Great Depression

Definition

The Great Depression was a severe worldwide economic downturn that began in 1929 and lasted throughout the 1930s, characterized by high unemployment, falling industrial output, and widespread poverty. This era prompted significant government intervention in the economy and sparked various social and cultural responses as communities struggled to cope with the economic crisis.

5 Must Know Facts For Your Next Test

1. The stock market crash of October 1929 marked the beginning of the Great Depression, leading to a chain reaction of bank failures and business bankruptcies.
2. During the Great Depression, unemployment rates soared to about 25% in the United States, leaving millions without jobs and creating significant social upheaval.
3. The federal government initially struggled to address the crisis effectively, leading to widespread public discontent and demands for change.
4. New Deal programs introduced by FDR aimed to provide immediate relief for the unemployed, stimulate economic recovery, and implement reforms to prevent future depressions.
5. Cultural responses during the Great Depression included a surge in art, literature, and music that reflected the struggles of everyday people, fostering a sense of community and resilience.

Review Questions

• How did the economic challenges of the Great Depression influence government policies during this period?
  • The Great Depression led to a dramatic shift in government policies as leaders recognized the need for intervention to address widespread economic suffering. The New Deal programs established by Franklin D. Roosevelt were aimed at providing relief to those affected by unemployment and poverty. This marked a significant expansion of federal government involvement in economic affairs, setting a precedent for future governmental responses to economic crises.
• Analyze how cultural expressions during the Great Depression reflected the experiences of individuals facing economic hardship.
  • Cultural expressions during the Great Depression, such as literature, music, and visual arts, served as powerful reflections of individual experiences amid economic hardship. Artists and writers depicted themes of struggle, resilience, and hope, capturing the realities faced by many Americans. This outpouring of creativity not only provided an outlet for those suffering but also helped build a sense of solidarity among communities enduring similar challenges.
• Evaluate the long-term impacts of New Deal programs on American society following the Great Depression.
  • The New Deal programs had lasting impacts on American society that extended beyond the immediate recovery from the Great Depression. These initiatives reshaped the role of government in economic life, establishing social safety nets such as Social Security and labor rights protections. Over time, these changes contributed to a more active government presence in ensuring economic stability and protecting citizens' welfare, which has influenced policy debates up to the present day.

Related terms

New Deal: A series of programs and policies introduced by President Franklin D. Roosevelt aimed at providing relief, recovery, and reform to counteract the effects of the Great Depression.

Dust Bowl: A period of severe dust storms during the 1930s that greatly damaged agriculture in the U.S. prairies, exacerbating the struggles faced by farmers during the Great Depression.

Unemployment Rate: The percentage of the labor force that is jobless and actively seeking employment, which reached historic highs during the Great Depression.