The Great Depression

The Great Depression was a severe global economic downturn that lasted from 1929 to the late 1930s. It started in the United States and spread worldwide, causing massive unemployment, bank failures, and economic hardship.

Key Causes:

1. Stock Market Crash (1929) – The U.S. stock market crashed on October 29, 1929 (Black Tuesday), wiping out billions in wealth.

2. Bank Failures – Many banks collapsed due to bad loans and panic-driven withdrawals.

3. Reduced Consumer Spending – People lost jobs and savings, leading to lower demand for goods.

4. Drought and Dust Bowl (1930s) – Agricultural failures worsened the crisis in the U.S.

5. Trade Protectionism – High tariffs (e.g., Smoot-Hawley Tariff Act, 1930) hurt global trade.

Impact:

Unemployment reached 25% in the U.S.

Global economies suffered, especially in Europe and Latin America.

Governments introduced economic reforms, such as Franklin D. Roosevelt’s New Deal in the U.S.

The Great Depression only ended with World War II, as wartime production boosted employment and economic recovery.