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The beginning of the Depression was caused by the empowering of government involvement in the economy of the country and in the life of society. Depression made people forget about the wealth, growth and prosperity of last decade and face new and economically unfair conditions of doing business and living circumstances.It is obvious that the Great Depression influenced different countries in different ways, in a different time and rates of severity.
Only the last resort could become a reason for this decision, newspapers published the names of people who got the welfare payments, and it was considered as a disgrace.
After facing real starving times, men started to sign up for government social payments that were a painful decision for the majority of the people.
During Depression money of the investors which were in the market for the investments was lost in one moment which caused huge financial losses of clients, the banks were forced to close down.
They depended on stock markets deeply that’s why it caused such a big panic and extreme withdrawal of their money.
The stock market failure affected all Americans as the customers: they stopped getting the salary, they stopped spending money, buying goods as much as they did before because they didn’t have this opportunity anymore.
These trade issues influenced all the companies, reduced sales, income.
The hardest influence was experienced by the American and European economies. Big enterprises, small companies, farmers, families around the countries suffered from the crisis which caused banking panic, the decline in the consumer demand.
Improper policies of the government led the fall of the output in the United States, while the so-called gold standard, which gave fixed currency exchange rates to almost all countries transmitted downturn from the USA to other countries and made the crises international.
For example, they called the land which suffered from the most severe influence Hooverville.
What is the connection between the Great Depression and the Gold Standard?