPRESSION
The Great Depression had devastating effects in countries rich and
poor . Personal income , tax, revenue, profits and prices dropped,
while international trade plunged by more than 50%. Unemployment
in the U.S. rose to 25%, and in some countries rose as high as 33%.
Cities all around the world were hit hard, especially those dependent
on heavy industry. Construction was virtually halted in many
Countries. Farming and rural areas suffered as crop prices fell by
approximately 60%. Facing plummeting demand with few alternate
sources of jobs, areas dependent on primary sector industries such as
cash cropping, mining and logging suffered the most. Some economies
started to recover by the mid-1930s. In many countries, the negative
effects of the Great Depression lasted until after the end of World
War II.

16. RESULTS OF GREAT
DEPRESSION
Nations
economy
crashed.
Farmers
struggled a
lot.
Rising price
resulted in
declining of
consumers.
Gap
between
rich and
poor
widened.
Banks
failed.
Gross
National
Product
decreased,
Unemployme
nt increased.
Hardship,
homelessness
increased.

17. THE NATION’S SICK ECONOMY
As the 1920s advanced, serious problems threatened
the economy while
Important industries struggled, including :
 Agriculture
 Railroads
 Textiles
 Steel
 Mining
 Automobiles
 Housing
 Consumer goods

18. FARMERS STRUGGLE
◊ No industry suffered as much as
agriculture
◊ During World War I European
demand for American crops
soared
◊ After the war demand
plummeted
◊ Farmers increased production
sending prices further
downward

19. CONSUMER SPENDING DOWN
‼ By the late 1920s,
American consumers
were buying less
‼ Rising prices,
stagnant wages and
overbuying on credit
were to blame
‼ Most people did not
have the money to
buy the flood of
goods factories

20. GAP BETWEEN RICH
& POOR
‡ The gap between rich
and poor widened
‡ The wealthiest 1% saw
their income rise 75%
‡ The rest of the
population saw an
increase of only 9%
‡ More than 70% of
American families
earned less than $2500
per year

21. FINANCIAL COLLAPSE
◊ After the crash, many
Americans panicked and
withdrew their money
from banks
◊ Banks had invested in
the Stock Market and
lost money
◊ In 1929- 600 banks fail
◊ By 1933 – 11,000 of
the 25,000 banks
nationwide had collapsed

22. GNP DROPS, UNEMPLOYMENT
SOARS
† Between 1928-1932, the U.S.
Gross National Product (GNP)
– the total output of a nation’s
goods & services – fell nearly
50% from $104 billion to $59
billion
† 90,000 businesses went
bankrupt
† Unemployment leaped from
3% in 1929 to 25% in 1933

23. HARDSHIPS,
HOMELESSNESS
INCREASED
The Great Depression brought
hardship, homelessness, and
hunger to millions
Across the country, people lost
their jobs, and their homes
Some built makeshifts shacks
out of scrap material

24. WORLD WIDE EFFECTS
AUSTRALIA
EAST ASIA
FRANCE
GERMANY
LATIN AMERICA
INDIA
USA

25. AUSTRALIA
¤ Australia's extreme dependence on
agricultural and industrial exports meant it
was one of the hardest-hit countries in the
Western world
¤ Falling export demand and commodity
prices placed massive downward pressures
on wages
¤ Further, unemployment reached a record
high of almost 32% in 1932
¤ After 1932, an increase in wool and meat
prices led to a gradual recovery

26. East Asia
 The Great Depression in East
Asia was of minor impact
 The Japanese economy shrank
by 8% 1929–31
 The invasion and subjugation
of Manchuria into a Japanese
puppet-state in September
1931, thus providing Japan
with raw materials and
energy, the Japanese economy
was able to recover by 1932
and continued to grow.

27. FRANCE
 The Depression began to affect
France from about 1931
 France's relatively high degree of
self-sufficiency meant the damage
was considerably less than in
nations like Germany
 Hardship and unemployment
were high enough to lead to
rioting and the rise of the socialist
Popular Front.

28. Germany
† Germany's Weimar Republic was hit hard by the
depression, as American loans to help rebuild the
German economy stopped.
† Unemployment soared, especially in larger cities,
and the political system veered toward extremism.
† Hitler's Nazi Party came to power in January 1933.
In 1934 the economy was still not balanced enough
for Germany to work on its own.

29. LATIN AMERICA
 Because of high levels of United States investment in Latin
American economies, they were severely damaged by the
Depression
 Chile, Bolivia and Peru were particularly badly affected
 One result of the Depression in this area was the rise of fascist
movements.

30. INDIA
‡ Decline of international trade
resulted the obtaining of low
revenue.
‡ Indian gold reserves sold off.
‡ Uninhibited increase in land
rent.
‡ Value of the agricultural
produce came down to
alarming levels.
‡ Heavy losses resulted the
farmers to sell off their
valuables in order to pay the
land rent and other taxes.
‡ This resulted the farmers in
dept.

31. USA
§ About 13 million
people became
unemployed
§ In the early
1930s, more people
emigrated from the
United States than
immigrated to it
§ From 1929 to
1932, about 5,000
banks went out of
business.
§ Many people
suffered from
diseases.

