Understanding the Great Depression
The Great Depression, which lasted from 1929 to the late 1930s, was a severe economic downturn that affected millions of people worldwide. It was a period of great turmoil, with widespread unemployment, poverty, and despair. In this worksheet, we will explore the causes, effects, and key events of the Great Depression, as well as the policies and programs implemented to address it.
Causes of the Great Depression
The Great Depression was caused by a combination of factors, including:
- Stock Market Crash of 1929: The stock market crash of 1929 is often seen as the trigger that set off the Great Depression. On Black Tuesday, October 29, 1929, stock prices plummeted, leading to a massive loss of wealth for investors.
- Overproduction and Underconsumption: In the 1920s, there was a surge in industrial production, but many Americans were unable to afford the goods being produced. This led to a mismatch between supply and demand, resulting in a buildup of inventory and a subsequent decline in production.
- Credit Crisis: Many Americans had bought stocks on margin (using borrowed money), and when the stock market crashed, they were unable to pay back their loans. This led to a credit crisis, as banks and other lenders found themselves with large amounts of bad debt.
- Banking System: The banking system at the time was fragile and lacked effective regulation. Many banks had invested heavily in the stock market and had loaned money to speculators. When the stock market crashed, these banks found themselves with large losses and began to fail.
Effects of the Great Depression
The effects of the Great Depression were far-reaching and devastating:
- Unemployment: Unemployment soared, with some estimates as high as 25%. Many people lost their jobs, and those who were lucky enough to keep their jobs often had their hours and wages reduced.
- Poverty: Millions of Americans were forced into poverty, with many families unable to afford basic necessities like food and shelter.
- Homelessness: Homelessness became a major problem, with many people forced to live in shantytowns, known as Hoovervilles.
- Global Trade: International trade declined sharply, as countries imposed protectionist policies, such as tariffs and quotas, to protect their domestic industries.
Key Events of the Great Depression
Some key events of the Great Depression include:
- 1929: Stock Market Crash: The stock market crash of 1929 marked the beginning of the Great Depression.
- 1930: Bank Failures: Bank failures became common, as depositors rushed to withdraw their money, leading to a credit crisis.
- 1931: Unemployment Soars: Unemployment soared, with some estimates as high as 15%.
- 1932: Hoovervilles: Shantytowns, known as Hoovervilles, began to appear in cities across the United States.
- 1933: Inauguration of Franklin D. Roosevelt: Franklin D. Roosevelt was inaugurated as President, promising a “New Deal” for Americans.
Policies and Programs of the New Deal
The New Deal was a series of policies and programs implemented by President Roosevelt to address the Great Depression:
- Civilian Conservation Corps (CCC): The CCC was a program that provided jobs for young men in conservation and infrastructure projects.
- Works Progress Administration (WPA): The WPA was a program that provided jobs for millions of Americans in construction, arts, and literacy projects.
- National Recovery Administration (NRA): The NRA was a program that established codes of fair competition and set minimum wages and working conditions.
- Social Security Act: The Social Security Act was a program that provided financial assistance to the elderly, the disabled, and the unemployed.
Notes
📝 Note: The Great Depression was a global phenomenon, with many countries affected by the economic downturn. However, the policies and programs implemented in the United States were unique and had a significant impact on the country's recovery.
📊 Note: The Great Depression led to a fundamental transformation of the United States economy, with a shift from laissez-faire capitalism to a more interventionist approach. This transformation had far-reaching consequences for the country's economic and social development.
Conclusion
The Great Depression was a pivotal event in American history, with far-reaching consequences for the country’s economy and society. Understanding the causes, effects, and key events of the Great Depression is essential for grasping the significance of this period. The policies and programs implemented during the New Deal had a lasting impact on the country’s economic and social development, shaping the course of American history.
FAQ Section
What was the main cause of the Great Depression?
+The main cause of the Great Depression was the stock market crash of 1929, which triggered a credit crisis and led to a decline in industrial production and employment.
What was the New Deal?
+The New Deal was a series of policies and programs implemented by President Franklin D. Roosevelt to address the Great Depression, including the Civilian Conservation Corps, Works Progress Administration, and Social Security Act.
How did the Great Depression affect global trade?
+The Great Depression led to a decline in global trade, as countries imposed protectionist policies, such as tariffs and quotas, to protect their domestic industries.
Related Terms:
- End of Great Depression worksheet
- Great Depression questions pdf
- Great Depression Notes
- The Great Depression PDF
