THE GREAT DEPRESSION 1929 1940
THE GREAT DEPRESSION
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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People losing jobs
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Many people died/ dying
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Businesses closing down
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Both time periods lasted about a decade
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Money is losing its value
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Detailed explanation-1: -The coronavirus has been a sudden, severe disruption to economic activity and regular social functioning. It’s clear with the Great Depression, with the benefit of hindsight, that there was a long lead up of factors which led to the eventual and devastating slump.
Detailed explanation-2: -Sales have seen a sharp decline due to travel restrictions, social distancing, restrictions on sale of some commodities and customers resorting to budget cuts and putting projects on hold. Companies are struggling to recover fixed costs in the absence of revenue generation due to sharp drop in sales.
Detailed explanation-3: -Causes of Great Depression The failure of banks, which was the impact of the stock market crash as more people withdrew their savings from the banks leading to closure. Reduction in purchases due to diminished savings. The passing of Smoot-Hawley Tariff or the Tariff Act of 1930, imposed high taxes on imported goods.
Detailed explanation-4: -Question: What did the Great Depression and the Great Recession have in common? Answer: Huge economic slumps accompanied both. Also, the diagnoses and prescriptions were the same. Both catastrophes were laid at the feet of market failure (read: the capitalist system is inherently flawed and prone to failure).