History The Great Depression Questions
The causes of the decline in industrial production during the Great Depression were primarily the stock market crash of 1929, which led to a decrease in consumer spending and investment, and the subsequent banking crisis that resulted in widespread bank failures. Additionally, overproduction and unequal distribution of wealth contributed to the decline.
The effects of the decline in industrial production were widespread unemployment, as many businesses were forced to close or reduce their workforce. This led to a decrease in consumer purchasing power, further exacerbating the economic downturn. The decline in industrial production also resulted in a decrease in international trade, as countries implemented protectionist policies to protect their own industries. Overall, the decline in industrial production deepened the economic crisis and prolonged the Great Depression.