Question

many historians cite the stock market crash of 1929 as the beginning of the great depression however many people in the south experienced the effects of the Great Depression well before 1929. How is this possible? Explain. Please someone answer soon!

Answer 1

The people of the south began to suffer before the effects of the Great Depression due to the theory of dependency. The theory of dependency arises to try to understand the impact suffered by Latin Americans during the Great Depression.

This dependency relationship is produced by the intense investment of the United States in Latin America, which manifested itself in foreign trade.

When there are moments of strong expansion of the world economy, the demand for raw materials in both quantities and prices increases in the short term, however, in the long term, this trend changes and the quantities of commodity prices fall sharply, hence, before the Great Depression of 1929, many people in the South experienced its effects.