What ultimately ended the great depression?

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Page last updated: 21/11/2022

What ultimately ended the great depression?

In this post, the question “ what ultimately ended the great depression” will be answered, the cause of great depression, the effect of the great depression, life during the great depression, events leading to the end of the great depression and some of the FAQs concerning the topic.

What ultimately ended the great depression?

The end of the great depression was the result of the following reasons:

  • Second world war
  • The rise in employment opportunities
  • Shrink in government spending
  • Rise of private investment and share
  • Attack at Pearl Harbour
  • The signing of a new deal
  • Increase in the Forbesportunity

Great Depression

It was a phase of crash in market stock in 1929 and went worse in the 1930s. The phase is a worldwide economic turndown that hit so badly and was considered as the longest and most severe type of depression ever experienced by the Western World countries. Some fundamental changes in the economic institution have sparked or triggered the downturn of the economy. 

Despite its major consequence or the triggering point in the USA, the effect of it was experienced worldwide such as loss of employment, a drastic drop in output, deflation etc. 

For the people of the USA, it is the harshest or most severe adversity they have ever experienced after the civil war.

Causes of the Great Depression

The Great Depression was caused by different events that had happened in the USA, initially beginning from the fundamental economic changes that have happened in major economic institutions, economic theory and macroeconomic policy.

Following are the major events that have happened resulting in Major Depression in the USA that has resulted in drastic consequences all over the world.

  • Panic in banking and failure of banks in the US  and around the world from 1930-1933. 
  • Drastic drop and decline in the spending that results in low production
  • The decline in the money supply caused by US Federal Reserves
  • Great of Crash of 1929
  • Maintained of Gold Standard
  • Smoot Hawley Tariff Act: the act imposed a steep tariff on most of the industrial and agricultural goods thus resulting in retaliatory measures that lead to reduced output as well as contraction of global trade.
  • International lending and trades

These are some of the reason due to which America, as well as the rest of the world, have to undergo severe impact of the great depression

What ultimately ended the great depression?

Facts about the Great Depression

Some of the known facts about and during the phase of the Great Depression in the USA are:

  • It began on a black Thursday and consequently a drastic fall in stock price and reluctance to increase the supply of money.
  • Around 15 million American went jobless, unemployed and half of US banks failed by 1933.
  • 90% of American households went or ran with no stock in 1929 unknowing about the Great Depression impact on the market crash.
  • Those who remain employed through the phase of the Great Depression had felt and undergone the income shrink by a third. 
  • The stock market lost around 90% of its value during the Great Depression period
  • One out of every four people remained unemployed and are out of work.
  • Million people migrated and left from the Dust Bowl region and moved to California. 

These are some of the facts about the Great Depression period. 

Effects of the Great Depression

Some of the effects of the Great Depression that has spread in the US itself as well as to rest of the countries are:

  • The economic crises have spread from the USA to Rest of the World resulting in trade decline.
  • There was a noticeable and abrupt decline in the living standard of people across the world.
  • Demand, as well as supply for goods and services, drop-down resulting in unemployment even in highly industrialised countries.
  • Industrial production also dropped down resulting in low Gross Domestic Products and widespread unemployment.
  • Abandonment of Gold Standard.
  • There was an expansion of welfare states, labour unions and their communities in the USA as well as in the rest of the countries.
  • Establishment of US Security and Exchange Commission to increase government’s involvement and supervision in financial markets.
  • There were implementations of providing economic relief and reforms thus increasing the role of the federal government. 
  • Lack of access to basic and primary health care facilities 
  • Unemployment and loss of jobs for many people resulting in a shortage of money.
  • Low life expectancy estimated to be around 58-62 years old.
  • Increase in poverty and starvation
  • Poor living standard, unhygienic and unhealthy living condition
  • Dust bowl and resulting respiratory failure and illnesses. 
  • Familiar and major illnesses such as cancer, pneumonia, influenza and cardiac arrest
  • Tuberculosis and death of it
  • Increase in the suicide rate
  • Reduce in-car and vehicle-related accidents
  • Excessive stress and pressure in people

Life during the Great Depression

During the time of great depression, life was challenging, gruelling and difficult for the people from all classes, especially those belonging to the lower strata of the society.

  • Many farmers and peasants lose their farm and plot.
  • Drought and over-cultivation in certain areas.
  • Creation of dust bowl in certain areas of MidWest
  • Much fertile soil and plot lose their fertility.
  • Many peasants remained unemployed
  • People have migrated to other parts of the USA such as California in search of a job.
  • Many people remain homeless and others move to shanty dwellings.
  • Unhygienic and unhealthy living condition and surroundings.

These are the living conditions of people during the time of the Great Depression which has been challenging and difficult to live with and survive through.

End of the Great Depression

Despite the plight of the Great Depression that people in the United States underwent as well as the people around the world. Some events led to the termination or end of this great depression that had caused a tremendous effect on all domains of life of an individual as well as to the country as a whole.

