The Great Depression was a severe worldwide economic recession that started in 1930.
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Video Transcription
In this lesson, we’re going to explore the Great Depression, a severe economic downturn from 1929 to the late 1930s, and the New Deal, a series of programs and reforms introduced to combat its effects.
The Great Depression began with the stock market crash of October 1929, known as Black Tuesday. This crash triggered a chain reaction of financial failures: banks collapsed, businesses went bankrupt, and unemployment soared. By 1933, about a quarter of the American workforce was unemployed.
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People lost their homes, farms, and savings, and breadlines and soup kitchens became common.
In 1933, Franklin D. Roosevelt became President and introduced the New Deal, a series of programs and reforms to provide relief, recovery, and reform.
The New Deal aimed to address the immediate needs of the unemployed and poor, stimulate economic recovery, and prevent future depressions.
One major initiative was the Civilian Conservation Corps (CCC), which provided jobs for young men on environmental conservation projects like building parks and planting trees.
Another significant program was the Works Progress Administration (WPA), which created millions of jobs through public works projects such as building roads and schools, improving the nation’s infrastructure.
The Social Security Act established a system of old-age pensions, unemployment insurance, and aid to families with dependent children, creating a safety net for the elderly and unemployed.
To restore public confidence in the banking system, the New Deal created the Federal Deposit Insurance Corporation (FDIC), which insured bank deposits, stabilizing the banking system and reassuring the public.
While the New Deal alleviated some of the worst effects of the Depression, it was not until World War II that the U.S. economy fully recovered.
The war effort created millions of jobs and boosted industrial production, ultimately ending the Great Depression.
In summary, the Great Depression was a period of severe economic hardship that led to widespread suffering.
The New Deal was a bold response that provided relief and reform, laying the groundwork for future government intervention in the economy.
Last Updated on January 7, 2026.