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The Great Depression

The crisis began in the autumn of 1929 year. It is time of overproducing and low purchasing power. Most sever is the crisis in the USA. For 3 years production in USA reduced by half. The production of cars reduced 12 times. In about 50 years this is the fifth crisis in the capitalist world. In October 1930 year “New York Times” wrote: “people stand and wait, almost like forever, they wait for soup, work…, knowing that tomorrow they will wait again.” In the beginning of 1933 year there were 17mil. people unemployed in the USA, and those who worked were hired for 1 or 3 days at most. Those people and their families were almost the half of USA`s population. The crisis reached also the farm, the prices of agricultural production suddenly fell. For the farmers it was better to burn the corn than to sale it. During 1933 year the USA government started destroying animals and agricultural production, because they thought that this way the prices will raise.

The economic crises reached England, France and Germany. In England in 1931 year the unemployed were 3 million people. In France the crises lasted till 1936 year. The industry in Italy fell to 30%. German industry was loaded up to 30-35% of its limits. The quantity of unemployed during 1932 year reached 9 million people. In the beginning of 1933 year the economic crisis was in its peak. The capitalist world began to overcome this crisis really slow, but in 1937 year in the USA began a new economic crisis.

The world's economic crisis - The Great Depression.

About the Author: The author - Veronika Porozhanova, is a publisher in the website Economics and Politics.

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