Election of the new president

Franklin D Roosevelt was appointed as the new president of the country, and he brought in new federal government programs that help in combating with the challenge of the Great Depression and brought an end to it.

Signing new deal

Roosevelt also signed a new deal that aimed to create new agencies throughout lifetime aimed to create more job opportunities, build union and communities among the different social classes and to provide them employment insurances and benefits. All these recovery programs were aimed to uplift the economy from the great depression and to safeguard the economy from further economic decline and depression.

World War II

Many people believe that it was World War II that resulted at the end of the depression where more than 12 million American had to leave their job and were sent to the military and many were also employed and put into defence-related jobs and tasks. Those who remained unemployed through the phase of great depression finally were put into some task and taken care of.

Massive spending during the time of war

It was often believed by many people that much of the spending that was made during the period of war has led to the end of the great depression.

Shrinkage of government spending

Post Great Depression, the spending of the government collapsed, tax rates were abolished and the price control was increased. This increases the private economy.

Private spending and investment went on rising

The increase in private spending and investment resulting in the improvement of people’s living standard and condition led to the end of the great depression. 

Republican Victory

The absolute and sweeping victory of Republicans in the election of 1946 has brought an end to the wartime.

Increase in the job opportunity

With the increase in job opportunities for the masses such as military jobs and the army, it led to the end of the great depression where people were battling with the economic decline, poor living conditions, loss of jobs and unemployment. 

These are the major reasons for the end of The Great Depression which is primarily believed to be the result of the second world war that has hit across the world, along with this major event, increase in job opportunities, massive spendings in war, shrinkage of government spending and signing of the new deal. Owing to these events and conditions, the Great Depression that has disturbed all across the world has come to an end.

FAQs: What ultimately ended the great depression?

How did the Great Depression end?

The great depression ended with a significant reduction in the spending of government along with the shrinkage of government that has resulted at the end of the Great Depression. 

What ended the Great Depression Quizlet?

The beginning of World War two and the attack that was targeted at Pearl Harbor that made the US engage in the fight has led to the end of the Great Depression.

Who got rich during the great depression?

Paul Getty was believed to earn the maximum benefit during the great depression since he had an oil empire earning around 500,000 dollars.

How do you survive a depression or recession?

Five of the saving tips that helps in the surviving recession are:

Saving for an emergency fund
Establishing a budget and pay down the debts
Downsizing to a simple and minimalistic lifestyle
Splitting the income and spending
Taking a share in the investment.

What finally pulled the US out of the depression?

It was World War II that has occurred as a result of the Great Depression and has finally taken off the United States from the Great Depression.

What major events triggered the Great Depression?

The Great Depression is known for the worldwide economic turndown in the fall of 1929. It was believed to be caused by a sudden and an abrupt fall or crash in American Stock Market in the year 1929 October widely known as the Black Tuesday.

How many people died in the Great Depression?

It was estimated that almost 7 million people died during the period of the Great Depression due to different underlying conditions such as illnesses, starvation, poverty and suicide.

What was the number one cause of death during the Great Depression?

The leading cause of death during the period of the Great Depression was familiar with Diseases and Illnesses such as cancer, tuberculosis, influenza, pneumonia and respiratory failures.

What bad things happened in the Great Depression?

Some of the bad things that had happened during the period of the Great Depression are economic crises, loss of the stock market, Dust Bowl and its health effect, economic decline and unemployment.

Conclusion

In this post, the question “ what ultimately ended the great depression” was answered, the cause of great depression, the effect of the great depression, life during the great depression, events leading to the end of the great depression and some of the FAQs concerning the topic.

https://www.encyclopedia.com/economics/encyclopedias-almanacs-transcripts-and-maps/end-great-depression

https://history.state.gov/milestones/1921-1936/great-depression

https://www.history.com/topics/great-depression/great-depression-history

Bibliography

Amadeo, K. (2020). The great depression, what happened, what caused it and how it ended. the balance. https://www.thebalance.com/the-great-depression-of-1929-3306033

Ferrara, P. (2013). The Great Depression Was Ended by the End of World War II, Not the Start of It. forbes. https://www.forbes.com/sites/peterferrara/2013/11/30/the-great-depression-was-ended-by-the-end-of-world-war-ii-not-the-start-of-it/?sh=747f1dd857d3

Folsom, B. W. (2010). What Ended the Great Depression? fee. https://fee.org/articles/what-ended-the-great-depression/#:~:text=On%20the%20surface%2C%20World%20War,end%20of%20the%20Great%20Depression.&text=Those%20war%20jobs%20seemingly%20took,that%20ended%20the%20Great%20Depression.

Moore, S. (2014). What Ended the Great Depression? the heritage foundation. https://www.heritage.org/trade/commentary/what-really-ended-the-great-depression