What economic event does the term 'Great Depression' refer to?

The term 'Great Depression' refers to the prolonged global economic downturn that began in the late 1920s and lasted through much of the 1930s. This period is characterized by massive unemployment, significant declines in consumer spending, and a dramatic decrease in industrial production and international trade. The Great Depression started with the stock market crash of 1929, which sent shockwaves through economies worldwide.

During this time, many banks failed, businesses closed, and a significant portion of the workforce found themselves without jobs, leading to widespread poverty and hardship. The effects of the Great Depression were felt across various sectors and led to major changes in economic policies, including government interventions in the economy and the development of social safety nets. Understanding this event is crucial for grasping the economic landscape of the United States and the world in the 20th century, as it set the stage for many of the reforms and policies that followed.