News:Economists have been comparing the current crisis with the Great Depression of 1929.
- The Great Depression was a major economic crisis that began in the United States in 1929 and went to have a worldwide impact until 1939.
- Reasons: a) U.S Stock Market Crash of 1929 b) Bank Failures c) Reduction in Purchasing Across the Board d) United States Economic Policy with Europe and e) Drought Conditions.
- Impact: a) Increase in Unemployment b) Extreme Human Suffering c) Deflation d) Political upheavals such as rise of fascism in Europe among others.
- Impact on India: a) Drastic fall in agricultural prices and a severe credit contraction which led to peasants protest b) Launch of Civil Disobedience movement c) No Rent campaigns in many parts of the country d) Landslide victory of the Indian National Congress in the 1936-37 provincial election among others.