The paper "Australia in the Great Depression" is an outstanding example of a Macro & Microeconomics essay. The great depression was an economic disaster that resulted in a turndown in international trade, people’ s income, revenue from taxes, inflated prices, and reduced profits. In other words, there was no money circulating among the people and people could therefore not be able to buy anything. Businesses were therefore not making any money and this meant that there were no jobs in the affected regions. This disaster started on 29th October 1929, a day that came to be known as the Black Tuesday.
On this day, the Wall Street stock market in New York also crashed and such is an indication of a striking decline in the stock prices across various areas of the stock market. Under normal circumstances, such crashes may be caused by overvaluations of the current stocks or anxiety and panic among the investors as a result of social or political events. However, in the case of the Great Depression, the exact cause is debatable and people have come up with many theories over the cause of the great depression.
However, there is one common compromise that one major event that led to the depression was panic due to a large scale lack of confidence and this led to a deflationary effect on prices and income. Australia, just like the United States also suffered the Great Depression. In Australia, the Great Depression led to the fall of various commodity prices, high levels of unemployment, and a reduction in the population of the big cities in Australia as those who could not get employment went back to the rural areas to look for agricultural work.
During that time, Australia had also incurred a lot of debts due to the infrastructural development work that it was carrying out during the 1920s plus the reduced economic activities saw a decrease in revenue collections.
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