The Great Depression was a severe worldwide economic downturn that lasted from 1929 to 1939. It began in the United States following the stock market crash of October 1929, which caused widespread panic and led to millions of investors losing their savings.
The Great Depression was characterized by a sharp decline in international trade, industrial production, and employment rates. Many businesses went bankrupt, leading to high levels of unemployment and poverty. The unemployment rate in the United States reached 25% at its peak, with millions of people struggling to find work and support their families.
The Great Depression had a significant impact on individuals and families, causing widespread hardship and desperation. Many people lost their homes and were forced to live in makeshift shantytowns known as “Hoovervilles.” Soup kitchens and breadlines became common sights as people sought basic necessities.
The Great Depression also had global consequences, as the economic downturn spread to other countries and caused a decline in international trade and investment. Many banks failed, leading to a loss of confidence in the financial system.
The response to the Great Depression varied across countries. In the United States, President Franklin D. Roosevelt implemented the New Deal, a series of government programs and policies aimed at stimulating economic recovery and providing relief to those affected by the Depression. These included public works projects, financial regulations, and social welfare programs.
The Great Depression eventually came to an end with the onset of World War II, which stimulated economic growth through increased government spending and the mobilization of resources for the war effort. However, the scars of the Great Depression remained for years to come, shaping attitudes towards government intervention in the economy and financial regulation.
