Coupon Accepted Successfully!


The Great Depression

The World plunged into a depression from 1929 to 1930s. During this time, the world experienced decline in production, employment, incomes and trade. The worst affected was agriculture across the countries.

The causes for the Great Depression were as follows;
  1. There was an over production of agriculture and falling prices of agricultural commodities. The farm produce rotted for lack of buyers.
  2. The withdrawal of the US loans affected the world in different ways such as failure of major banks and collapse of currencies. The US doubled its import duties to protect its economy from depression. This gave a severe blow to world trade.

The Great Depression in the US

The US was an industrial country; it was severely affected by the Depression. With the fall in prices, the US banks slashed domestic lending and called back loans. Farms were ruined, the consumer prosperity disappeared, unemployment increased and the US and the banking system collapsed. By 1935, a modest recovery was seen in the industrial countries.

The Great Depression and India

The Depression affected Indian trade as well. The prices of wheat fell rapidly and the farmers suffered due to this. Across India, peasants’ indebtedness increased. During the Great Depression, India became an exporter of precious metals, especially gold. The famous economist John Maynard Keynes thought that Indian gold exports promoted global economic recovery. Britain recovered from this but Indian peasants suffered. There was unrest and Mahatma Gandhi launched the Civil Disobedience Movement in 1931.

Test Your Skills Now!
Take a Quiz now
Reviewer Name