The Great Depression was the longest, deepest, and most widespread depression of the 20th century. The consequences of the Great Depression were felt by all nations, rich and poor. The Great Depression began in the United States with the stock market crash on October 29, 1929 (known as Black Tuesday). The global gross domestic product (GDP) decreased by an estimated 15% from 1929 and 1932. During the Great Recession, global GDP decreased by less than 1% from 2008 to 2009.
The Great Depression had many causes, both domestic and international. Domestic causes included the unregulated financial system, the overproduction of goods, and the lack of consumer demand. International causes included the global economic crisis, the rise of protectionism, and the outbreak of World War II.
The Great Depression had a devastating impact on the United States and the world. In the United States, the unemployment rate rose to nearly 25%, and millions of Americans lost their jobs, homes, and savings. The Great Depression also caused a decline in output, investment, and trade.
The Great Depression led to a number of reforms in the United States, including the creation of the Securities and Exchange Commission (SEC) to regulate the financial system, the Federal Deposit Insurance Corporation (FDIC) to protect bank deposits, and the Social Security Act to provide social insurance for the elderly, unemployed, and disabled.
The Great Depression also led to a number of international reforms, including the Bretton Woods Agreement to establish a new global monetary system, and the General Agreement on Tariffs and Trade (GATT) to reduce trade barriers.
The Great Depression was a major turning point in history. It led to a number of reforms that helped to prevent another depression. These reforms have helped to make the global economy more stable and resilient.