The paper "The Great Depression of the 1930s" is a perfect example of a macro & microeconomics case study. During the 1930s the world economy experienced a great downfall. It was hit by The Great Depression and it was very different from the normal depression that the world had experienced to date. The Great Depression had a larger magnitude as there was around a 30-50% drop in global production levels, the unemployment rate was around 25%in powerful countries like Britain and the United States and as high as 40%in Germany.
The effects were so large that it lasted roughly around 10 years from 1929 to 1939. The Great Depression is also regarded as one of the major reasons for World War-2 as governments became ineffective and people were left to despair (Hamilton, 2007, p. 18). This assignment highlights the major reasons or causes for The Great Depression in the World economy and special emphasis had been given to its severe effects on Germany in contrast to other nations of the world. The same has been discussed as under. The Great Depression showed its footprints in the year 1929 and lasted roughly till 1939.
Its impact was more severe in the United States and Europe, while it had lesser effects in Japan and Latin America. Industrial Production of the United States declined by 47% and GDP by 30% while the unemployment rate rose to 20%. Similarly, Great Britain struggled with a low growth rate and a high unemployment rate as well. However, it stopped declining after its abandonment of The Gold Standard in 1931. The impact of The Great Depression was severe on Germany as its industrial production suffered almost equal to the United States and the unemployment rate rose to a massive 40% (Hamilton, 2007, p.
12) It is to be noted that there is no single major cause of The Great Depression but it was a result of a combination of some economical factors, some political factors and some social factors. Some of the major reasons or causes for the same had been discussed as under.
Aldcroft, D. (2006). Europe’s Third world. The European Periphery in the Interwar Years. Aldershot: Ashgate Publishing Limited
Hamilton, J. D. (2007). Monetary Factors in the Great Depression. Journal of Monetary Economics, 13, 1-25
Koliopoulos, J. S. & Veremis, T. M. (2002). Germany – The Modern Sequel. From 1831 to the present. London: Hurst & Company
Koliopoulos, J. S. & Veremis, T. M. (2010). Modern Germany. A History since 1821. Chichester: John Wiley & Sons Ltd
Raupach, H. (2006). The impact of Great Depression on Eastern European states. Journal of Contemporary History, 4 (4), The Great Depression, 75-86