The stock market rose in early 1930, with the Dow returning to 294 (pre-depression levels) in April 1930, before steadily declining for years, to a low of 41 in 1932. 12.5 Focus on economic theory or econometricsĪfter the Wall Street Crash of 1929, where the Dow Jones Industrial Average dropped from 381 to 198 over the course of two months, optimism persisted for some time.5.1 Role of women and household economics.4.3 German banking crisis of 1931 and British crisis.4 The gold standard and the spreading of global depression.However, some dispute this conclusion, seeing the stock crash less as a cause of the Depression and more as a symptom of the rising nervousness of investors partly due to gradual price declines caused by falling sales of consumer goods (as a result of overproduction because of new production techniques, falling exports and income inequality, among other factors) that had already been underway as part of a gradual Depression. stock market prices, starting on October 24, 1929. Įconomic historians usually consider the catalyst of the Great Depression to be the sudden devastating collapse of U.S. Faced with plummeting demand and few job alternatives, areas dependent on primary sector industries suffered the most. Farming communities and rural areas suffered as crop prices fell by about 60%. Construction was virtually halted in many countries. Ĭities around the world were hit hard, especially those dependent on heavy industry. rose to 23% and in some countries rose as high as 33%. International trade fell by more than 50%, unemployment in the U.S. Devastating effects were seen in both rich and poor countries with falling personal income, prices, tax revenues, profits and prices. However, in many countries, the negative effects of the Great Depression lasted until the beginning of World War II. Some economies started to recover by the mid-1930s. By comparison, worldwide GDP fell by less than 1% from 2008 to 2009 during the Great Recession. īetween 19, worldwide gross domestic product (GDP) fell by an estimated 15%. The Great Depression was the longest, deepest, and most widespread depression of the 20th century and is regularly used as an example of an intense global economic depression. The economic shock transmitted across the world, impacting countries to varying degrees, with most countries experiencing the Great Depression from 1929. The economic contagion began around September 4, 1929, and became known worldwide on Black Tuesday, the stock market crash of October 29, 1929. The Great Depression was a severe worldwide economic depression between 19 that began after a major fall in stock prices in the United States.

The Dow Jones Industrial Average, 1928–1930

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