Logo
Logo
Log inSign up
Logo

Tools

AI Concept MapsAI Mind MapsAI Study NotesAI FlashcardsAI Quizzes

Resources

BlogTemplate

Info

PricingFAQTeam

info@algoreducation.com

Corso Castelfidardo 30A, Torino (TO), Italy

Algor Lab S.r.l. - Startup Innovativa - P.IVA IT12537010014

Privacy PolicyCookie PolicyTerms and Conditions

The Great Depression

The Great Depression, starting in 1929, was a severe worldwide economic downturn marked by the stock market crash, high unemployment, and poverty. It led to a significant drop in global GDP, widespread hardship in urban and rural areas, and a decline in international trade. Recovery varied by country, with some nations only rebounding with the onset of World War II. The period was characterized by deflation, reduced tax revenues, and protectionist policies that further hindered economic growth.

See more
Open map in editor

1

4

Open map in editor

Want to create maps from your material?

Insert your material in few seconds you will have your Algor Card with maps, summaries, flashcards and quizzes.

Try Algor

Learn with Algor Education flashcards

Click on each Card to learn more about the topic

1

Duration of the Great Depression

Click to check the answer

Began in 1929, lasted until late 1930s.

2

Economic impacts during the Great Depression

Click to check the answer

High unemployment, poverty, low profits, deflation, falling farm incomes.

3

Social consequences of the Great Depression

Click to check the answer

Lost opportunities for growth and personal advancement.

4

Many countries didn't fully recover from the Great Depression until World War II began, although some saw improvements in the ______s.

Click to check the answer

mid-1930s

5

During the Great Depression, international trade fell by over ______, while unemployment in the ______ reached ______.

Click to check the answer

50% United States 25%

6

Great Depression impact on crop prices

Click to check the answer

Crop prices fell by 60%, worsening farmers' hardships.

7

Environmental disaster during the Great Depression

Click to check the answer

The Dust Bowl devastated US farms, displacing hundreds of thousands.

8

The ______ ______ Crash triggered the Great Depression and was a sign of deeper economic issues.

Click to check the answer

Wall Street

9

The economic downturn after 1930 was marked by overproduction, reduced ______, and large income gaps.

Click to check the answer

exports

10

A temporary surge of ______ in 1930 led to a fleeting recovery of the market.

Click to check the answer

optimism

11

As the economy worsened, consumer confidence plummeted, causing a significant drop in ______ and ______.

Click to check the answer

spending investment

12

Despite low ______ rates, deflation and a hesitance to take on debt hindered efforts to revive the economy.

Click to check the answer

interest

13

Impact of deflation in 1931

Click to check the answer

Deflation caused prices and wages to fall, reducing consumer spending and business investment, worsening the economic decline.

14

Effect of the Great Plains drought on agriculture

Click to check the answer

Drought led to crop failures, price collapses, and farm foreclosures, despite federal aid, devastating the agricultural sector.

15

Consequences of Smoot-Hawley Tariff Act

Click to check the answer

Raised import duties aimed to protect U.S. industries but resulted in decreased international trade and intensified the global depression.

16

Countries responded differently to the crisis, with some managing to ______ the effects more effectively.

Click to check the answer

mitigate

17

______ trade policies contributed to worsening the global economic crisis by greatly reducing international trade.

Click to check the answer

Protectionist

18

By the year ______, international trade had shrunk to a small fraction of its volume before the Depression.

Click to check the answer

1933

19

Economic measures such as industrial production, wholesale prices, and ______ rates were indicators of the Great Depression's profound impact.

Click to check the answer

unemployment

Q&A

Here's a list of frequently asked questions on this topic

Similar Contents

History

The Great Depression and Its Causes

View document

Economics

Evaluating the New Deal's Effectiveness During the Great Depression

View document

Economics

The Great Depression: A Multifaceted Economic Catastrophe

View document

History

The Great Depression and the Environmental Catastrophe of the Dust Bowl

View document

The Onset of the Great Depression

The Great Depression, which began in 1929 and lasted until the late 1930s, was an unprecedented global economic crisis. It was triggered by a catastrophic collapse in stock prices in the United States, starting with a significant market downturn in September 1929 and culminating in the stock market crash on October 29, 1929, known as Black Tuesday. This event heralded a decade of high unemployment, poverty, low profits, deflation, plunging farm incomes, and lost opportunities for economic growth and personal advancement.
Long line of people in 1930s clothes wait outside a classical building with columns, under an overcast sky, expressing tiredness and worry.

Global Economic Impact

The Great Depression's impact was profound and widespread, with global GDP estimated to have fallen by as much as 15% from 1929 to 1932, far surpassing the economic downturn of the 2008-2009 Great Recession. Although some nations began to recover in the mid-1930s, the full recovery for many did not arrive until the advent of World War II. The Depression saw a dramatic decline in output, falling prices, reduced tax revenues, and plummeting international trade, which decreased by more than 50%. Unemployment soared, reaching 25% in the United States and higher levels in some other countries.

Widespread Hardship in Urban and Rural Areas

The Great Depression affected both urban and rural communities. Industrial cities faced massive unemployment as factories closed or cut back operations. The agricultural sector suffered from falling commodity prices, with crop prices dropping by about 60%, exacerbating the plight of farmers. The situation was made worse by environmental disasters such as the Dust Bowl in the United States, which devastated agricultural regions and displaced hundreds of thousands of people.

The Wall Street Crash and Economic Policies

The Wall Street Crash is often considered the spark that ignited the Great Depression, though it was also a symptom of underlying economic imbalances, including overproduction, declining exports, and vast income disparities. After the initial crash, a brief period of optimism led to a short-lived market recovery in 1930. However, the downturn persisted, and the economy continued to deteriorate. In response, governments and businesses initially increased spending, but consumer confidence had been shattered, leading to a sharp decline in spending and investment. Despite low-interest rates, deflationary pressures and a general reluctance to borrow stifled economic recovery efforts.

The Spiral of Economic Decline

The economic decline worsened in 1931, as deflation set in, prices and wages fell, and unemployment rose. The agricultural sector was particularly affected, with crop prices collapsing and severe drought conditions in the Great Plains leading to widespread farm foreclosures despite federal relief efforts. The economic troubles in the United States had a ripple effect, dragging down other economies and leading to a global downturn. Protectionist policies, such as the Smoot-Hawley Tariff Act in the U.S., intended to protect domestic industries, instead further reduced international trade and exacerbated the Depression.

International Consequences and Recovery Efforts

The economic downturn in the United States had far-reaching international effects, influencing the economic stability of countries around the world. The response of individual nations varied, with some able to mitigate the impact more effectively than others. Protectionist trade policies, while aimed at preserving domestic jobs, ultimately intensified the global economic crisis by severely curtailing international trade. By 1933, global trade had contracted to just a fraction of its pre-Depression volume. The period's economic indicators, including industrial production, wholesale prices, foreign trade, and unemployment rates, reflect the extensive and profound nature of the Great Depression's impact on the world economy.