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Causes Consequences

The document summarizes the causes and consequences of the Great Depression. Among the key causes were the stock market crash of 1929, bank failures, reduced consumer spending, and overproduction outpacing consumer demand due to income inequality. Major consequences included massive unemployment, business failures, homelessness, poverty, and migration. It was only through government intervention like the New Deal that consumption was stimulated and the economy began to recover from the crisis caused by the imbalance of mass production and consumption.

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Shrikant Sadul
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28 views

Causes Consequences

The document summarizes the causes and consequences of the Great Depression. Among the key causes were the stock market crash of 1929, bank failures, reduced consumer spending, and overproduction outpacing consumer demand due to income inequality. Major consequences included massive unemployment, business failures, homelessness, poverty, and migration. It was only through government intervention like the New Deal that consumption was stimulated and the economy began to recover from the crisis caused by the imbalance of mass production and consumption.

Uploaded by

Shrikant Sadul
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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CAUSES AND CONSEQUENCES OF GREAT DEPRESSION

CONSEQUENCES
CAUSES

o Massive unemployment
o Stock market crash(1929)
o Business failures
o Bank failures
o Homelessness and poverty
o Reduction in consumer spending
o Migration and displacement
o Decline in international trade
o Decline in birth rates
o Overproduction and underconsumption
o Mental health issues
o Income inequality
o Rise of extremist ideologies
o Unemployment
o Impact on international relations
o Monetary policy mistakes
o Long term economic changes
o Loss of confidence
o New deal and government intervention
The roles of mass production and consumption in the great depression

Mass production and consumption were central factors in both the causes and
consequences of the Great Depression. The 1920s saw the widespread adoption of mass
production techniques, which greatly improved manufacturing efficiency and lowered
production costs. While this led to increased output and economic growth, it also
resulted in overproduction. Industries were churning out goods at a rate that exceeded
consumer demand. Additionally, despite the economic prosperity of the decade, wages
for the average worker did not keep pace, contributing to income inequality. As a result,
many consumers could not afford to purchase the abundance of goods produced. This
situation of overproduction and underconsumption created a precarious economic
imbalance, laying the groundwork for the stock market crash of 1929 and the subsequent
economic collapse. During the Great Depression itself, reduced consumer spending,
widespread business failures, and increased unemployment further exacerbated the
crisis. It was only through significant government intervention, such as the New Deal
programs, that consumption was eventually stimulated and the economy began to
recover. Thus, mass production and consumption patterns were critical drivers in both
the inception and the prolonged severity of the Great Depression.

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