List the short term and long-term effects of the great depression? List them

Answer 1

Short-term effects of the Great Depression:

1. Massive unemployment: The stock market crash in 1929 led to widespread job loss, with over 15 million Americans unemployed by 1933.
2. Bank failures: Over 9,000 banks closed their doors during the Great Depression, wiping out savings and sparking a collapse of the financial system.
3. Decreased industrial production: Industrial output plummeted, as factories and businesses faced reduced demand and financial difficulties.
4. Poverty and homelessness: Many Americans fell into poverty, unable to afford basic necessities like food and shelter. Homelessness became a significant issue.
5. Global economic downturn: The effects of the Great Depression were not limited to the United States, as economies worldwide suffered as a result of the global economic crisis.

Long-term effects of the Great Depression:

1. New Deal reforms: President Franklin D. Roosevelt implemented a series of economic and social programs known as the New Deal, aimed at providing relief, recovery, and reform to stabilize the economy and help the American people. This led to the creation of Social Security and other lasting social safety net measures.
2. Expanded government intervention in the economy: The Great Depression demonstrated the need for increased government regulation and intervention in the economy to prevent future crises, leading to the rise of Keynesian economics and a larger role for the federal government.
3. Change in financial policies: The depression resulted in the establishment of the Federal Deposit Insurance Corporation (FDIC), which insured bank deposits and helped restore public confidence in the banking system.
4. Migration and demographic shifts: The economic hardships of the Great Depression caused significant migration patterns, with people moving from rural areas to cities in search of work. This led to cultural and demographic shifts in urban areas.
5. Rise of extremist ideologies: The Great Depression created fertile ground for the rise of extremist ideologies like fascism and communism, as people looked for alternative solutions to the economic crisis.

The impact of the Great Depression was far-reaching and had both immediate and long-lasting consequences on individuals, nations, and the global economy.