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What are the effect of great depression on world ? |
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Answer» The economy shrank 50 percent in the first five years of the Depression. In 1929, economic output was $105 billion, as measured by gross domestic product. That\'s the equivalent of $1.057 trillion today. The economy began shrinking in August. By the end of the year, 650 banks had failed. In 1930, GDP shrank another 8.5 percent. Instead, the economy shrank another 6.5 percent in 1931 and 12.0 percent in 1932. By 1933, the country had suffered five years of losses. It only produced $57 billion, half what it produced in 1929. That was partly because of deflation. Prices fell 10 percent per year.New Deal spending boosted GDP growth 10.8 percent in 1934. It grew another 8.9 percent in 1935, a whopping 12.9 percent in 1936 and 5.1 percent in 1937. Unfortunately, the government cut back on New Deal spending in 1938, and the depression returned. The economy shrank 3.3 percent. Despite growing 8 percent in 1939 and 8.8 percent in 1940. The next year, Japan bombed Pearl Harbor, and the United States entered World War II. For specifics, see GDP by Year 1940 1929 |
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