How Did The World Overcome The Great Depression?
Editorials News | May-05-2021
How rightly it has been quoted by President Franklin Roosevelt in the inaugural ceremony of 1933 that "the only thing we have to fear is fear itself"
This year the entire world especially the USA was facing the years of the great depression. Till 1929 October the market was stable and touching the pinnacle. Several investors started believing the fact that the end to these good days will never come. This thinking bought the market to a crash in 1929.
Well, these years were proven out to be bad for the economy of the World. Though do we know the depth of this matter from how It started or how did it come to an end? It all started in the year 1929. It was the month of October when things took a turn and started getting worse, so worse that no one expected it to be. 24th October 1929 was marked as Black Thursday. Within just 4 days the market fell by 22%.
A huge decline in GDP was seen which was estimated to be around 30%. An effect of selling was witnessed in which the index fell nearly 90% and wasn't able to recover for almost 25 long years. The market just crashed. All around there was a hue and cry amongst people as they had to go with huge financial losses. People had lost their lives and their incomes. Around 7 million people had lost their lives due to starvation as well as due to financial debts and a burden on them. Unemployment started becoming a common problem during this era. In the year 1933 unemployment problem touched its peak. Almost 25% of people were unemployed. This huge problem of instability, as well as this depression, finally ended when World War 2 marked its end.
During world war 2 the army and military had opened job opportunities to the people which turned out a good deal for them. Almost 12 million people had again been employed and could earn their living amongst the 17 million unemployed. A number of Americans believed that President Herbert Hoover was responsible for this crash. The world experienced this, it took 10 long years for all countries facing this to jump back to good economic conditions and stability.
By- Aanya Pandey
Delhi World Public School