 The Great Depression was a time when the economy became very bad, starting in 1929.
 It began in the United States after the Stock Market Crash on October 29, 1929 (called Black
Tuesday)
 The Depression lasted for about 10 years and affected many countries.
 Many people lost their jobs, banks closed, and businesses went out of work.
 It was a tough time for families, with many struggling to get enough food and money.
 The Great Depression changed the way governments handled the economy after that.
Several things caused the Great Depression:
 Stock Market Crash of 1929: Many people invested in the stock market, but stock
prices were too high and suddenly fell. People lost huge amounts of money.
 Bank Failures: Many banks had also invested in the stock market. When it crashed,
they lost money too. Banks ran out of money, and people couldn't get their savings back.
 Overproduction: Factories and farms produced more goods than people could buy,
causing prices to drop. Businesses made less money and had to close or fire workers.
 Less Spending: People and businesses stopped spending money because they were
worried about the economy. This made things even worse, as businesses earned less
and had to cut jobs.
 Drought (Dust Bowl) : In the U.S., a severe drought hurt farming, especially in the
Midwest. Farmers lost their crops and struggled to survive, which also hurt the
economy.
These problems together led to a long period of poverty and high unemployment.
 Initial Reaction (1929-1930)- Shock, denial, and optimism that the market would
recover- Many believed it was a temporary downturn.
 Panic and Desperation (1930-1933)- Fear, anxiety, and desperation as
unemployment soared- Bread lines, soup kitchens, and shantytowns (Hooverville)
emerged- Suicides, mental health issues, and marital breakdowns increased.
 Protest and Activism (1934-1936)- Labor unions organized strikes and protests-
Civil unrest, marches, and demonstrations (e.g., Bonus Army)- Political movements
like socialism and communism gained popularity.
 Resilience and Adaptation (1937-1941)- People adapted to new economic realities.
 To stabilize the Great Depression, the U.S. government, particularly under President Franklin D.
Roosevelt, introduced a set of policies known as the New Deal. These policies aimed to restore the
economy and provide relief. Key actions included:1.
 Relief Programs: Created jobs and provided direct aid to people in need (e.g., the Civilian Conservation
Corps and Works Progress Administration).
 2. Banking Reforms: Closed and stabilized banks, restoring people's trust (e.g., Emergency Banking Act
and FDIC to insure deposits).
 3. Social Security: Established unemployment insurance and pensions to protect vulnerable populations
 .4. Industrial and Agricultural Reforms: Set fair practices and supported prices to help businesses and
farmers recover (e.g., Agricultural Adjustment Act).
The Great Depression (1929-1941) was a global economic downturn triggered by
the 1929 stock market crash. Unemployment peaked at 25% in the US, with 75,000
bank failures and 65% decline in global trade. Franklin D. Roosevelt's New Deal and
WWII mobilization spurred recovery. The crisis led to Keynesian economics, social
safety nets, and regulatory reforms, reshaping modern capitalism.
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