Describe the effect of the great depression on the world. Who were the worst effected by this depression?
THE great depression began around 1929 and lasted till the mid 1930s. During this period, there w’ere catastrophic decline in production, employment, income and trade. Agriculture regions and communities were worst affected due to the great fall of agro prices.
- In the US, farmers could not sell their harvests, household, were ruined and business collapsed. Many households in the US could no repay their loans due to fall in their income and were forced to give up their homes, cars and other consumer durables. Unemployment increased rapidly and people had to travel a long distance in search of work.
- The great depression had wider effects on society, politics and international relations and on peoples’ needs proved more enduring. The depression immediately affected Indian trade. India’s export and import halved between 1928 and 1934.
- Peasants and farmers suffered more than the urban dwellers. Though agriculture fell sharply, the colonial Government refused to reduce the revenue demand. Peasants producing for world market were the worst hit. Across India peasants indebtedness increased.