Great Depression

Definition

The Great Depression was a severe worldwide economic downturn that began in 1929 and lasted until the late 1930s, profoundly impacting societies across the globe. It triggered widespread unemployment, significant declines in industrial output, and a collapse of financial institutions, leading to lasting social and economic changes. The effects of this crisis shaped responses in various areas such as social welfare, political movements, and even cultural shifts, fundamentally altering the landscape of nations during this era.

5 Must Know Facts For Your Next Test

1. The Great Depression was triggered by the stock market crash of October 1929, which wiped out millions of investors and severely damaged consumer confidence.
2. In Canada, unemployment reached as high as 27% during the depths of the Great Depression, leading to widespread poverty and social unrest.
3. The government response to the Great Depression included various relief programs aimed at providing support for the unemployed and struggling businesses.
4. Social changes included a greater emphasis on community support systems and grassroots movements as people sought ways to cope with economic hardship.
5. The political landscape shifted as new parties emerged, advocating for reforms in response to the economic crisis, which laid the groundwork for modern welfare policies.

Review Questions

• How did the Great Depression affect the social fabric of Canadian society during its peak?
  • The Great Depression had a profound effect on Canadian society, leading to heightened levels of poverty and unemployment that altered daily life for many. Families struggled to make ends meet, resulting in increased reliance on community support networks and charitable organizations. The experience of hardship also fostered a sense of solidarity among those affected, pushing people to come together for mutual aid, which contributed to changes in social attitudes toward government responsibility for economic welfare.
• Evaluate how government responses to the Great Depression influenced future political movements in Canada.
  • Government responses to the Great Depression included various relief measures and programs aimed at stabilizing the economy and providing aid to those affected. These actions led to increased public expectations for government intervention in economic affairs. The emergence of new political parties advocating for more extensive reforms reflected this shift, as Canadians began to demand a more active role from their governments in managing the economy and addressing social issues, paving the way for future policies like Canada's welfare state.
• Assess the long-term impacts of the Great Depression on Canadian economic policies and society.
  • The long-term impacts of the Great Depression on Canadian economic policies included a significant shift towards more robust social safety nets and welfare programs designed to protect citizens from future economic downturns. This era also sparked a re-evaluation of governmental roles in economic management, which led to regulatory reforms aimed at preventing another financial crisis. Socially, it instilled a sense of resilience within communities that influenced cultural attitudes toward hardship and collective responsibility, fostering a legacy that would shape Canadian identity for generations.

Related terms

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

Dust Bowl: A severe drought during the 1930s that compounded the economic challenges of the Great Depression, particularly affecting agricultural areas in Canada and the United States.

Unemployment Rate: The percentage of the labor force that is jobless and actively seeking employment, which soared during the Great Depression, highlighting the crisis's impact on the economy.