Question

When did the international economy collapse and why- durning the great depression

Answer 1

The Great Depression, which began with the 1929 stock market crash, caused worldwide economic collapse, due to a mix of factors, including demand for loan repayments by U.S. banks, international trade reduction, and protective tariffs. These contributed to a 15 percent global GDP decrease and widespread unemployment.

Step-by-step explanation:

The international economy witnessed a severe collapse during the Great Depression, which began with a drastic stock market crash on October 24, 1929. This economic downturn led to a global GDP decrease of 15 percent between 1929 and 1932, as trade plunged and banks called in international loans. Several contributing factors such as the overvalued stock market, protective tariffs like the Hawley-Smoot Tariff Act, and austerity policies led to widespread unemployment and poverty, with worldwide industrial output, particularly in Germany, dropping by nearly 50%. The lack of economic stability and foreign trade reduction during this period had profound impacts, with the Depression lasting throughout the 1930s until the economic stimulation of World War II.

Answer 2

Many people during the roaring 20s had lots of money and decided to start buying stocks. More and more people bought the stocks until they were valued more than their actual worth. Americans poured their money, sometimes their life savings, into stocks. In October of 1929, the booming American economy came to an abrupt end as the US stock market crashed. Panicky investors tried to sell their stocks. Banks had made loans that people could not repay. Depositors grew nervous about their money and tried to withdraw it all from the banks, leading to bank failures. Businesses went broke, once-busy factories closed, and millions of workers lost their jobs.

This affected other nations because once America lost it's prosperity and money, they no longer traded. Due to bank failures and factories closures, America did less business overseas, spreading the Great Depression all over.

Hope this helped ^.^
ps, this is from my notes. :)