Great Depression

Definition

The Great Depression was a severe worldwide economic downturn that lasted from 1929 until the late 1930s, marked by massive unemployment, a steep decline in industrial production, and widespread poverty. Its effects extended deeply into the political, social, and economic fabric of the Victorian era, as it led to significant changes in government policies and societal structures in response to economic hardships.

5 Must Know Facts For Your Next Test

1. The Great Depression began with the Stock Market Crash of 1929, which wiped out millions of investors and led to a loss of confidence in the economy.
2. Unemployment rates soared during the Great Depression, reaching around 25% in the United States at its peak, leaving countless families struggling to survive.
3. The global nature of the Great Depression meant that countries around the world experienced economic hardships, leading to increased political instability and social unrest.
4. Governments responded to the Great Depression with various measures, including public works programs and financial reforms designed to stabilize economies and provide jobs.
5. Cultural responses during this time included literature and art that reflected the struggles faced by individuals and families, illustrating themes of despair, resilience, and hope.

Review Questions

• How did the Stock Market Crash of 1929 contribute to the onset of the Great Depression?
  • The Stock Market Crash of 1929 acted as a trigger for the Great Depression by causing an immediate loss of wealth for investors and a steep decline in consumer confidence. This resulted in reduced spending and investment, which further compounded economic problems such as widespread unemployment and business failures. The crash exposed underlying weaknesses in the economy, leading to a downward spiral that significantly impacted both individual lives and national economies.
• What were some key government responses to the economic challenges posed by the Great Depression, and how did they reshape political policies?
  • In response to the Great Depression, governments implemented various measures such as public works programs, financial regulations, and social welfare initiatives. In the United States, Franklin D. Roosevelt's New Deal introduced reforms aimed at providing immediate relief for the unemployed while also promoting long-term economic recovery. These responses not only addressed urgent needs but also led to a shift in governmental roles, with increased intervention in economic matters becoming more accepted among both politicians and citizens.
• Evaluate the lasting impacts of the Great Depression on society and culture, particularly regarding literature and art during this period.
  • The Great Depression had profound impacts on society and culture, with literature and art serving as reflections of the hardships faced by individuals. Writers like John Steinbeck captured the struggles of ordinary people through their works, emphasizing themes of resilience amidst despair. The cultural output from this era not only documented societal challenges but also inspired movements toward social change, highlighting issues such as inequality and poverty that continued to resonate long after the economic recovery began.

Related terms

Stock Market Crash of 1929: A major stock market crash that occurred in late October 1929, serving as a catalyst for the Great Depression and leading to significant financial turmoil worldwide.

New Deal: A series of programs and reforms implemented by U.S. President Franklin D. Roosevelt in response to the Great Depression, aimed at providing relief for the unemployed and stimulating economic recovery.

Dust Bowl: A period of severe dust storms during the 1930s that greatly damaged agriculture in the U.S., compounding the economic struggles of the Great Depression.