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SECTION-D
7. Write a detailed note on Great Depression of 1929 and its impact.
Ans: Imagine you’re living in a big, bright city in the 1920s. The streets are full of life. People
are buying new cars, radios, and clothes. Businesses are growing fast, and everyone is talking
about how rich they’ll become. This period is known as the "Roaring Twenes" — full of
excitement, hope, and economic boom, especially in America.
But suddenly, one day, everything crashes — people lose their jobs, homes, and savings. The
streets become silent, factories close down, and long lines of people start forming outside
soup kitchens for free food. This sad and painful me was called the Great Depression, and it
began in 1929.
Let’s understand how this happened, and what eects it had.
What was the Great Depression?
The Great Depression was the biggest and most severe global economic crisis of the 20th
century. It started in October 1929 in the United States but soon aected almost every
country in the world.
It was not just a nancial fall; it was a me of massive unemployment, poverty, and human
suering. People who were rich one day became poor the next. Companies shut down.
Banks collapsed. It lasted for almost a decade — ll the late 1930s.
How did the Great Depression start?
Let’s break it down like a story:
Story Example:
Meet John, a young man in New York City in 1929. He works in a car factory, and he's excited
about the future. His friends say, "Buy stocks! You’ll become rich!"
So, John puts all his money into the stock market — just like millions of others. The market
keeps going up and up, and people think it will never stop. But the truth is — it was like a
bubble. People were buying shares without thinking, even borrowing money to invest.
On October 24, 1929 — now called Black Thursday — the bubble burst. Stock prices fell like
a stone. Panic started. People rushed to sell their shares. On October 29 (Black Tuesday), the
market crashed completely.
John lost all his savings in one day. The factory he worked at shut down. He had no money,
no job, and no hope. Millions of people were like John — caught in this disaster.