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The Great Depression

The Great Depression was a severe worldwide economic downturn that began in 1929 in the United States and spread globally.

By Ethan Anderson| Reviewed by Olivia Bennett, Standards & Fact-Checking Lead| Updated July 27, 2026|2 min read| Fact-checked

The Great Depression was a severe worldwide economic downturn that began in 1929 in the United States and spread globally. It is widely regarded as the longest and most severe depression in modern industrial history, marked by mass unemployment, banking failures, deflation, and widespread poverty.

Causes

The Great Depression is commonly linked to the Wall Street Crash of 1929, but historians also emphasize deeper structural problems such as weak banks, falling demand, deflation, overproduction, and financial instability.

Economic and social effects

The downturn brought mass unemployment, business and bank failures, home and farm foreclosures, poverty, and homelessness in many countries.

Government responses

In the United States, Roosevelt’s administration responded with banking reforms, public works, farm supports, and social welfare programs through the New Deal.

Recovery

Recovery began at different times in different countries. Britannica notes that many affected countries were technically out of depression by 1933, while the United States is generally considered to have fully recovered by about 1939.

Key facts

  • The Great Depression began in the United States in 1929 and spread globally.
  • It caused steep declines in industrial production, prices, and international trade.
  • Mass unemployment and banking panics were defining features, with U.S. unemployment reaching about one in four workers.
  • Franklin D. Roosevelt’s New Deal introduced major federal relief, recovery, and reform programs.
  • Many historians date broad recovery to the late 1930s, though some note full U.S. recovery during World War II.
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Canadian context

The Great Depression affected Canada through falling trade, unemployment, and regional hardship, especially in prairie farming communities; it also influenced Canadian social policy and later welfare-state development.

Frequently asked questions

What was the Great Depression?
It was a severe global economic downturn that began in 1929 and affected much of the world through the 1930s.
When did the Great Depression start?
It began in 1929, commonly associated with the Wall Street Crash that year.
What caused the Great Depression?
The crash of 1929 was an important trigger, but broader causes included banking weaknesses, falling consumer spending, overproduction, deflation, and international financial instability.
How bad was unemployment during the Great Depression?
In the United States, unemployment reached about one in four workers at its peak.
How did governments respond?
The U.S. responded with New Deal programs, including banking reforms, relief measures, public works, and later Social Security and unemployment insurance.
When did it end?
Many countries began recovering by 1933, but sources differ on full recovery timing; Britannica gives about 1939 for the United States, while other sources link broader full recovery to World War II.

References

  1. Encyclopaedia Britannica — https://www.britannica.com/event/Great-Depression
    Supports: Global definition, dates, severity, major effects, and recovery timing.
  2. Federal Reserve History — https://www.federalreservehistory.org/essays/great-depression
    Supports: U.S. timeline, banking crises, and recovery during World War II.
  3. Franklin D. Roosevelt Presidential Library and Museum — https://www.fdrlibrary.org/great-depression-facts
    Supports: New Deal response, banking holiday, Social Security, unemployment insurance, and wartime employment recovery.
  4. Khan Academy — https://www.khanacademy.org/humanities/ap-us-history/period-7/apush-great-depression/a/the-great-depression
    Supports: Stock market crash, unemployment peak, and bank failures.
  5. Office of the Historian, U.S. Department of State — https://www.history.state.gov/milestones/1921-1936/great-depression
    Supports: Global event and foreign policy effects.
  6. Gilder Lehrman Institute of American History — https://www.gilderlehrman.org/history-resources/essays/great-depression
    Supports: Causes, unemployment, and historical interpretation of roots of the crisis.