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The Great Depression was a severe economic downturn that lasted from 1929 to the late 1930s, affecting the entire world. The crisis was triggered by the stock market crash on October 29, 1929, known as "Black Tuesday." The crash marked the end of the economic boom of the 1920s and led to a period of economic instability and unemployment.
Inflation played a crucial role in the Great Depression, as it reduced the purchasing power of consumers and led to a decline in demand for goods and services. At the same time, the stock market crash caused a significant loss of wealth, as investors lost confidence in the market and withdrew their investments.
The effects of the Great Depression went beyond the economic realm. The crisis led to significant societal changes, such as increased poverty and unemployment, a rise in crime rates, and a decline in marriage and birth rates. The government responded to the crisis by implementing new laws and regulations aimed at preventing a similar event from happening again.
One of the most significant changes was the establishment of the Federal Deposit Insurance Corporation (FDIC), which insured bank deposits and increased public confidence in the banking system. The Securities and Exchange Commission (SEC) was also created to regulate the stock market and prevent fraudulent activities.
President Franklin D. Roosevelt's New Deal program aimed at restoring the economy by increasing public spending, creating jobs, and implementing social welfare programs. The New Deal included programs such as the Civilian Conservation Corps, the Tennessee Valley Authority, and the Social Security Act, which provided assistance to the unemployed and the elderly.
Overall, the Great Depression was a devastating period in world history, with far-reaching economic, social, and political consequences. It underscored the importance of regulating financial markets and implementing social safety nets to protect vulnerable populations during times of economic crisis.