Great Depression

Definition

The Great Depression was a severe worldwide economic downturn that lasted from 1929 to the late 1930s, marked by a significant decline in industrial output, high unemployment rates, and a drastic drop in consumer spending. This period was pivotal in reshaping economic policies and government roles, leading to major changes in how states managed their economies and provided for their citizens.

5 Must Know Facts For Your Next Test

1. The stock market crash of October 1929 is often cited as the beginning of the Great Depression, leading to a rapid decline in both stock prices and consumer confidence.
2. In Texas, the Great Depression had unique impacts, including the devastation of the cotton industry and widespread poverty in rural areas.
3. The unemployment rate reached about 25% nationally during the worst years of the Great Depression, with many families struggling to meet basic needs.
4. The federal government expanded its role significantly during this period, establishing new programs and regulations aimed at stabilizing the economy and providing direct assistance to those affected.
5. The Great Depression ended in the late 1930s but laid the groundwork for significant social and economic reforms that continued into World War II.

Review Questions

• How did the Great Depression influence changes in government economic policies in Texas?
  • The Great Depression prompted significant changes in government economic policies in Texas as state leaders responded to widespread poverty and unemployment. Programs such as relief efforts were established to assist struggling families, and state governments began to take a more active role in economic regulation. This shift laid the groundwork for modern welfare policies and contributed to the expansion of state power in managing economic crises.
• Analyze how the Dust Bowl exacerbated the effects of the Great Depression on Texas agriculture and its population.
  • The Dust Bowl severely affected Texas agriculture by destroying crops and displacing thousands of farming families. The combination of drought conditions and poor farming practices led to soil erosion, reducing land productivity and driving many farmers into poverty. As agricultural failure spread, it not only intensified economic hardship but also led to mass migrations of people seeking work elsewhere, fundamentally altering Texas's demographic landscape.
• Evaluate the long-term impacts of the Great Depression on Texas society and governance.
  • The long-term impacts of the Great Depression on Texas society included shifts toward greater social safety nets and a redefined relationship between citizens and government. The crisis highlighted the need for economic security, leading to initiatives that expanded public assistance programs and infrastructure development. Moreover, it influenced political ideologies and fostered a culture of resilience that shaped future governance strategies, emphasizing proactive measures to prevent such widespread economic disasters from occurring again.

Related terms

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

Dust Bowl: A severe drought and poor agricultural practices that led to massive dust storms in the 1930s, exacerbating the economic hardships faced by farmers during the Great Depression.

Economic Recession: A significant decline in economic activity across the economy lasting more than a few months, often measured by GDP, employment rates, and production levels.