The economic depression was a period before World War 2, were the economic situation went extremely bad in the US and Europe. Four of the main leading countries, that lead at that time were affected by it, and they were Germany, France, united states and united kingdom. Production rates, foreign trade, unemployment and whole sale prices as well all of them were affected greatly.

Back in the twenties of the previous century, there were many causes that lead to the economic depression; one of them was the structural weaknesses, supported by major events that lead to the economic depression. Major bank failures, economic market crash, us federal reserve that contracted money supply as well as Britain’s decision to return the gold standard at pre-world parties.  Also, ideas such as governments failing to control the interest rates or the failure of free market as another reason.

During the great depression certain things happened to the society.  In 1993 unemployment reached a very high level, leaving a lot of people homeless, looking for shelter in the garbage.  Industrial production dropped by 46% in the US, 23% in great Britain and France as well as Germany who suffered from a 41% drop.  Foreign trade dropped drastically causing the four great powers (Germany, great Britain, united stated and United Kingdom).

According to the British economist Keynesian, what caused the great depression was a lower aggregated expenditure, that lead to huge amounts of unemployed people and lower wages.  Breakdown of international trade also contributed a lot, were countries that relied on foreign trade had a huge decrease in their income, which lead to a worse situation of the depression. Many blame the smoot Hawley act for what has happened from them, since they supported lowering foreign trade.