Definition: A severe worldwide economic downturn that began in 1929 and lasted for about a decade.
Causes:
Stock market crash of October 1929, known as Black Tuesday.
Bank failures leading to loss of savings.
Reduction in consumer spending and investment.
Drought conditions exacerbating agricultural decline (Dust Bowl).
Effects:
Unemployment rates soared, reaching about 25% in the U.S.
Widespread poverty and homelessness.
Significant drop in industrial production.
Global trade declined significantly.
Government Response:
Introduction of New Deal policies by President Franklin D. Roosevelt in the 1930s aimed at economic recovery.
Lasting Impact: Shifted government’s role in economic intervention and welfare.
The Great Depression of 1929
Definition: A severe worldwide economic downturn that began in 1929 and lasted for about a decade.
Causes:
Stock market crash of October 1929, known as Black Tuesday.
Bank failures leading to loss of savings.
Reduction in consumer spending and investment.
Drought conditions exacerbating agricultural decline (Dust Bowl).
Effects:
Unemployment rates soared, reaching about 25% in the U.S.
Widespread poverty and homelessness.
Significant drop in industrial production.
Global trade declined significantly.
Government Response:
Introduction of New Deal policies by President Franklin D. Roosevelt in the 1930s aimed at economic recovery.
Lasting Impact: Shifted government’s role in economic intervention and welfare.