It was the greatest and also the most extended economic downfall and recession in the history of the modern world. It started with the United States market crash of 1929 and did not actually end till the year 1946, which was after World War II. Historians and economists all over the world often cite that the ‘Great Depression’ was also the most catastrophic economic situation in the history of the 20th century.
There was actually a short depression which lasted from 1920 to 1921, and this one is actually known as the ‘Forgotten Depression,’ where the United States stock market fell by almost 50% and also corporate profits declined over 90%. The U.S economy enjoyed some robust growth when the rest of the decade knocked on the door. The era came to be recognized as ‘The Roaring Twenties,’ and it was a period when the American public found out about the stock market and decided to dive in head first.
Here are a few notable bullet points to remember:
- The Great Depression was the longest and greatest economic downfall, recession, and crisis in the history of the modern world.
- In the year 1929, there was a market crash that wiped out a great deal of nominal wealth for businessmen and individuals of all kinds.
- The American public actually began a whole frenzy where they started investing in the speculative markets in the 1920s.
- Many factors contributed to the Great Depression. Factors like inactivity, which was followed by over-action by the Fed.
- Presidents Hoover and Roosevelt tried mitigation of the impact of the depression with the use of some government policies.
- Neither the beginning of WWII nor the government policies can be credited single-handedly with the ending of the Great Depression.
- Trade routes which were created during WWII actually remained open and also helped greatly so that the market could recover.
- Finally, the Great Depression was actually the result of some unlucky combinations of factors- a FED that was flip-flopping, protectionist tariffs and also inconsistently applied efforts by the government interventionists. It could have even been avoided or at least shortened by a change in any of the above factors.
- The debate still remains to this day whether the interventions were actually appropriate, and many reforms from the New Deal-like social security, insurance for unemployment and also agricultural subsidies which exist to this very day. An assumption that the federal government should actually act when there is a national economic crisis is undoubtedly strongly supported. This kind of legacy is actually one of the reasons the Great Depression is actually considered as one of the seminal events in the history of the modern United States Of America.