Great Depression

Definition

The Great Depression was a severe worldwide economic downturn that lasted from 1929 until the late 1930s, characterized by high unemployment, plummeting stock prices, and widespread poverty. It significantly impacted the socio-economic landscape, exacerbating class struggle as various groups fought for limited resources and better working conditions in an increasingly desperate environment.

5 Must Know Facts For Your Next Test

1. The Great Depression began with the stock market crash on October 29, 1929, known as Black Tuesday, leading to significant losses in wealth and employment.
2. Unemployment rates soared to nearly 25% in the United States at the peak of the Great Depression, leaving millions without jobs or means of support.
3. The agricultural sector was heavily affected, with many farmers losing their land due to falling prices and inability to pay debts, leading to events like the Dust Bowl.
4. The Great Depression prompted government intervention in the economy, leading to major shifts in policy such as the establishment of Social Security and labor rights protections.
5. Class struggle intensified during this period as marginalized groups, including workers and minority communities, organized to demand better living conditions and labor rights.

Review Questions

• How did the Great Depression exacerbate class struggle within society?
  • The Great Depression intensified class struggle as economic hardship disproportionately affected lower-income and marginalized groups. With soaring unemployment rates and widespread poverty, these groups were pushed to fight for better wages, working conditions, and social services. The desperation of the times led to increased union activity and collective organizing, highlighting the divisions between the working class and those who controlled economic resources.
• Discuss the role of government policies during the Great Depression in relation to labor rights and social welfare.
  • During the Great Depression, government policies like the New Deal significantly reshaped labor rights and social welfare. These initiatives aimed to provide relief for the unemployed and bolster economic recovery through job creation programs. Additionally, policies such as Social Security were established to protect vulnerable populations, while labor laws were enacted to strengthen workers' rights and facilitate union organizing. This marked a pivotal shift in how government engaged with economic issues and social justice.
• Evaluate how the Great Depression influenced long-term changes in economic policies and class relations in society.
  • The Great Depression had profound and lasting impacts on economic policies and class relations. It catalyzed a shift toward more interventionist government policies that sought to manage economic fluctuations and protect citizens from similar crises. This era established a framework for labor rights that would empower workers and promote class solidarity. The lessons learned during this tumultuous time influenced future economic strategies, shaping the relationship between government and citizens concerning welfare programs, labor rights, and economic stability.

Related terms

Stock Market Crash of 1929: A sudden dramatic decline of stock prices in October 1929, which marked the beginning of the Great Depression and led to widespread financial panic.

New Deal: A series of programs and policies introduced by President Franklin D. Roosevelt in the 1930s aimed at economic recovery and social reform during the Great Depression.

Labor Movement: A collective organization of workers advocating for better working conditions, wages, and rights, which gained momentum during the Great Depression as workers sought to improve their dire situations.