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Great Depression

Definition

The Great Depression was a severe worldwide economic downturn that lasted from 1929 to approximately 1939. It was characterized by high unemployment rates, bank failures, poverty, and overall economic hardship.

Analogy

Imagine being at a school dance where nobody is dancing because they're all feeling sad and down. Similarly, during the Great Depression, people were reluctant to spend money and businesses struggled due to widespread poverty and uncertainty.

Related terms

Stock Market Crash: Refers specifically to Black Tuesday on October 29th, 1929 when stock prices plummeted leading many investors to lose large amounts of money. Think of it as a roller coaster where the ride suddenly drops, causing everyone on board to panic.

New Deal: A series of economic programs and reforms implemented by President Franklin D. Roosevelt with the goal of providing relief, recovery, and reform during the Great Depression. It's like a toolbox full of strategies designed to fix a broken economy.

Hoovervilles: Makeshift communities or shantytowns that emerged during the Great Depression, named after President Herbert Hoover who was blamed for the economic crisis. Imagine building a fort out of cardboard boxes in your backyard because you can't afford a proper house.