The Great Depression began around 1929 and lasted till the mid-1930s. During this period, most parts of the world experienced a decline in production, employment, incomes, and trade. Agricultural regions and communities were the most affected.
Causes of Great Depression :
(i) Post-world war economy of the world was fragile. Agricultural overproduction was a problem. As prices slumped, farm produce rotted.
(ii) Many countries financed loans from the U.S.
(iii) U.S. overseas lenders panicked at the sign of financial crisis.
(iv) Thus, banks were bankrupt and were forced to close down in Europe and in the US because they were unable to recover investments, collect loans
and repay depositors.
(v) American capitalists stopped all loans.
