Economic Impact of the Great Depression

Every country has its economic standards, and colliding with them, but is never beneficial for the other countries. However, sometimes in some adverse situations, two or more countries may decide to come together and share their economic standards to save their lands from the current and upcoming crisis and keep it strong in the same way as it is at that moment. To analyse the impact of the great economic depression on Germany and many other countries is a very important step. 

Economic barriers are the harming or most damaging agents of a country’s economy, whether it is India, Germany, or any other country. One such extremely unpleasant economic barrier is a great depression. It simply has a small definition, but the effects of the great depression are much more than usual on the economic conditions. The great depression is a phase in the economy of the world or a country where its financial status starts collapsing, and these countries start getting into more and more debts. In such situations, governments compromise on the crucial or necessary aspects provided to the people, making the lives of common people living in that country much more difficult. 

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Effects of Great Depression throughout the World

Following are some adverse effects or impacts of the great depression on the economic conditions that have occurred throughout the world-

• Declines in the Output are very Drastic and Unexpected: 

The outputs of a country start declining rapidly, affecting normal life to a great extent.

• Unemployment Issue takes up a Big Shape suddenly:

Unemployment increases to a huge extent, and people start losing their jobs unnecessarily. 

• Stock Market drops to an unimaginable extent:

Stock Markets all over the world have started dropping to an unimaginable extent. A great depression symbol expresses this realistically for sure. 

All the above effects are the ways to describe the impact of the great depression on the Indian economy as well as other economies throughout the world and make people realize the seriousness of the same. Great depression can bring terrible outcomes for the people. This has been experienced by many developing countries such as India and Germany and developed countries like America, etc. 

Impact on the  Indian Economy by Great Depression:

The Indian economy is affected by a lot of day-to-day as well as unusual factors. However, the strongest and most vital one among them is a great depression. The impact of the great depression on the Indian economy is enormous and proper comparison cannot be made as to what extent the effects of their damage are. However, we can only say that the inflation rates have risen greatly, and common people suffer a lot because of this. 

India has a huge population, and 80% of parents in India have two or more children. In such a situation, the effect of the great depression on the Indian economy is seen as inflation rising as well as major unemployment problems. Therefore, people suffer from all the corners when the Indian economy collapses due to the great depression and any other reasons. 

Changes in the German Economy due to Great Depression:

Economic depression in Germany is not a newly invented fact. Every country experiences some economic crisis or the other at some point throughout their work. However, the great depression struck the welfare and economic freedom of the citizens of Germany so hard that its repercussions are experienced by the citizens even today. Today's generation is suffering from many financial crises in Germany, and coming up from it has been very difficult for many Parliaments and authorities of Germany. 

There are many reasons if we will explain the effects of the great depression in Germany. The main cause of the economic depression in Germany was because the expenditures and resources of Germany were being wasted on things that had almost a negligible priority in the lives of its citizens. Too much was invested in some unnecessary business run under the Government of Germany's approval. This started creating a great shortage of economy day by day leading to the occurrence of the great depression in Germany. Active measures have now been taken to degrade this impact, and now Germany is starting to get itself back on the right track for sure. 

Effect on American Economy by Great Depression

America has also faced a lot of economic troubles, and this can be clarified when it comes to explaining the effects of the great depression taking place in its territory. Therefore, not even America is safe from the repercussions of the great depression, and the best way to deal with it is to stop it from occurring in part of the world.

Conclusion

Great depression can result in being the worst economic phase that you will ever experience in your life. The outcomes of the great depression can make even a whole country bankrupt, and the common and poor people in that country are left with no option but to take their lives. Therefore, keeping proper track of your economic conditions well in time and avoiding all the occurrences of the great depression is a must for every country. Every country should have adequate means to analyse the impact of the great economic depression on Germany & other countries and then plan the strategies accordingly.