The Great Depression

The Great Depression was a worldwide economic downturn that began in 1929 and lasted until about 1939. It was the longest and most severe depression ever experienced but the industrialized western world. Although the Depression originated in the United States, it resulted in drastic declines in output, severe unemployment, and acute deflation in almost every country of the globe. But its social and cultural effects were no less staggering, especially in the United States, where the Great Depression ranks second only to the Civil War as the gravest crisis in American history.

What was life like?

People played board games, puzzles, baseball, and listened to the radio (if they had one) to get their minds off the depression. Many farmers ran out of money and lost their farms. Those who didn't had to cope with the, "dust bowl", huge clouds of dust that flew across the great pains of American and Canada. These dust particles would enter the home and cause bad living conditions. many children left school to help their families by working. Children between the ages 10-18 worked in factories, mines, or farms. Women worked seasonal jobs, but usually had to quit because men were dominant.

Failures

The fall of the economy caused bank failures, many businesses to perish, and brought a rapid rise to the crime rate, suicide rate, and malnutrition rate. Birth rates dropped below the replacement level for the first time in American history. Divorce rates also dropped sharply since it was too expensive to pay legal fees and support two households. This caused many women to start working and husbands to leave their families.

Why was Germany hit the hardest during the Great Depression?

In 1929 as the Wall Street Crash led to a worldwide depression. Germany suffered more than any other nation as a result of the recall of US loans, which caused its economy to collapse. Unemployment rocketed, poverty soared ad Germans became desperate.

Explain what Germany had to agree to by signing the Treaty of Versailles?

The Treaty of Versailles is one of the most controversial armistice treaties in history. The treaty's so-called "war guilt" clause forced Germany and other central powers to take all the blame for World War I. This means a lot of territories, reduction in military forces, and reparation payments to Allied powers.

How was New Zealand affected by the depression?

In NZ, the effects of the crash were not immediate. But from 1930 export prices began to plummet, falling 45% by 1933. To a country overwhelmingly dependent on agricultural exports, this was devastating. By the end of 1930 urban businesses and manufacturers were feeling the flow-on effects. Demand for their goods and services fell, as did the prices they charged. Unemployment rose to 12% of the registered workforce in 1933, and those lucky enough to keep their jobs often found their wages slashed by as much as 20%.