1 – The Great Depression was a dramatic, worldwide economic calamity which started in 1929 and lasted until the late 30s. Most people believe it began with the U.S. stock market collapse of October 1929. By 1932, U.S. stocks were only worth 20% of what they were prior to the crisis, and 1 year later, almost half of all Unites States banks had failed.
2 – By 1935, roughly 750,000 farms had been lost to bankruptcy or distressed sales. European countries, debilitated by the debt they had accumulated due to World War 1, dealt with the severe depression, and a sovereign debt crisis ultimately emerged.
3 – In Germany, for example, unemployment reached 25% and among other things, this economic disaster led to Hitler’s Nazi party becoming the top political actor after the 1932 elections. Worldwide trade was devastated by the Great Depression, with countries engaging in so-called trade wars by limiting imports, and by the same year 1932, global trade crashed to half of the pre-crisis volume.
4 – Unfortunately, trade wars degenerated into an actual armed conflict which caused over 60 million deaths – World War 2. Make no mistake, most wars have been caused by economic factors to a very large degree. Let’s learn from the past and not let this happen again.
