The Great Depression was the most severe economic depression ever experienced by the Western world and it was during this troubled time that the world’s most famous case of deflation also happened. The resulting aftermath was so bad that economic policy since has been chiefly designed to prevent deflation at all costs.[The following infographic from Jeff Desjardins (money.visualcapitalist.com) is presented by the editorial team of munKNEE.com (YourKey to Making Money!) in a slightly edited ([ ]) and abridged (…) format to provide a fast and easy read.]
Courtesy of: The Money Project, an ongoing collaboration between Visual Capitalist and Texas Precious Metals, that seeks to use intuitive visualizations to explore the origins, nature, and use of money.
Between 1929 and 1932, worldwide GDP fell by an estimated 15%, deflation hit and personal income, tax revenue, profits and prices plunged. International trade fell by more than 50%. Unemployment in the U.S. rose to 25% and in some countries rose as high as 33%.
These statistics were only the tip of the iceberg. Learn about the full effects, the stories, and the recovery from the Great Depression in Part 2.