What was the Great Depression?

The Great Depression refers to a period in the 1930s that was characterized by an unprecedented level of economic decline, which is why it is identified as the most severe episode of economic decline observed to date. This era began with the stock market crash in October 1929, leading to widespread unemployment, a significant drop in consumer spending, bank failures, and a collapse of industrial output. The effects were felt globally, with many countries experiencing similar economic turmoil. The gravity and duration of this economic downturn set it apart from other economic downturns, making it a key event studied in economics. Understanding the depth of this crisis helps illustrate the importance of government intervention in the economy and the development of economic policies aimed at recovery.