The Great Depression began around the end of 1929 and lasted almost till1939 when the Second World War began. During this decade there was a worldwideeconomic decline triggered by a decline in demand and fall in prices. The declinein demand led to closure of factory production which in turn meant further declinein the purchasing power of people leading to further decline in demand. This cyclicaleffect caused massive unemployment and decline of real incomes of ordinarypeople as well as governments across the world. It initially began with a stockmarket collapse in the US, but before long affected almost every country.As many as 25% Americans were unemployed and nearly 33% in many othercountries. As factories closed down and trade declined cities became centers ofdecline. This in turn caused a collapse of prices (upto 60%) for agricultural producecausing pauperisation of millions of farmers and stopping of cultivation. This wasthe longest and most severe economic decline faced by modern economy till today.It had devastating social consequences sharply increasing poverty, homelessness.