Stating which country you feel suffered most from the depression.

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Stating which country you feel suffered most from the depression.

The “great depression”, the historians call it as one of the disaster in 20 century and also the event, which led in to the world war two. After world war one, due to the fact that the war had placed in Europe, the allied USA didn’t got much affect as the other allies like Britain, Russia, and especially France and also the center power such as Germany. As a result, after 1924, European economies were highly dependent on American loan and the fact in 1920s, American economy boomed which led Americans invest on equity and bond. For example, $4 billion went to Germany. However in 24th October 1929, New York Stock Exchange crashed and the investors all at once terminated these loans. Therefore, the NYSE collapse not only abruptly affected US but also “the world economy”.

First of all the consequence of the depression in the USA was innumerable in the term of economy and business. By July 1932 average share prices had fallen to just 1/8 of the peak September price. In other word, $8 invested in 1929 was worth just $1 by 1932. Moreover between 1929 and 1932, 25,000 American companies went bankrupt and industrial production dropped by 50 per cent. In detail, over 5000 banks collapsed because companies and individuals could not afford to pay their loans. Therefore this consequence suggests that the economy boom was based on shaky foundation and it led USA into more than 10-year recession.

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Furthermore not only in aspect of Economy, it miserably affected lives of Americans. By July 1933 up to 15 million Americans were unemployed (July 1926-Unemployment drops to 1 million), while the average family income fell from $2300 to just $1600 a year. The fact that the employment rate rose up to 15 times make us indicate that how harsh the impact of this event was. In addition, the farmer and black agricultural workers did not benefit from the 1920s boom years and this disastrous crisis made their situation even worse because export had dried up due to American’s protective-duties ...

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