Effects of the Great Depression

People standing outside a soup kitchen during the Great Depression

• There was a high rate of unemployment in the USA
• Most city workers began to survive on soup and bread given by charity
• Farmers could not also sell their produce and were unable to pay their mortgages
• Most farmers has their properties confiscated banks and were forced off their farms
• There were outbreaks of many diseases caused by malnutrition such as pellagra
• Many people were also killed by starvation
• Savings could no longer be possible since the wages were very low
• As people failed to repay loans, many banks closed
• The stock exchange lost its value by up to 90%
• Most countries reviewed their trade policies and put trade barriers in place to protect local producers
• In some countries there was deflation which caused decreases in food and other commodities’ prices but it was detrimental to producers
• Family incomes dropped by up to 40% per household
• Confidence in capitalism was lost as the great depression hit hard

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