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The Debt Bomb

In: Business and Management

Submitted By brownc531
Words 497
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The Debt Bomb After reading the article “The Debt Bomb” by Louis Hyman, I will say that the Great Depression was a serious all around economic depression in the years 1929 through 1939 going into World War II. The timeline or timing of the Great Depression was different across nations, but in most countries it started in about 1929 and went on from the late 1930s through the early 1940s. It was the most widespread, longest and deepest depression of the 20th century. In the 21st century, the Great Depression is normally utilized as an example of how far the world's economy can come down. The depression started in the U.S., starting with the stock prices falling that began around September 1929 and became worldwide news with the stock market crash in October 1929. The Great Depression had demolishing effects in countries poor and rich. Tax revenue, personal income, prices and profits were dropped while international trade plunged by more than 45%. Unemployment in the U.S. rose 20% to 25% and in some countries rose as high as 30% to 35%. Cities from all around the world were hit very hard, especially those dependent on industry that was very heavy. Construction was basically stopped in many countries. Rural areas and farming suffered as crop prices fell down by approximately 55% to 60%. Facing demand with very little alternate sources of jobs, areas dependent on primary sector industries such as logging, cash cropping, and mining suffered the most. Some economies started to recover by the mid-1930s. In many countries, the negative effects of the Great Depression went on until the start of World War II. If we compare the 1930’s with the Crash of 2008 where gold went through the roof, it is clear that the US dollar on the gold standard was completely different to the free-floating US dollar currency we have today. Where many people have seen and experienced inflation...

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