The Great Depression
History: KS3, topic 18.1.2
The Great Depression
During the Great Depression, millions lost their savings and jobs. Countries across the world were affected by this depression.
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Impact on America
- During the Great Depression, US production dropped.
- The production of cars dropped by 80%.
- Collapse of banks.
- By 1931 AD, nearly 2,300 banks had closed.
- 14 million people were unemployed.
- Workers were made ‘redundant’.
- The unemployment rate was 25%. Those that were employed had low wages.
- If you were lucky enough to be employed you had very small wages.
- Wages decreased to the point where workers were starving.
Impact on Britain
- Investors withdrew money from Britain.
- The British government decided to combat the depression by increasing the government’s budget.
- This meant raising taxes and cutting benefits. This was very unpopular.
- The industrial areas in the north of Britain were very badly affected by the Great Depression.
- 20% of the industrial workforce in the north was unemployed.
- In 1932 AD ‘hunger marches’ swept across Britain.
Impact on Germany
- Germany was relying on US loans to pay reparations.
- As a result, Germany was badly impacted by the Wall Street Crash and the Great Depression.
- By 1933 AD, 40% of workers were unemployed.
- Many people in Germany lost their savings, jobs and homes.
- Families lived in poverty.
Test yourself on The Great Depression
What was the unemployment rate in the USA?
What percentage of the industrial workforce in the north of Britain was unemployed?