10 Lesser-Known Facts About the Great Depression
The Great Depression was one of the worst economic downturns in history, affecting millions of people across the world. It lasted from 1929 to 1939 and had a widespread impact on several sectors. In this article, we’ll look at ten lesser-known facts about the Great Depression that you might not be aware of.
1. A Mass Migration to California
During the Depression, many people migrated to California in search of better opportunities and to escape the economic crisis. The population of California increased by 40% during the 1930s, and many people found work in the agriculture and film industries.
2. The Hoover Dam was Built During the Depression
The construction of the Hoover Dam during the Depression was a massive public works project that provided employment to thousands of people. It was one of the most important infrastructure projects of the 20th century and provided electricity to several states.
3. The Stock Market Crashed Due to Overconfidence
The stock market crash of 1929 was triggered by overconfidence among investors who believed that the market would continue to grow indefinitely. However, with the continuous increase in stock prices, the market ended up becoming too expensive for most people, leading to a stock market crash that lasted for several years.
4. The Dust Bowl was a Direct Result of the Depression
The Great Depression led to severe droughts and soil erosion, which created the Dust Bowl phenomenon. It was a major ecological disaster that led to farmer bankruptcies and mass migration from the affected regions.
5. The Commodity Credit Corporation was Created to Stabilize Prices
To stabilize agricultural prices during the Depression, the US government created the Commodity Credit Corporation. It provided loans and subsidies to farmers to buy and store surplus crops, which helped prevent the prices from falling too low.
6. The US Federal Reserve Act was Passed During the Depression
The Federal Reserve Act, which created the US Federal Reserve System, was passed during the Depression in 1933. This helped stabilize the banking sector and put a stop to bank failures.
7. The New Deal was a Response to the Depression
President Franklin D. Roosevelt’s New Deal was a series of programs and policies created in response to the Depression. It aimed to create jobs, reduce unemployment, and promote economic growth by investing in infrastructure and creating social programs.
8. The Depression Led to the Abandonment of the Gold Standard
The Depression led to the abandonment of the gold standard, which meant that currency was no longer backed by gold reserves. This allowed governments to print more money and decrease the value of their currency to help boost the economy.
9. The Depression had a Long-Term Impact on Industrial Production
Although the Depression ended in the late 1930s, its impact on industrial production lasted much longer. It wasn’t until the 1940s, with the onset of World War II, that industrial production began to recover.
10. The Depression Had a Lasting Impact on Politics
The Great Depression had a lasting impact on politics, resulting in the emergence of new political movements and ideologies. It fueled the rise of socialism and communism, and also led to the development of the Keynesian economic theory, which advocated for government intervention in the economy during times of crisis.
Conclusion
The Great Depression was a historic event that had a profound impact on the world economy. From mass migration to policy changes, it brought about several significant changes that shaped the course of history. By understanding the lesser-known facts about the Depression, we can better appreciate its impact on society and the economy.
