the depression ( causes and effects)

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NEWS  Economic Depression: Cause and Effects August 21, 2005 by Michael DiNatale Re co mmen d (7 1 ) Font Size Read comments (11)Share More topics Great Depression | Economic Depression | Fighting Depression  A Look at the Circumstances that Led to the Great Depression At 1100 hours on November 11, 1918, the armistice went into effect, ending the fighting of the First World War and with it the old world monarchies that had ruled Europe for hundreds of years. Russia  had succumbed to a communist revolution in 1917, the great Ottoman and Austria-Hungry Empires were disbanded, and British Empire, once the most powerful country in the world, found it self in massive debt. Unrest and upheaval dominated Europe, and in these uncertain times depression  began.The depression  would spread to the United States almost ten years after it hit Europe. While the stock market  crash of 1929 is often referred to as the starting point of the Great Depression, 20/20 hindsight provides us with the observation that perhaps hints of the coming depression  could be seen. The agricultural industries began to show signs of trouble years before Black Tuesday. New equipment developed during the war years allowed for increased productivity and a larger more efficient harvest. However, with the war over, supply quickly out paced demand. Overproduction of goods caused a drop in prices which provoked farmers to increase production in an attempt to maintain the same level of profits they had grown accustom to. However, this c reated a vicious cycle which drove prices so low that many farmers were no longer able to make enough money to pay for supplies, food or the leases on their property. As a result many farmers defaulted and lost their farms.Right away the crash effected terrible effects on the economic situation in Europe. During the market’s boom in the years previous to the crash large amounts of  investments  had þÿ

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8/6/2019 The Depression ( Causes and Effects)

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8/6/2019 The Depression ( Causes and Effects)

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8/6/2019 The Depression ( Causes and Effects)

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