Great Depression: causes, transmission, and effects

Definition and timeline of the Great Depression

The Great Depression was a severe worldwide economic downturn lasting from 1929 to 1939. It was marked by very high unemployment and poverty, sharp drops in industrial production and international trade, and widespread failures of banks and businesses. The crisis is commonly traced to the Wall Street Crash of 1929 in the United States, after which economic damage spread globally, affecting countries such as the United States, the United Kingdom, and Germany. In the United States, optimism early on after the crash gave way to a prolonged slump: stock values continued falling until a low point around July 1932, and confidence in the financial system collapsed. By 1933, the U.S. unemployment rate had risen to about 25%, many banks had failed (including thousands of closures by 1930–1933), and the economy contracted dramatically. Policy responses also shaped the timeline: President Herbert Hoover initially resisted heavy intervention and signed the Smoot–Hawley Tariff Act in 1930, which worsened conditions through reduced trade and retaliation. In 1933, Franklin D. Roosevelt took office and launched expansive New Deal programs aimed at relief and job creation. Internationally, the Depression deepened as protectionism reduced world trade, and the gold standard helped spread deflation across countries; recovery varied, and the Depression effectively ended with the economic stimulus of World War II beginning in 1939.

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Roaring Twenties context and speculation-driven inequality

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