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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Their money problems stemmed from falling farm prices and the need to purchase expensive machinery.
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The owners often bought better machinery with the money, which further reduced the need for farm workers.
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Not only were farmers in the 1920s facing an economic depression, they were also up against an environmental crisis.
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The Soil Conservation and Domestic Allotment Act paid farmers to plant clover and alfalfa instead of wheat and corn.
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Detailed explanation-1: -The economic trends of the 1920’s that helped cause the Great Depression were, the people’s extreme faith in the economy. Everyone was spending their money freely, and believing they would get paid back. Which left to the inevitable demise of the economy failing, and the people losing their money with no savings.
Detailed explanation-2: -As international prices crashed, prices in India also plunged. Between 1928 and 1934, wheat prices in India fell by 50 per cent. Peasants and farmers suffered more than urban dwellers. Though agricultural prices fell sharply, the colonial government refused to reduce revenue demands.
Detailed explanation-3: -Real GDP fell 29% from 1929 to 1933. The unemployment rate reached a peak of 25% in 1933. Consumer prices fell 25%; wholesale prices plummeted 32%. Some 7, 000 banks, nearly a third of the banking system, failed between 1930 and 1933.
Detailed explanation-4: -Among the suggested causes of the Great Depression are: the stock market crash of 1929; the collapse of world trade due to the Smoot-Hawley Tariff; government policies; bank failures and panics; and the collapse of the money supply.