Great Depression

Definition

The Great Depression was a severe worldwide economic downturn that lasted from 1929 until the late 1930s. It began with the stock market crash in October 1929 and led to widespread unemployment, poverty, and economic instability, creating an environment ripe for the rise of authoritarian and totalitarian regimes in various countries. The impact of this crisis reshaped governments and economies, as leaders sought solutions to restore order and stability.

5 Must Know Facts For Your Next Test

1. The Great Depression was the most severe economic downturn in modern history, leading to unemployment rates as high as 25% in the United States.
2. Many countries experienced social unrest and political instability during the Great Depression, creating fertile ground for authoritarian leaders to gain power.
3. The international nature of the Great Depression resulted in global economic decline, impacting countries around the world and prompting shifts toward protectionist policies.
4. In response to the crisis, several nations turned to totalitarian regimes that promised stability and recovery, often at the expense of individual freedoms.
5. The economic consequences of the Great Depression led to major changes in government intervention in the economy, with a focus on regulation and social welfare.

Review Questions

• How did the Great Depression contribute to the rise of authoritarian regimes in various countries?
  • The Great Depression created widespread economic hardship, which led to discontent among populations suffering from high unemployment and poverty. In this context, authoritarian regimes emerged as they promised stability and solutions to the crisis. Countries like Germany and Italy saw leaders like Hitler and Mussolini gain power by exploiting public fear and dissatisfaction, often using propaganda to maintain control over their citizens.
• Discuss how the New Deal sought to address the economic challenges posed by the Great Depression and its implications for government intervention.
  • The New Deal was a series of initiatives by President Franklin D. Roosevelt aimed at providing relief, recovery, and reform during the Great Depression. It included programs that created jobs, provided financial support, and implemented regulations to stabilize financial markets. This shift represented a significant increase in government intervention in the economy, reshaping Americans' expectations regarding their government's role in ensuring economic security.
• Evaluate the long-term impacts of the Great Depression on political ideologies around the world, particularly in relation to authoritarianism and democracy.
  • The Great Depression had profound long-term effects on political ideologies globally. It demonstrated how economic crises could destabilize democracies, leading many nations toward authoritarianism as people sought quick solutions to their problems. This shift not only altered national political landscapes but also influenced future governmental policies, as countries recognized the need for social safety nets and economic regulation to prevent similar crises. The legacy of this era continues to affect contemporary debates about government roles in economies today.

Related terms

Stock Market Crash of 1929: The sudden and dramatic decline of stock prices in the U.S. stock market, which marked the beginning of the Great Depression.

New Deal:

A series of programs and reforms introduced by President Franklin D. Roosevelt to combat the effects of the Great Depression and promote economic recovery.

Authoritarianism: A political system characterized by strong central power and limited political freedoms, often arising in response to economic crises.