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Great Depression

The Great Depression was a severe global economic downturn that lasted from 1929 to the late 1930s. It began with the U.S. stock market crash in October 1929 and led to widespread bank failures, massive unemployment, deflation, and economic hardship. The Great Depression had profound effects on economies worldwide, resulting in significant changes to economic policies, including the adoption of Keynesian economics, the establishment of social safety nets, and extensive financial regulation.

Example

During the Great Depression, U.S. unemployment rates soared to 25%, and many banks failed, leading to widespread poverty, homelessness, and drastic declines in economic output.

Key points

• A severe global economic downturn from 1929 to the late 1930s.

• Characterized by bank failures, high unemployment, and deflation.

• Led to major economic policy changes, including increased government intervention.

Quick Answers to Curious Questions

Causes included the stock market crash of 1929, bank failures, reduction in consumer spending, and poor government policy responses that worsened economic conditions.

It led to high unemployment, reduced international trade, widespread poverty, and significant changes in economic policies and government intervention.

The importance of economic stability, the need for regulatory oversight of financial markets, and the role of government in providing economic support during downturns.