Great Depression

Definition

The Great Depression was a severe worldwide economic downturn that lasted from 1929 until the late 1930s, marked by significant declines in income, widespread unemployment, and a collapse of the financial system. It fundamentally changed the relationship between the government and the economy, prompting new policies and interactions between the executive branch and legislative bodies as they worked to combat economic challenges.

5 Must Know Facts For Your Next Test

1. The Great Depression began with the Stock Market Crash of October 1929, which wiped out millions of investors and led to a chain reaction of economic failures.
2. At its peak, unemployment in the United States soared to nearly 25%, leaving millions without jobs and struggling for basic necessities.
3. In response to the Great Depression, President Franklin D. Roosevelt proposed the New Deal, which involved a series of federal programs designed to provide relief, recovery, and reform.
4. The interaction between the executive branch and Congress intensified during this period as lawmakers sought to address urgent economic issues through legislation and oversight.
5. The Great Depression prompted significant changes in U.S. economic policy, leading to a more active role for the federal government in regulating markets and providing social safety nets.

Review Questions

• How did the Great Depression influence the relationship between the executive branch and Congress?
  • The Great Depression significantly altered the dynamics between the executive branch and Congress as they were forced to work closely together to address economic challenges. President Roosevelt's New Deal programs required legislative support for funding and implementation, leading to increased collaboration. This relationship also saw debates over government intervention in the economy, as lawmakers had to balance public needs with concerns about government overreach.
• Discuss how the policies enacted during the Great Depression reshaped American political ideology regarding government intervention.
  • The policies enacted during the Great Depression marked a shift in American political ideology towards favoring greater government intervention in economic matters. The New Deal introduced various programs aimed at relief and recovery, demonstrating a belief that government could play a crucial role in stabilizing the economy. This change laid the groundwork for future expectations of federal involvement in economic and social issues, altering how Americans viewed their government’s responsibilities.
• Evaluate the long-term effects of the Great Depression on American legislative practices and executive authority.
  • The Great Depression had lasting effects on American legislative practices and executive authority, solidifying an expectation for active governmental engagement in economic crises. The experience fostered a precedent for future presidents to seek broad powers during emergencies, influencing legislative responses to subsequent economic challenges. Additionally, it transformed congressional roles into more proactive participants in shaping economic policy, emphasizing collaboration with the executive branch while adapting to evolving political dynamics.

Related terms

New Deal: A series of programs and reforms initiated by President Franklin D. Roosevelt in response to the Great Depression aimed at economic recovery and social reform.

Stock Market Crash of 1929: A major stock market collapse that signaled the beginning of the Great Depression, resulting in substantial financial losses and a loss of confidence in the economy.

Unemployment: A situation where individuals who are capable of working are unable to find a job, which reached unprecedented levels during the Great Depression.