The Great Depression

Great Depression

A severe worldwide economic downturn that lasted from 1929 until the late 1930s.

Deflation

A decrease in the general price level of goods and services, often following a period of overproduction.

Black Tuesday

October 29, 1929, the day when stock prices plummeted and marked the start of the Great Depression.

Buying on Margin

Purchasing stocks by paying a small percentage of the price and borrowing the rest, leading to inflated stock prices.

Nationwide Bank Run

A situation where a large number of people withdraw their deposits simultaneously, fearing bank insolvency.

Unemployment Rate of 25%

The peak unemployment level during the Great Depression by 1933, resulting from massive job losses.

Agricultural Overproduction

A surplus of agricultural products leading to falling prices and economic difficulties for farmers.

Industrial Overproduction

The excess production of goods in the industrial sector leading to price drops and increased unemployment.

Federal Reserve

The central banking system of the United States, which was criticized for its response during the Great Depression.

Bank Failures

The closure of banks due to insolvency, often exacerbated by a loss of depositor confidence and investments in the stock market.