Q3. What were the major effects of Great Depression?
The Great Depression caused massive increase in unemployment. It also had great effect on industry as well as industrial production. A large no. of banks collapsed causing millions of people to lose their life savings. Gross National Product dropped by one third.
Fall in agricultural prices led to farmers abandoning their fields. Mass migration patterns emerged during the Great Depression, with populations shifting from rural areas to urban centers. Lack of jobs in urban centers led increase in crime and societal evils like prostitution and trafficking. Many people who survived the Great Depression would remain frugal throughout the rest of their lives, wary of banks, apt to hoard food, and suspicious of the stock market.
Protectionism measures and increased tariffs caused huge rise in prices of certain commodities further causing fall in international trade. It gave a further boost to Fascist tendencies and national chauvinism. Fascist countries invested heavily in arms industry which laid the foundation for Second World War.