It was an international economic recession that lasted from 1 year for some countries to 10 years for others. It is considered the biggest recession in modern history.
It was started by a stock market crash in the US on August 24, 1929.
It had worldwide effects affecting international trade, personal incomes, prices and profits.
There was a negative impact mainly in cities with heavy industry. Construction froze and agricultural as well as livestock operations declined. Still, land exploitation operations such as mining and timber suffered due to lack of demand.
Experts say it was not the result of a sharp drop.
The large investments that came from large borrowings led to large debts resulting in the collapse of banks as depositors withdrew their money fearing a greater loss. Losses in consumer income reduced demand, long periods of drought hit trade, and this raised unemployment.
The decline of the American economy dragged other countries along.
[Source: en.wikipedia.org]
