The Cause And Effects Of The Great Depression

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The Great Depression was a global economic downturn which changed the economic and social fabric of the developed world. With it lasting from the crash of Wall Street in 1929 to the start of the Second World War, the effects were felt all over the developed world.

There were many factors involved in the commencement of the Great Depression, with the fall of the New York stock exchange being the trigger.1 The leading causes for the world wide depression were over production, especially in the farming industry, which affected the economy because after the First World War the technology changed, mechanising the farming industry and making some jobs redundant. The farmers had to borrow money in order to purchase the machines. In addition, the
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But according to Dr Stefan Petrow this number was inaccurate because many people did not claim government assistance from which this statistic was taken. People wanted to struggle on their own and were too proud to receive charity.5 This government assistance was commonly known as “Susso” or the “dole” and was comprised of food, clothing and shoes but was not monetary6. Many Australian men were roaming the nation looking for work but were quite often moved on from community to community as there was no work. The government tried to reduce unemployment by initiating projects for the unemployed to take part in. Two of the better known of these projects are the Sydney Harbour Bridge that provided employment to the people of New South Wales during the hardest time of the depression (see Page 4). The other well known project is the road up to the summit of Mount Wellington (Kunanyi) in Tasmania (see page 6)7. The effects on Australia was devastating with people losing their houses to the bank due to lack of work and lack of income. Without a home they were forced to live in shelters that were well below standard. They had poor heating and poor sanitation8. This quote from a person that lived during the depression explains the hardship and kind of lives that were lived by the people of …show more content…
In thousands and thousands of homes fathers deserted the family and went on the track (became itinerant workers), or perhaps took to drink. Grown sons sat in the kitchen day after day, playing cards, studying the horses [betting on horse racing] and trying to scrounge enough for a threepenny bet, or engaged in petty crime, mothers cohabited with male boarders who were in work and who might support the family, daughters attempted some amateur prostitution and children were in trouble with the police. Lowenstein, Wendy. Weevils in the Flour: an oral record of the 1930s depression in Australia , 20th anniversary edition, Scribe, Fitzroy, Melbourne, Australia, p.2, 1998. as found in

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