Great Depression

Definition

The Great Depression was a severe worldwide economic downturn that began in 1929 and lasted throughout the 1930s, significantly impacting economies and societies across the globe. In New Zealand, this period was marked by widespread unemployment, poverty, and social unrest, leading to significant changes in government policies and attitudes toward welfare and social support.

5 Must Know Facts For Your Next Test

1. In New Zealand, the Great Depression led to unemployment rates soaring to around 30%, causing severe hardships for families and communities.
2. The government responded to the crisis with public works programs aimed at providing jobs and stimulating the economy, such as the construction of roads and infrastructure.
3. During this time, political movements gained traction, including the rise of the Labour Party, which promised reforms and greater support for those affected by economic hardship.
4. Many New Zealanders experienced a change in attitudes towards social welfare, leading to a more robust system designed to support the unemployed and vulnerable populations.
5. The impact of the Great Depression on New Zealand society fostered a sense of solidarity among citizens, influencing social norms and encouraging community support systems.

Review Questions

• How did the Great Depression alter the social fabric of New Zealand society?
  • The Great Depression had a profound effect on New Zealand society by increasing unemployment rates and pushing many families into poverty. This crisis fostered a sense of solidarity among citizens as communities banded together to support one another. It also led to changes in social norms regarding welfare, prompting greater public demand for government intervention and support systems for those affected by economic hardship.
• In what ways did the New Zealand government respond to the challenges posed by the Great Depression?
  • The New Zealand government implemented several measures in response to the Great Depression, including public works programs designed to create jobs and stimulate economic activity. These initiatives included large-scale infrastructure projects such as road building. Additionally, there was a significant political shift towards a more interventionist approach, with parties like Labour advocating for reforms that would establish a safety net for those struggling economically.
• Evaluate the long-term effects of the Great Depression on New Zealand's welfare policies and economic strategies.
  • The long-term effects of the Great Depression on New Zealand were significant in shaping its welfare policies and economic strategies. The crisis revealed weaknesses in existing social systems and highlighted the need for robust government intervention in times of economic hardship. As a result, New Zealand developed a comprehensive welfare state that provided assistance for unemployment and other social needs, establishing principles that continue to influence its social policy today. The experience also encouraged a more proactive approach toward managing economic cycles, emphasizing the importance of government roles in economic recovery.

Related terms

Unemployment: The state of being jobless and actively seeking work, which rose dramatically during the Great Depression, peaking at around 80,000 unemployed individuals in New Zealand.

Welfare State: A government system that provides social services to its citizens, which saw significant development in New Zealand as a response to the hardships experienced during the Great Depression.

Economic Recovery: The process through which an economy regains and improves its health after a period of recession or depression, which in New Zealand involved implementing policies to stimulate growth post-Great Depression.