Final answer:
The Great Depression, initiated by the stock market crash in 1929, was exacerbated by reduced spending, the Dust Bowl, bank failures, and high unemployment. It lasted through the 1930s until World War II's economic demands reversed the downturn. Franklin Roosevelt's New Deal, notably the WPA, played a critical role in providing employment and public works projects, fundamentally changing the government's role in the economy.
Step-by-step explanation:
Summary of Events Leading to the Great Depression
The Great Depression was a period of severe economic downturn that began with the stock market crash in October 1929 and lasted through the 1930s. Several key factors contributed to this catastrophic financial collapse beyond the market crash itself. During the 1920s, the United States witnessed an era of prosperity; however, the foundation was unstable, characterized by an over-reliance on credit and speculative investments.
Consumers and businesses curtailed spending due to limited income and a lack of confidence, which in turn led to a steep decline in demand for goods. Consequently, production slowed, businesses began to fail, and unemployment rates soared. By 1930, unemployment had tripled to 4.5 million, and the country's gross national product had plummeted by more than 25%, manifesting the onset of a deep recession.
The struggles continued with the Dust Bowl, a series of droughts that devastated agriculture, particularly in the central United States, further stressing the already fragile economy. Bank failures erased savings and dissuaded investment, leaving up to a third of the workforce unemployed. The resulting Hoovervilles, shantytowns named derisively after President Hoover, underscored his administration's failure to adequately address the crisis.
In this new reality, private charities were overwhelmed, and public relief programs were largely ineffective. Not until the election of Franklin Roosevelt and the advent of the New Deal were relief efforts like the Works Progress Administration (WPA) employed to provide jobs and stabilize the economy. This government intervention marked a significant shift in the public's expectations of federal involvement. Moreover, the construction of infrastructural projects, such as the Hoover Dam, provided much-needed employment and boosted morale.
The Great Depression's sweeping impact on the American and global economy was unprecedented. It wasn't until the advent of World War II that the relentless grip of the economic depression began to ease as military and industrial efforts ramped up, creating jobs and rejuvenating the economy.