Key Points

- A global economic crisis that began in 1929 and lasted over a decade.

- Triggered by the U.S. stock market crash, worsened by bank failures, trade restrictions, and collapsing demand.

- Recovery came through government programs like the New Deal and WWII production.

- Led to lasting economic reforms and safety nets.

What Was the Great Depression?

The Great Depression was a worldwide economic collapse beginning in 1929. It caused massive unemployment, poverty, and industrial decline. It marks a major turning point in global economic policy and reform efforts.

Main Causes

- Stock Market Crash (1929): Overvalued stocks collapsed, wiping out investor savings.

- Bank Failures: Bank runs and lack of deposit insurance led to financial panic.

- Trade Decline: Protectionist policies like the Smoot-Hawley Tariff choked global commerce.

- Falling Demand: Rising unemployment reduced consumer spending and investment.

📊 Suggested Chart: "Causes of the Great Depression" Pie Chart

• Speculative stock investments: 30%

• Bank collapses: 25%

• Global trade decline: 20%

• Consumer demand drop: 25%

Global Impact

- Unemployment reached up to 25% in the U.S. and Europe.

- Businesses failed, including major banks and manufacturers.

- Poverty and homelessness surged globally.

- Political shifts led to both democratic reforms and authoritarian regimes in different countries.

📈 Suggested Graph: "Unemployment Rate: 1929–1939" Line Graph

Y-axis: Unemployment rate (%)

X-axis: Years (1929 to 1939)

Highlight peaks in 1933 and declines post-WWII mobilization.

Recovery Efforts

- The New Deal (U.S.): Launched public works, social security, banking reform, and labor rights.

- World War II: Revived industries through military production and employment demands.

📊 Suggested Chart: "U.S. Government Spending Before and After New Deal" Bar Graph

Compare federal spending in 1929, 1933, and 1939.

Lasting Legacy

- Strengthened financial regulations (e.g., FDIC, SEC).

- Introduction of Social Security, unemployment insurance, and welfare systems.

- Set the precedent for proactive economic management by governments.

📊 Suggested Infographic Elements:

- FDIC Created (1933)

- SEC Created (1934)

- Social Security Act (1935)

Conclusion

The Great Depression redefined modern economics. It underscored the need for government regulation, social safety nets, and careful financial oversight. Its lessons continue to shape how we respond to economic crises today—from market crashes to global pandemics.