32. GREAT DEPRESSION IN USA

33. GREAT DEPRESSION IN USA
The Great Depression began in August of 1929, when the United States
economy first went into an economic recession . Although the country
spent two months with declining GDP, it was not until the Wall Street
Crash of October, 1929 that the effects of a declining economy were felt,
and a major worldwide economic downturn ensued. The market crash
marked the beginning of a decade of high unemployment, poverty, low
profits, deflation , plunging farm incomes, and lost opportunities for
economic growth and personal advancement. include numerous factors,
especially high consumer debt, ill-regulated markets that permitted
overoptimistic loans by banks and investors, and the lack of high- growth
new industries, all interacting to create a downward economic spiral of
reduced spending, falling confidence, and lowered production. Industries
that suffered the most included construction, agriculture as dust-bowl
conditions persisted in the agricultural heartland, shipping, mining, and
logging as well as durable goods like automobiles and appliances that
could be postponed. The Depression caused major political changes in
America. The Depression also resulted in an increase of emigration of
people to other countries for the first time in American history.

34. CAUSES OF GREAT DEPRESSION IN USA
Banks began to fail in October 1930 (one year after the crash) when
farmers defaulted on loans. There was no federal deposit insurance
during that time as bank failures were considered quite common. This
caused the money supply to shrink and the economy to contract and a
significant decrease in aggregate investment. The decreased money
supply further aggravated price deflation, putting further pressure on
already struggling businesses High interest rates needed to be
maintained, in order to attract international investors who bought
foreign assets with gold. However, the high interest also inhibited
domestic business borrowing. All this resulted in the introduction of the
Great Depression.

35. EFFECTS OF GREAT DEPRESION
ON USA
13 million people became unemployed. Many people belonged to
families with no regular full-time wage earner. Industrial production fell
by nearly 45% between 1929 and 1932. Homebuilding dropped by 80%
between the years 1929 and 1932. About 11,000 of the US’ banks had
failed. U.S. GDP fell around 30%, the stock market lost almost 90% of
its value. The unemployment rate fell down to about 3%. In 1933, 25%
of all workers and 37% of all nonfarm workers were unemployed. Over
one million families lost their farms between 1930 and 1934. Corporate
profits had dropped from $10 billion in 1929 to $1 billion in 1932.
Between 1929 and 1932, the income of the average American family was
reduced by 40%. About nine million savings accounts had been wiped
out between 1930 and 1933. Over 273,000 families had been evicted from
their homes in There were two million homeless people migrating
around the country. Over 60% of Americans were categorized as poor
by the federal government in 1933. In the early 1930s, more people
emigrated from the United States than immigrated to it. Many people
became ill with diseases such as tuberculosis.

36. GREAT DEPRESSION IN INDIA

37. GREAT DEPRESSION IN INDIA
The Great Depression of 1929 had a very severe impact on India, which
was then under the rule of the British Raj . The Government of British
India adopted 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 soaring prices of
commodities. High prices along with the stringent taxes prevalent in British
India had a dreadful impact on most Indians. The discontent of farmers
manifested itself in rebellions and riots. The Salt Satyagraha of 1930 was
None 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 already deteriorating Indo-
British relations. When the first general elections were held according to
the Government of India Act 1935 , anti-British feelings resulted in the pro-independence
Indian National Congress winning in most provinces with a
very high percentage of the vote share.

38. EVENTS RELATED TO THE GREAT DEPRESSION
IN INDIA
Declaration of
independence
Salt satyagraha

39. DECLARATION OF INDEPENDENCE
On December 31, 1929, at a session
of the Indian National Congress held
on the banks of the river Ravi in
Lahore, Jawaharlal Nehru unfurled
the tricolor and declared that
complete independence from British
rule would, henceforth, be the goal of
the Congress. This was a remarkable
shift of policy for the Indian National
Congress as it had, till now, been a
staunch advocate of dominion status.
This declaration also triggered the

40. SALT SATYAGRAHA
The Salt Satyagraha formed the highpoint of the Civil
Disobedience Movement. While the heavy salt tax was
always a burden to the poor peasant, the widespread
poverty during the Great Depression made it even more
difficult for the commoner to procure salt. In response to
this tax, between March 12, 1930 and April 5, 1930,
Mahatma Gandhi marched with over 30,000 followers to
the coastal town of Dandi in Gujarat , where they illegally
manufactured salt and defied the Government monopoly
on salt. Subsequently, similar satyagrahas were organized
at Dharasana and Vedaranyam. The Government
responded with a massive roundup, but by then, the
march and the media coverage had radically molded
international opinion.

41. BIBILOIGRAPHY
 http://en.wikipedia.org/wiki/Great_Depression_in_India
 http://www.flexiguru.com/expert/what-is-the-effect-of-the-great-depression-
on-the-indian-economy--915
 http://www.rupe-india.org/47/depression.html
 http://en.wikipedia.org/wiki/Great_Depression
 http://www.history.com/topics/great-depression
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43. THANK
YOU