Explain the two factors responsible for the Great Depression in the wo

1.	Explain the two factors responsible for the Great Depression in the world in 1929.
Answer» A worldwide economic crisis occurred in 1929 in many countries and lasted till 1934. It started in USA and engulfed many countries of the world except Russia. (i) The American industry had got a great boost during the First World War of 1914-1918.They continued producing different articles even after the war, which created a glut in the market. As a result, exports fell and the home market could not absorb all the products.It led to catastrophic decline in production, employment, incomes and trade. There was unemployment as factories were closed, workers laid off, production went down by half. (ii) The greatest sufferer was the agricultural region. During the war, America had become the greatest supplier of wheat along with Canada and Australia. But after the war the Eastern European countries revived their wheat production. There was a slump as in industries,prices fell steeply. Farm produce rotted due to lack of buyers.

Explain the two factors responsible for the Great Depression in the world in 1929.

Answer»

A worldwide economic crisis occurred in 1929 in many countries and lasted till 1934.

It started in USA and engulfed many countries of the world except Russia.

(i) The American industry had got a great boost during the First World War of 1914-1918.They continued producing different articles even after the war, which created a glut in the market. As a result, exports fell and the home market could not absorb all the products.It led to catastrophic decline in production, employment, incomes and trade. There was unemployment as factories were closed, workers laid off, production went down by half.

(ii) The greatest sufferer was the agricultural region. During the war, America had become the greatest supplier of wheat along with Canada and Australia. But after the war the Eastern European countries revived their wheat production. There was a slump as in industries,prices fell steeply. Farm produce rotted due to lack of buyers.

Explain the two factors responsible for the Great Depression in the world in 1929.

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