Economic Crisis of 1929-33

• Orginated in USA.
• Economy collapsed, stock market in New York crashed.
• 9000 American banks closed, people lost their savings. 
• No money yo invest - little money to buy. Goods remained unsold.

• Depression = large scale unemployment + loss of production + poverty and starvation

Cause of Depression 1929-33

• Over production. 
• To maximize profit producing more and more. 
• purchasing power of workers low. 
• goods can not be sold unless their prices are reduced, cannot be reduced as it affects profit.
• goods remained unsold, factories stopped production and workers became unemployed. o

Other points

• Nazi's in Germany exploited the discontent of the people to promote their anti-democratic programme. 
• Soviet union remained unaffected during 1929-33 Economic crisis.