The Great Depression (1929–1939)

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The Great Depression, spanning from 1929 to 1939, was a global economic downturn marked by severe declines in industrial production, deflation, and high unemployment. It began with the stock market crash of 1929 in the United States, which had a ripple effect worldwide. Factors contributing to the Depression included the gold standard, banking panics, and protectionist policies like the Smoot-Hawley Tariff Act. The lack of effective monetary policy and international cooperation exacerbated the crisis. The Depression had profound social and economic impacts. In the U.S., unemployment peaked at over 25%, while many banks failed. The New Deal policies under President Roosevelt aimed to mitigate these effects. Globally, the Depression led to political instability, notably in Germany, where it contributed to the rise of the Nazi Party. The event underscored the importance of coordinated economic policies and international cooperation, leading to significant changes in economic theory and policy.