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The effect of the Great Depression was huge across the world. Not only did it lead to the New Deal in America but more significantly, it was a direct cause of the rise of extremism in Germany leading to World War II.
What caused the Great Depression was a combination of domestic and worldwide conditions. There is no agreed upon list of all its causes.
With the Stock Market crash and the fears of further economic woes, individuals from all classes stopped purchasing items. This then led to a reduction in the number of items produced and thus a reduction in the workforce. As people lost their jobs, they were unable to keep up with paying for items they had bought through installment plans and their items were repossessed. More and more inventory began to accumulate. The unemployment rate rose above 25% which meant, of course, even less spending to help alleviate the economic situation.
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Did the wall street stock market collapse of 1929 led to the great depression?
True
What event in 1991 led to an economic crisis in Cuba?
The collapse of the Soviet Union led to the economic crisis of 1991 in Cuba. This was due to the close ties between Cuba and the Soviet Union.
What was the economic colapse following world war 1?
The economic collapse that came following World War 1 was in Germany. Having lost the war there was unrest and a lack of faith in the country as a whole which led to instability.
What economic disaster happened in the 1920's?
The stock market crashed in 1929 which was a cause of the Great Depression.
Where were the underlying conditions that led to the collapse of the US economy?
Big Government
