The Great Depression Quizzes And Test Answers

The Great Depression was a period of global economic hardship that lasted from 1929 to the early 1940s. It was the longest and most severe depression ever experienced by the industrialized world. The Great Depression began in the United States after a major fall in stock prices that began around September 4, 1929, and became worldwide news with the stock market crash of October 29, 1929 (known as Black Tuesday). From there, it quickly spread to all countries around the world. The effects of The Great Depression were devastating, far-reaching and long-lasting. The United States’ GDP dropped by half, unemployment rose to 25%, international trade plummeted by 60%, industrial output fell by 45% and prices declined 10%. Many banks failed, leaving people without their savings or investments. People’s homes were lost due to inability to pay mortgages; businesses could not generate enough profit to stay afloat; poverty moved from rural areas into cities; soup kitchens provided meals for those unable to secure work; homeless shelters overflowed with people lacking basic necessities; families were forced into shantytowns on city outskirts as their only means of shelter. In order for economic recovery from The Great Depression, governments had to take drastic steps such as introducing new regulations for banks, increasing public works spending and creating social safety nets for those who need help. In addition, government intervention was important in providing relief programs such as the New Deal which provided aid through subsidies and public works projects while also providing jobs opportunities through relief programs such as Civilian Conservation Corps (CCC) or Works Progress Administration (WPA). International organizations such as League of Nations also helped support global recovery efforts through international loans and debt restructuring agreements between countries affected by The Great Depression. The aftermath of The Great Depression changed how governments regulated markets globally while bringing about an era of increased government intervention in order both stabilize economies during times of distress and reduce inequalities among citizens at all levels. Furthermore, it has become clear that financial crises can be caused not only by collective external shocks but also individual mistakes that can affect whole economies if left unchecked something which has been kept in mind throughout history ever since then.