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The Great Depression and World War Ii

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The Great Depression and World War II

Twentieth Century Europe

One of the major effects of the great depression was the breakdown of the economy. A few years prior to the developments that led to the great depression, the economy was doing a good job providing jobs to the people and giving them the right amount of purchasing power to buy the things that they need and want. The breakdown of the economy led to a lot of secondary effects. For one, the economic breakdown led to the closing of a lot of businesses and the consequent loss of a lot of people’s jobs.
The loss of the people’s jobs or what they call unemployment in economics led to another wave or series of negative effects such as their inability to pay rent and buy goods that they need. To emphasize the overall effects of the ripple that the economic breakdown created, what it did was it led to the loss of the ordinary citizens’ purchasing power. This proved to be one of the major causes of the worsening of the effects of the Great Depression. Jobs were basically generated because of the presence of the businesses and if businesses were strong, the more likely they are to provide jobs. Unfortunately, during that time, the businesses were not so strong. In fact, they were so fragile and brittle that a lot of ordinary citizens lost their jobs, and because of the considerably lowered purchasing power, a lot of businesses suffered—because the ordinary people did not have the means to make purchases from businesses , which in turn contributed more to the vicious cycle that put the world’s largest economy into a deep state of depression. Even the middle class and the elite citizens got affected by the widespread economic events that happened during the great depression primarily because of the fact that their income also depended on the income of their businesses and unfortunately during that time,

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