The Great Depression was a period of extreme economic hardship that began in the late 1920s and lasted throughout the 1930s. It started in the United States but quickly spread to other countries around the world.
During the 1920s, there was a lot of speculation in the stock market, which caused stock prices to rise rapidly. However, many of the people investing in the stock market did not have the financial means to support their investments, and when the stock market crashed in 1929, many people lost their life savings.
The crash of the stock market led to a decline in consumer spending, which in turn led to a decline in production and employment. As people lost their jobs, they had less money to spend, which caused businesses to struggle even more. This downward spiral led to a period of extreme poverty and hardship for many people.
To make matters worse, many banks failed during this time, which led to widespread panic and bank runs. People lost their savings when banks closed, and many businesses were forced to close as a result.
The Great Depression ultimately came to an end with the start of World War II, which brought about a large increase in government spending and a surge in economic activity. However, the Great Depression remains an important event in world history and a reminder of the importance of sound economic policies and financial regulation.