Great Depression (jan 1, 1929 – jan 1, 1939)

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The Great Depression was a severe global economic downturn from 1929 to 1939, marked by high unemployment and poverty rates, drastic reductions in liquidity, industrial production, and trade, and widespread bank and business failures worldwide. The crisis began in the United States with the devastating Wall Street stock market crash of October 1929, and affected countries like the U.S., the United Kingdom, and Germany.

The "Roaring Twenties" period had led to increased wealth inequality and minimal regulation of banks, resulting in loose lending and widespread debt. By 1929, declining spending led to reduced manufacturing output and rising unemployment. Share values continued to rise until the Wall Street crash, which continued for three years, accompanied by a loss of confidence in the financial system.

By 1933, the unemployment rate in the U.S. had risen to 25%, one-third of farmers lost their land, and half of its 25,000 banks went out of business. The U.S. federal government under President Herbert Hoover was unwilling to intervene heavily in the economy, leading to Franklin D. Roosevelt's expansive New Deal programs in 1933.

Between 1929 and 1932, worldwide GDP fell by an estimated 15%, with the U.S. experiencing a 30% contraction in GDP. Recovery varied greatly around the world, with some economies like the U.S., Germany, and Japan starting to recover by the mid-1930s, while others like France did not return to pre-shock growth rates until later in the decade.

The exact causes of the Great Depression are disputed, with some historians focusing on non-monetary economic causes, such as the Wall Street crash, while others argue that failures of monetary policy played a more prominent role.

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