The Great Depression was a severe worldwide economic depression that took place during the 1930s. It was the longest, deepest, and most widespread depression of the 20th century. The Great Depression began with the stock market crash of 1929, which caused a sudden and dramatic decline in stock prices and a collapse of the American banking system. The effects of the Great Depression were felt around the world, as international trade and investment plummeted. Unemployment rates skyrocketed, reaching as high as 25% in some countries. Many people lost their life savings, homes, and businesses, leading to widespread poverty and destitution. The Great Depression was characterized by deflation, a decrease in the overall price level of goods and services. This led to a decrease in production and consumption, exacerbating the economic downturn. Governments and central banks implemented various policies and measures in an attempt to alleviate the crisis, but these efforts were largely ineffective. The Great Depression had a profound impact on society and politics. It led to the rise of extremist ideologies such as fascism and communism, as people sought solutions to the economic and social problems they were facing. It also brought about significant changes in economic theory and policy, with the emergence of Keynesian economics and the welfare state. The Great Depression finally ended in the late 1930s and early 1940s, largely due to the economic stimulus provided by World War II. However, its effects were long-lasting, and it had a lasting impact on individuals, families, and economies around the world.
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