Great Depression

Definition

The Great Depression was a severe worldwide economic downturn that lasted from 1929 to the late 1930s, marked by a dramatic decline in economic activity, widespread unemployment, and significant financial instability. This period had profound effects on social and political structures globally, leading to major labor movements, influencing the course of wars, contributing to the rise of fascism, and setting the stage for World War II.

5 Must Know Facts For Your Next Test

1. The Great Depression led to an unemployment rate in the United States that peaked at around 25%, with millions losing their jobs and livelihoods.
2. Farmers were hit particularly hard during this time due to falling crop prices and severe droughts, which contributed to events like the Dust Bowl.
3. International trade collapsed by about 65% as countries imposed tariffs in an effort to protect their economies, worsening the global economic crisis.
4. The Great Depression prompted significant changes in government policy, with many nations adopting more interventionist approaches to stabilize their economies.
5. Labor movements gained momentum as workers organized strikes and protests demanding better wages, job security, and improved working conditions amidst economic hardship.

Review Questions

• How did the Great Depression influence labor movements in various countries?
  • The Great Depression significantly impacted labor movements as widespread unemployment and economic hardship drove workers to organize for better conditions. In many countries, unions became more active, advocating for fair wages and job security. The desperate economic situation made workers more willing to strike and demand rights, leading to greater recognition of labor rights and legislation protecting workers in several nations.
• Discuss how the Great Depression affected the course of World War I's aftermath and global politics.
  • The Great Depression had lasting effects on the political landscape following World War I. Economic instability undermined democratic governments and created fertile ground for extremist ideologies. As nations struggled with economic recovery, many saw a rise in authoritarian regimes that promised stability, ultimately reshaping global politics in a way that set the stage for World War II.
• Evaluate the role of the Great Depression as a catalyst for the rise of fascism in Europe.
  • The Great Depression served as a critical catalyst for the rise of fascism in Europe by creating widespread discontent with existing political systems. Economic turmoil led people to seek out radical solutions, with many turning to leaders who promised national revival and stability through authoritarian rule. In countries like Germany and Italy, this economic despair allowed fascist parties to gain traction by exploiting fears of communism and portraying themselves as saviors capable of restoring national pride and economic stability.

Related terms

Stock Market Crash of 1929: A sudden and severe collapse of stock prices that occurred in late October 1929, which is widely considered the beginning of the Great Depression.

New Deal: A series of programs and reforms enacted by President Franklin D. Roosevelt in response to the Great Depression, aimed at providing relief, recovery, and reform to the American economy.

Unemployment Rate: The percentage of the labor force that is jobless and actively seeking employment, which skyrocketed during the Great Depression as businesses failed and jobs disappeared.