“History Doesn’t Repeat Itself, but It Often Rhymes” – Mark Twain
The Great Depression was a severe worldwide economic depression that took place mostly during the 1930s, beginning in the United States. It was the longest, deepest, and most widespread depression of the 20th century. The stock market crash of 1929 led to the Great Depression and was a prelude to World War II.
The Great Depression started in the United States after a major fall in stock prices that began around September 4, 1929, and became worldwide news with the stock market crash of October 29, 1929, (known as Black Tuesday). Between 1929 and 1932, worldwide gross domestic product (GDP) fell by an estimated 15%. By comparison, worldwide GDP fell by less than 1% from 2008 to 2009 during the Great Recession.
The Great Depression had devastating effects on both rich and poor countries. Personal income, tax revenue, profits, and prices dropped, while international trade fell by more than 50%. Unemployment in the U.S. rose to 23% and in some countries rose as high as 33%.