The Great Depression Quick Check
The Great Depression was a severe worldwide economic depression that lasted from 1929 to the late 1930s. It began with the stock market crash on October 29, 1929, known as Black Tuesday. This event marked the start of a decade-long economic downturn that affected millions of people around the world.
During the Great Depression, unemployment rates skyrocketed, reaching up to 25% in the United States. People lost their jobs, homes, and savings, leading to widespread poverty and despair. The economic crisis also had a global impact, affecting countries around the world and leading to a decline in international trade.
Causes of the Great Depression can be traced back to various factors, including overproduction, unequal distribution of wealth, speculative stock market practices, and a lack of government regulation. The collapse of the stock market in 1929 triggered a chain reaction, as businesses began to fail, banks closed, and the economy spiraled into a deep recession.
President Franklin D. Roosevelt implemented various recovery measures known as the New Deal to combat the effects of the Great Depression. These measures aimed to provide relief to the unemployed, reform the financial system, and stimulate economic growth through government programs and infrastructure projects.
The Great Depression had a lasting impact on both the United States and the rest of the world. It led to significant changes in economic policies, increased government intervention in the economy, and a shift in public opinion towards the role of government in addressing economic crises. The Great Depression also served as a lesson for policymakers, highlighting the importance of regulation and stability in the financial system to prevent future economic meltdowns.