1. High unemployment: The Great Depression led to soaring levels of unemployment, reaching nearly 25% in the United States. Many people lost their jobs and struggled to find new ones. This loss of income had a significant impact on individual households and families.
2. Declining production and business activity: The Depression caused a drastic decline in economic output and business activity. Many companies went bankrupt or had to shut down, resulting in reduced production levels and a general economic slowdown.
3. Bank failures and financial instability: The economic crisis led to numerous bank failures as people were unable to repay their loans and make withdrawals. This created widespread panic, causing depositors to rush to withdraw their money from banks, further exacerbating the financial instability.
4. Decline in international trade: Global trade suffered a severe decline during the Great Depression. Protective trade policies were introduced by many countries, leading to a decrease in imports and exports, worsening the economic conditions worldwide.
5. Hunger and poverty: The Great Depression resulted in widespread poverty and deprivation. Many people faced extreme hardships, were unable to afford basic necessities, and suffered from malnutrition. Soup kitchens and breadlines were set up to provide food for those in need.
6. Housing crisis and homelessness: Foreclosures and evictions increased dramatically during the Depression due to people's inability to pay their mortgages or rent. This resulted in a surge in homelessness, with many families living in shantytowns and on the streets.
7. Psychological and emotional impact: The Great Depression had a profound psychological and emotional impact on individuals and communities. Many people experienced depression, anxiety, and a sense of hopelessness, leading to a decline in overall well-being.
8. Political repercussions: The economic crisis of the Great Depression fueled political unrest and led to the rise of extremist ideologies, such as fascism and communism, in various parts of the world. It also contributed to significant changes in government policies and social support systems.
What were the short term effects of the great depression? List them
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