THE GREAT

DEPRESSIO
N
By- Avika Agarwal and
Somya Gupta (10th A)
 CONTENTS
TABLE OF
01 What was The Great
Depression?

02 What caused this great

depression?

03 What was its effect on Indian

economy?

04 What was its effect on US

economy?

05 What was its Global effect?

 What was The Great Depression?
The Great Depression refers to a severe and prolonged economic downturn that occurred
globally during the 1930s. It was the most significant economic crisis of the 20th century and
had far-reaching consequences on societies, economies, and politics around the world. The
Great Depression originated in the United States but quickly spread to other countries, leading
to a widespread economic recession and high levels of unemployment.
 What caused this great depression?
Several factors contributed to the causes of the Great Depression:
● Stock Market Crash: The Great Depression was triggered by the October 29, 1929 stock
market crash, known as Black Tuesday. 
● Overproduction and Underconsumption: In the years leading up to the Great Depression,
there was a period of rapid industrialization and increased productivity. However, this led to the
overproduction of goods, creating a situation where supply exceeded demand.
● The decline in Agricultural Sector: The agricultural sector was already facing difficulties in
the 1920s due to overproduction, falling prices, and large debts.
● Protectionist Trade Policies: In response to economic difficulties, many countries implemented
protectionist trade policies, including high tariffs and import restrictions, to safeguard domestic
industries and jobs. 
● Global Economic Factors: The Great Depression was a global phenomenon, and international
economic factors played a role. 
 What was its effect on Indian economy?
Here are some of the effects of the Great Depression on the Indian economy:
● Decline in Exports: India was heavily dependent on agricultural and raw material
exports at the time. The global economic downturn resulted in a sharp decline in demand
for these commodities, leading to a significant drop in export revenues.
● Industrial Slowdown: The Indian industrial sector also suffered during the Great
Depression. Reduced demand for manufactured goods, both domestically and
internationally, led to decreased production levels and plant closures.
● Fall in Agricultural Prices: Agricultural prices in India plummeted due to reduced
global demand and oversupply. 
● Financial Instability: The Great Depression had a significant impact on India's financial
system. Many Indian banks had close ties to British banks, which were themselves hit by
the crisis.
● Government Policy Responses: The Indian government implemented various measures
to mitigate the impact of the Great Depression. It imposed import controls and tariffs to
protect domestic industries and jobs, leading to a rise in protectionism.
● Rise of Nationalism and Independence Movement: The economic hardships faced
during the Great Depression played a role in shaping India's nationalist and independence
movements.
 What was its effect on US economy?
The Great Depression had a profound and lasting impact on the United States. It was a
period of economic hardship and social upheaval that affected various aspects of American
society. Here are some key effects of the Great Depression on the United States:
● High Unemployment: The Great Depression resulted in a staggering increase in
unemployment rates. At its peak in 1933, the unemployment rate reached around 25%.
Millions of Americans lost their jobs as businesses closed down or downsized due to the
economic downturn.
● Poverty and Homelessness: The economic crisis caused by the Great Depression
plunged many Americans into poverty. Families struggled to make ends meet, and
homelessness became a widespread issue.
● Bank Failures and Financial Instability: The Great Depression led to numerous bank
failures. The collapse of the banking system eroded public trust in financial institutions,
causing people to withdraw their savings en masse
● Decline in Industrial Production: The manufacturing and industrial sectors experienced
a sharp decline in production during the Great Depression. Businesses faced reduced
demand for their products, which led to factory closures, layoffs, and reduced working
hours.
● Shift in Public Perception and Values: The Great Depression had a profound impact on
American society's values and perceptions. It generated a sense of economic insecurity
and a distrust of unregulated markets. 
● Long-Term Economic Changes: The Great Depression brought about long-lasting
changes in the American economy. It led to the implementation of financial regulations,
such as the creation of the Securities and Exchange Commission (SEC) to oversee the
stock market.
 What was its Global effect?
The Great Depression had a significant global impact, extending beyond the borders of the
United States. It was a worldwide economic crisis that affected numerous countries and
regions.
The global effects of the Great Depression were far-reaching, impacting economies,
societies, and political landscapes around the world. It served as a pivotal event in shaping
the trajectory of international relations, economic policies, and global cooperation in the
decades that followed.
Global effect

USA
West-
Europe The major effect of
The Great
Depression around
the whole Globe

West-
South
Affrica Australia
THE GREAT
DEPRESSION
“The bank is something more than men, I tell you. It's
the monster. Men made it, but they can't control it..”
—John Steinbeck (2016). “The Grapes of Wrath”, p.27, Hamilton Books
THANK
YOU!