key term - Great Depression

Definition

The Great Depression was a severe worldwide economic downturn that lasted from 1929 to the late 1930s, characterized by massive unemployment, widespread poverty, and significant declines in industrial output and stock market values. It marked a pivotal moment in history, leading to dramatic changes in economic policies and the role of government in the economy.

5 Must Know Facts For Your Next Test

1. The Great Depression began with the stock market crash on October 29, 1929, also known as Black Tuesday, which led to a cascade of economic failures.
2. Unemployment soared during the Great Depression, reaching around 25% in the United States at its peak, causing widespread hardship for families.
3. The Great Depression led to significant changes in U.S. government policy, including increased federal intervention in the economy and the establishment of social safety nets.
4. Many countries around the world were affected by the Great Depression, leading to global trade declines and increased political instability in several regions.
5. The economic struggles of the Great Depression helped pave the way for World War II as nations sought to rebuild their economies and populations turned to more radical political ideologies.

Review Questions

• How did the Stock Market Crash of 1929 contribute to the onset of the Great Depression?
  • The Stock Market Crash of 1929 marked a critical turning point that triggered the Great Depression. It caused panic among investors, leading to massive sell-offs and a rapid decline in stock prices. The crash eroded public confidence in financial institutions and triggered a chain reaction of bank failures and reduced consumer spending, ultimately resulting in widespread unemployment and economic collapse.
• What were some key features of Franklin D. Roosevelt's New Deal aimed at addressing the challenges posed by the Great Depression?
  • Franklin D. Roosevelt's New Deal introduced several key features aimed at economic recovery during the Great Depression. These included financial reforms such as the Securities Act and the establishment of Social Security, which aimed to provide relief for the unemployed and elderly. Additionally, programs like the Civilian Conservation Corps (CCC) and Works Progress Administration (WPA) created jobs through public works projects. The New Deal fundamentally reshaped the relationship between government and citizens by expanding federal involvement in economic matters.
• Evaluate how the Great Depression influenced global economic policies and political ideologies during the 1930s.
  • The Great Depression significantly influenced global economic policies and political ideologies throughout the 1930s. As economies struggled with high unemployment and poverty, many nations adopted protectionist measures like tariffs that exacerbated international trade issues. In response to economic distress, extremist political ideologies gained traction, including fascism and communism, as citizens sought solutions outside traditional democratic frameworks. This shift contributed to increased political instability worldwide and set the stage for conflicts leading up to World War II.

Related terms

Stock Market Crash of 1929: A sudden dramatic decline of stock prices that occurred in late October 1929, which is often cited as the beginning of the Great Depression.

New Deal:

A series of programs and reforms introduced 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 worsened the economic plight of farmers in the Great Plains, contributing to mass migrations and further hardships.