Great Depression

Definition

The Great Depression was a severe worldwide economic downturn that began in 1929 and lasted throughout the 1930s, marked by widespread unemployment, plummeting production, and significant declines in consumer spending. This crisis had profound impacts on societies and economies, influencing political ideologies, social structures, and cultural changes across Europe.

5 Must Know Facts For Your Next Test

1. The Great Depression originated in the United States with the stock market crash of 1929 but quickly spread globally, affecting economies in Europe and beyond.
2. Unemployment rates soared during the Great Depression, reaching as high as 30% in some countries, leading to widespread poverty and social unrest.
3. The economic hardships of the Great Depression contributed to the rise of extremist political movements in Europe, including fascism and communism.
4. Many governments responded to the economic crisis with protectionist policies, such as tariffs, which further deepened the global economic downturn.
5. Cultural changes during the Great Depression included shifts in art and literature, with many artists and writers focusing on themes of struggle, resilience, and social critique.

Review Questions

• How did the Great Depression affect political ideologies across Europe?
  • The Great Depression significantly influenced political ideologies across Europe as economic instability led to disillusionment with traditional democratic governments. In many countries, people turned to extremist movements such as fascism or communism, which promised radical solutions to economic woes. This shift was evident in countries like Germany and Italy, where leaders like Hitler and Mussolini rose to power by capitalizing on the public's desperation for stability and change.
• Analyze how cultural and social changes during the 1920s set the stage for the Great Depression.
  • The cultural and social changes of the 1920s, often referred to as the 'Roaring Twenties,' created a climate of consumerism fueled by credit expansion and speculative investments. This era saw rapid industrial growth and a shift toward urbanization; however, it also led to economic imbalances. When the stock market crashed in 1929, the fragile financial foundation laid during this period crumbled, contributing to widespread economic despair during the Great Depression.
• Evaluate the long-term economic consequences of the Great Depression on European societies.
  • The long-term economic consequences of the Great Depression on European societies were profound and lasting. Economically, many countries faced a decade-long struggle with unemployment and deflation that delayed recovery even after World War II. Socially, it led to shifts in class structures, increasing poverty levels and changing perceptions of government responsibility for economic welfare. Politically, these conditions fostered instability and contributed to radical movements that reshaped Europe's political landscape for years to come.

Related terms

Stock Market Crash of 1929: A major stock market crash that occurred in late October 1929, which marked the beginning of the Great Depression and led to significant financial losses for investors.

New Deal:

A series of programs and reforms introduced by U.S. President Franklin D. Roosevelt in response to the Great Depression aimed at economic recovery and social reform.

Fascism: An authoritarian political ideology that rose during the Great Depression, characterized by dictatorial power, strong regimentation of society, and the suppression of opposition.