The Depression 1921-1940 The Great Depression known as ‘Black Thursday’ began in October 1929 and lasted for about a decade. It was the worst economic crash ever in U. S. history, and one, which spread to virtually the entire industrialized world. The depression started when large numbers of people brought shares in companies. By buying shares low and selling them at a higher price, investors could make a lot of money quickly.
Unfortunately, as the shares dropped, many people wanted to sell before the share price fell below what they had paid for the shares. The main cause for the Great Depression was the combination of the greatly unequal distribution of wealth throughout the 1920’s, and the extensive stock market speculation that took place during the last part of that same decade. Australia entered the depression because it depended on selling overseas products like wool, wheat and minerals, but countries could not afford to buy these products as the poverty cycle began. Overnight, individuals and companies were ruined.
The depression threatened people’s jobs, savings, and even their homes and farms. How did this event influence or have an impact upon Australia society? The Depression has a big impact on Australian society firstly it meant the shame of unemployment. In Australia, unemployment peaked in 1933 at approximately 28 per cent. The unemployed felt humiliated and many names were called. Women had to resign as an order from the government to help solve this problem. Many families couldn’t afford to pay rent and were evicted from their homes.
The Essay on Analyze The Effects Of The Great Depression On Australia In The 1930s
The Great Depression had an immense effect on Australia both economically and socially. During the time of the Great Depression Australia’s economy was largely dependent on wool and wheat exports thus when the Depression hit and the exports lessened in value many industries were consequently effected, leaving many out of work. Due to the increasing unemployment rate there was a sense of ...
Some families left in the middle of the night to help maintain a bit of dignity. These families that were evicted moved to a ‘Shanty Town’. These towns were made up of tents, made from potatoes bags, old crates, corrugated iron and cardboard. The Shanty Town was for families who had no water, sewerage or electricity. Economically, Australia fell dramatically into the poverty cycle.
Australia depended mainly on selling overseas primary products like wool, wheat and minerals. Australia owed millions of dollars to Britain from which Australia also depended loans. Many countries had outstanding loans to be repaid, but like Australia they could not back them back. More and more Australians were becoming unemployed, because of this, the demands for goods was less. Without exports, farms and industry were affected, people became employed, businesses went bankrupt, and poverty spread. The Australian Government was not ready for the Depression.
Endless debating was getting Australia no-where. Many ideas were put forward by the Politics to help Australia through this crisis. Australia needed to balance its budget in order to survive the Depression years.
