The Interwar Years: Economic Crisis and Dictatorships (1920s-1930s)
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The Great Depression: Causes and Impact
The period generally referenced as the Great Depression spanned from the stock market crash of 1929, following a decade of economic instability, until the late 1930s. The problems that led to this severe crisis include:
- Overproduction: American industry produced more goods than the population could purchase, leading to factory closures and economic stagnation.
- Falling Consumption: As companies closed down, people lost their jobs, reducing spending and overall demand for goods.
- The Wall Street Crash: Many companies whose shares were sold on the stock market began to fail and crashed in 1929. This triggered a series of protests against the government and the capitalist system that had produced the crisis.