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Activity Discussion History significance of the Great Depression

  • significance of the Great Depression

    Posted by Aarush on July 4, 2024 at 12:06 pm

    What was the significance of the Great Depression?

    Glenda replied 2 weeks, 6 days ago 2 Members · 1 Reply
  • 1 Reply
  • Glenda

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    July 5, 2024 at 11:33 am
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    The Great Depression was a severe and prolonged economic downturn that lasted from 1929 to the late 1930s, affecting many countries across the world. Its significance can be summarized in several key points:

    1. Global Impact: The Great Depression was a global phenomenon, with economic downturns and high unemployment rates observed in almost every country. It was the longest and most severe depression experienced by the industrialized Western world.
    2. Causes and Consequences: The Depression was caused by a combination of factors, including the stock market crash of 1929, overproduction, falling exports, income inequality, and the gold standard. The consequences were devastating, with widespread business failures, massive unemployment, and a significant decline in personal income and economic output.
    3. Unemployment: Unemployment rates soared, with the United States experiencing a peak of 24.9% in 1933. This led to widespread poverty, homelessness, and social unrest, as people struggled to find work and support themselves.
    4. Government Response: The Great Depression led to significant changes in economic policy and government intervention. President Franklin D. Roosevelt’s New Deal programs, such as the Works Progress Administration and the Civilian Conservation Corps, aimed to stimulate economic recovery and provide relief to those affected.
    5. Long-Term Effects: The Depression had lasting impacts on the global economy and society. It led to the establishment of new economic institutions, such as the Federal Deposit Insurance Corporation (FDIC) and the Securities and Exchange Commission (SEC), to regulate financial markets and protect investors. The Depression also influenced the development of macroeconomic policy and economic theory, emphasizing the role of government intervention in stabilizing the economy.
    6. Comparison to Other Crises: The Great Depression was significantly more severe than other economic downturns, including the Great Recession of 2007-2009. The Depression lasted for over a decade, and its effects were felt across the world, making it a pivotal event in modern economic history.

    In summary, the Great Depression was a global economic crisis that had far-reaching consequences for the world economy and society, leading to significant changes in economic policy and institutions, and shaping modern economic theory and practice.

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