The Great Depression

Definition

The Great Depression was a severe worldwide economic downturn that lasted from 1929 until the late 1930s, marked by significant declines in industrial production, widespread unemployment, and falling prices. It drastically changed the economic landscape of the United States and had profound effects on immigration patterns, migration within the country, and governmental policies aimed at recovery.

5 Must Know Facts For Your Next Test

1. Unemployment rates soared during the Great Depression, reaching about 25% at its peak, meaning one in four American workers was without a job.
2. The stock market crash of October 1929 is considered the catalyst for the Great Depression, leading to panic selling and a dramatic loss of wealth for investors.
3. The Great Depression led to significant changes in government policies regarding economic intervention, with programs like Social Security emerging as a response to widespread poverty.
4. Many people migrated from rural areas to urban centers or moved westward to escape drought and seek work, dramatically altering demographic patterns in the U.S.
5. The global nature of the Great Depression was felt worldwide, affecting economies in Europe and beyond, leading to a decline in international trade and contributing to political instability.

Review Questions

• How did the Great Depression affect migration patterns within the United States?
  • During the Great Depression, many people migrated from rural areas to urban centers in search of jobs as agricultural hardships intensified. The Dust Bowl also prompted thousands of farmers and their families to leave their homes in the Great Plains and travel westward to states like California. This mass movement resulted in significant demographic shifts and highlighted the struggles faced by those displaced by economic despair.
• Analyze how government responses to the Great Depression reshaped economic policy in America.
  • In response to the Great Depression, the U.S. government implemented a series of programs collectively known as the New Deal under President Franklin D. Roosevelt. These policies aimed at providing immediate relief to those suffering, promoting economic recovery, and reforming financial systems to prevent future crises. The New Deal marked a shift toward increased federal involvement in economic affairs, laying the groundwork for modern social safety nets like Social Security and regulatory agencies.
• Evaluate the long-term impacts of the Great Depression on American society and its economy.
  • The long-term impacts of the Great Depression were profound, leading to permanent changes in both American society and its economy. It fostered a new relationship between citizens and their government, with expectations for federal support during economic hardships becoming more normalized. Additionally, it highlighted vulnerabilities in financial systems and prompted reforms that shaped regulatory practices for decades. The collective experience of hardship also contributed to cultural shifts that influenced art, literature, and social movements in subsequent years.

Related terms

Dust Bowl:

A series of dust storms during the 1930s that severely affected agriculture in the Great Plains, leading to mass migrations of farmers and their families to seek better opportunities.

New Deal:

A series of programs and policies implemented by President Franklin D. Roosevelt aimed at providing relief, recovery, and reform during the Great Depression.

Stock Market Crash of 1929:

A major stock market crash that occurred in October 1929, which is often cited as the beginning of the Great Depression due to its devastating impact on financial markets and investor confidence.