Top 10 Facts About The Great Depression

Man dressed in worn coat lying down on pier on New York City docks during Great Depression (1935). Author Franklin D. Roosevelt Presidential Library and Museum. Wikimedia Commons

Top 10 Facts About The Great Depression

Throughout the 1930s, there was a terrible economic downturn that affected both the United States and the rest of the world. Millions of people’s lives were significantly impacted during this period of widespread poverty, unemployment, and financial difficulty. There are a few significant statistics and facts that assist to highlight the scope and severity of this historic event, despite the complexity and breadth of the causes and effects of the Great Depression. We will examine the top ten Great Depression facts in this post, shedding light on some of the most significant and fascinating features of this trying time in history.

1. It Was The Longest And Most Severe Economic Depression In Modern History

From 1929 to 1939, there was a ten-year era of economic misery and social unrest known as the Great Depression. It started with the 1929 stock market crash, which sparked a generalized panic and resulted in a precipitous decrease in economic activity. Many people lost their life savings, businesses collapsed, and unemployment shot through the roof. Across the world and in America, the Great Depression had a significant effect on society. It had a long-lasting effect on American culture and politics and contributed to the creation of new economic institutions and policies.

2. The stock Market Crash Of 1929 Triggered The Great Depression.

A solemn crowd gathers outside the Stock Exchange after the crash. 1929. Author US-gov. Wikimedia Commons

While many pundits believe that the 1929 stock market fall, often known as Black Tuesday, triggered the Great Depression, it was not the sole cause of it. Infact some historians argue that it only accelerated the global economic collapse of which it was also a symptom. During this time millions of shares were transacted in a single day, leading to devastating effects of the  businesses struggling to survive and unemployment rising. .

The economic fallout from the recession resulted in banks failing, farmers losing their land, and families losing their savings. The ten-year Great Depression had a significant impact on both the global and US economies.

3. The Unemployment Rate In The United States Rose To 25%

Unemployed men queued outside a depression soup kitchen opened in Chicago by Al Capone, 1931. Unknown author or not provided. Wikimedia Commons

According to NBER data, the rate of unemployment reached its highest point during the Great Depression in May 1933, at 25.6%. This translated to one in four individuals. According to the Bureau of Labor Statistics, the coronavirus epidemic triggered widespread economic activity shutdowns this year, leaving more than 23 million Americans without jobs as of mid-April. This led to led to widespread poverty and despair  that lasted the whole decade. 

4. Many people lost their life savings in bank failures

“Runs on Banks”: people milling about outside of bank. Unknown author or not provided. Wikimedia Commons

People started to withdraw money in significant quantities during the Great Depression, which resulted in a wave of bank failures as many banks went out of business. Millions of people’s savings were lost as a result of the over 9,000 bank failures in the United States between 1929 and 1933. It took years for the government to rebuild trust and stability in the financial system after the failure of so many banks, which resulted in a loss of confidence in the banking sector. The numerous bank failures added to the Great Depression’s economic suffering and left many families without any means of support.

5. The Great Depression had a profound impact on American culture, including music, literature, and art.

The arts and culture in America were significantly impacted by the Great Depression. The challenges, anxieties, and hopes of the American people during this trying time were captured by artists, musicians, and writers in their works. Although literature, like John Steinbeck’s “The Grapes of Wrath,” described the challenges of migrant workers and farmers during the Dust Bowl, Great Depression music, particularly jazz and blues, portrayed the anguish and heartache of the time. The severe realities of living during this period were conveyed in the Great Depression through art, particularly in the works of Diego Rivera and Dorothea Lange. Several of these works are still cherished and studied today, demonstrating how the Great Depression still has an impact on culture.

6. Entertainment Spots Became Popular During the Great Depression

The Athens Theatre. Author Ebyabe. Wikimedia Commons

In America, the Great Depression was a cruel time for the 15 million people who were jobless, the western farmers whose crops failed during the Dust Bowl, and the potentially 1.8 million people of Mexican heritage who were illegally gathered up and deported during “repatriation campaigns.”

But despite the fact that many Americans were struggling to get by, they nevertheless managed to have fun. Entertainment spots became popular as people often visited these places to escape from the harsh realities of daily living. For instance, watching movies offered an inexpensive kind of amusement that let people forget about their problems for a while. 

7. The Great Depression Had A Global Impact

Human misery was the Great Depression’s most severe effect. The output and living standards of the entire planet dramatically decreased over a brief period of time. In the early 1930s, up to one-fourth of the labor force in industrialized nations was unemployed. Although things started to get better by the middle of the 1930s, full recovery did not happen until the end of the decade.

The Depression in Europe resulted in massive unemployment, extreme poverty, and political unrest, with the emergence of radical political organizations in numerous nations. In Latin America there was a drop in commerce and an increase in protectionism, resulting in economic misery and political unrest. Asia also suffered the affects and saw a drop in exports and an increase in unemployment, which sparked social and political uprising. 

8. The Depression Led To The Rise Of Authoritarian Regimes 

The 1930s’ economic problems had a global reach and impact. In many places of the world, political instability was a result of economic instability. In consequence, political chaos paved the way for autocratic administrations to emerge, including those of Adolf Hitler in Germany and the Japanese military.

Many individuals had a sense of desperation and disappointment as a result of the Depression’s economic hardships, which made them more receptive to political leaders’ promises of easy answers to difficult issues.

A classic example is, the Nazi Party that gained power in Germany by taking advantage of the Depression’s economic and social unrest and promising to reestablish stability and prosperity. Similarly, the Benito Mussolini-led Fascist Party in Italy won support by pledging to revive the country’s economy and bring it back to its former glowry. 

9. The Depression Also Led To Significant Changes In American Politics

Politics and society in America underwent tremendous  transformation as a result of the Great Depression. One of the beneficiaries was Franklin D. Roosevelt who was elected president in 1932, under his pupular platform that was known  as the New Deal. It was designed to boost economic growth and help people suffering from the Depression. 

10. The Depression Also Had Some Positive Impact In Some Industries

While many industries were suffering as a result of the depression, not all was lost. Some actually count there blessings as this was the beginning of their thriving business. The entire cinema business underwent a transformation in the 1930s, and “Hollywood” came to represent major studio productions and the benchmark for movies all over the world. Because studios vertically consolidated the production process, movies could be made for less money, which reduced the cost of going to the movies. 

Incidentally, actors also became viewed as stars as movies attracted larger and more diverse audiences, heightening the buzz around the business.