The world has seen its ups and downs especially in the economic scene.  One memorable and equally devastating event was the Great Depression in the early 1900s.  But before you ask how did the great depression end; asked first what you know about it first. 

Towards the depression

Understanding how the great depression end and start entails learning what a depression is. To make things simpler, a depression is a long-term economic slump.  This is more severe that a recession which was recently felt several years back.  Unlike a recession, it is not entirely a part of a normal business cycle making its occurrence rare. 

To some the great depression is just a historical landmark on the world's financial and economic status.  But it is more than just a world-wide event.  It was a phenomenon that sprung about new ways to address economic, international and even political issues. 

Many economist attribute The Great Depression on the collapse of the US stock market in October 29, 1929.  Though others see this devastating collapse as a mere symptom of the depression, the fact remains that the downfall of the US stock market played a crucial part. 

Effects of the depression

The effects of the depression took a toll on the lives of the public.  During 1929 to 1932, unemployment rate rose up to 607% forcing people to fight for everyday survival.  Industrial production fell to almost 46%.  Likewise wholesale prices was at -32%.  What's even worse was that foreign trade fell down to -70%.  It was truly dark times not just for Americans but even for other countries around the world. With any econo0mic disasters like this, employment, basic needs, trade, productions and other vital economic sources are greatly affected. 

The end of the depression 

So how did the great depression end?  Since this was not an isolated case, the recovery from the great depression was at different times.  In the United States, the end of the depression started in 1933 but unfortunately, it took several years before the GNP reached the 1929 level.  UP until now, there is no consensus as how the great depression was dealt with.  On one side are the economists who strongly believe that it was Roosevelt's New Deal policies that did the trick.  One the other side some economists says that it's the increase in the money supply that helped the US economy.  Though the reasons for the recovery are numerous, the fact that the depression was over was something many Americans – and people all over the world welcomed.

In the final analysis of things, many experts believe that it was money management that sprung the depression.  Moreover, it was money management that helped the country's recovery from the economic crisis.  Understanding how did the great depression end is just one part of the equation.  To be able to protect global economics from another disaster like this, the root causes must be given appropriate attention.