GROUP I MAINS ECONOMY

THE GREAT DEPRESSION (1929 -1934) WAS ATTENDED BY MOMENTOUS CONSEQUENCES IN THE ECONOMIC AS WELL AS IN THE POLITICAL SPHERE. EXPLAIN.

         In 1929, The great world depression started with the wall Street crisis, had remarkable impact on the Economy and political order of the world. Economic impact led to the problem of poverty and unemployment.

        Many of masses economically they became unemployed as the industries stopped manufacturing of the goods. This also lead to Financial deficit to governments of Germany, U.S.A, France and England. To make better this situation british government had to give up the gold standard and to adopt the policy of devaluation of sterling in 1931.Later All the countries of Europe adopted policy of protection and imperial preference. In American policy of New deal was adopted to face the new economic challenges.

        The problems which was generated by the economic crisis of 1929, was not able to solve by the democracatic form governments, so in some of the Europeancountries dictatorial rule emerged.

       In the political sphere most important change was, the labour government fall in England. People started slogans against capitalism and supporting socialism. Because of this crisis a kind of very practical nationalism emerged in Europe which lastly resulted in both political cum economic rivalry which was the most important cause of the second world war in 1939.