What was the significance of the Panic of 1929 and "Great" Depression of 1929-1945? Answer with one sentence.
The Panic of 1929 and the subsequent Great Depression were significant economic crises that had lasting effects on global economies, leading to widespread unemployment, poverty, and a decline in industrial production.
give me 5 causes
1. Stock market crash of 1929: The collapse of the stock market on October 29, 1929, known as Black Tuesday, triggered the onset of the Great Depression.
2. Overproduction and underconsumption: Businesses produced more goods than consumers could afford to buy, leading to a surplus of products and layoffs in many industries.
3. Bank failures: The failure of thousands of banks due to risky investments and depositor withdrawals led to a loss of confidence in the banking system and a contraction of credit.
4. Hawley-Smoot Tariff Act: The enactment of protective tariffs in the U.S. and retaliatory trade measures by other countries stifled international trade, exacerbating the economic downturn.
5. Drought and Dust Bowl: Severe drought conditions in the Midwest combined with poor agricultural practices led to the Dust Bowl, causing widespread crop failures, poverty, and displacement of farmers.
give me 5 effects
1. Unemployment: The Great Depression led to staggering levels of unemployment, with millions of people losing their jobs and struggling to make ends meet.
2. Economic hardship: The widespread poverty and reduced consumer spending resulted in a decline in industrial production, business failures, and a sharp drop in GDP.
3. Social unrest: The economic hardships of the Great Depression led to increased social unrest, protests, and strikes as people demanded government intervention and relief.
4. Global impact: The Great Depression had a profound impact on economies worldwide, leading to a decline in international trade, currency devaluations, and political instability in many countries.
5. New Deal policies: The Great Depression prompted the implementation of Franklin D. Roosevelt's New Deal programs, which aimed to provide relief, recovery, and reform through government intervention and social welfare initiatives.
give me 2 more causes
6. Credit and debt excesses: Prior to the Great Depression, there was a significant increase in consumer and corporate debt, driven by easy access to credit and speculative investments in the stock market and real estate.
7. Decline in global economic activity: The slowdown in global economic growth and trade, exacerbated by protectionist trade policies and the instability of the international monetary system, contributed to the onset of the Great Depression.
give me 2 more effects
6. Psychological impact: The Great Depression had lasting psychological effects on individuals and communities, leading to feelings of hopelessness, anxiety, and despair, as well as changes in societal attitudes toward wealth, consumption, and financial security.
7. Long-term reforms and regulations: The experience of the Great Depression resulted in the implementation of new regulations and reforms, including financial oversight measures, social safety nets, and labor laws, aimed at preventing future economic crises and protecting against similar hardships.