Depression: A time of low economic activity, distinguished from a recession by being prolonged and sustained, characterised by continuing falls in output, high and rising unemployment and companies burdened with unsold stocks because demand is low. (Edna Carew, The Language of Money)
Cause of the Great Depression
The cause of the Great Depression is still heavily debated by economists. The Wall Street Crash determined its timing however was just one factor among many leading to this devastating period in Western history.
Social impact
The impact was devastating in Australia. Before clicking on the links to discover how Australia was impacted, answer the following question:
How do you think the circumstances of Aboriginal Australians changed during the Great Depression?
Click on the button below:
Cause of the Great Depression
The cause of the Great Depression is still heavily debated by economists. The Wall Street Crash determined its timing however was just one factor among many leading to this devastating period in Western history.
- Over-production due to the boom of the 'roaring twenties' where business grew too confident and make risky decisions.
- A fall in export prices and sales due to inflated stock values as a result of this over-confidence.
- A fall in overseas loans leading to a reduction in government capital spending
- A fall in residential construction
- Slow recovery post WWII with one of the world's biggest economies was deliberately slowed leading to an oversupply of goods in the global market.
Social impact
The impact was devastating in Australia. Before clicking on the links to discover how Australia was impacted, answer the following question:
How do you think the circumstances of Aboriginal Australians changed during the Great Depression?
Click on the button below:
Source: http://sydneylivingmuseums.com.au/stories/skint-making-do-great-depression, http://vceausthistory.weebly.com/great-depression.html and http://www.australia.gov.au/about-australia/australian-story/great-depression