Depression - GCSE History Definition

Depression, in the context of GCSE History, refers to a prolonged period of severe economic downturn, characterised by high unemployment, widespread poverty, and a significant decline in economic activity and production. The most notable example is the Great Depression of the 1930s, which had a devastating impact on countries around the world, particularly following the Wall Street Crash of 1929. During this time, many businesses failed, banks collapsed, and millions of people became jobless and homeless. Understanding the causes and consequences of depressions like the Great Depression is crucial for students, as it helps explain significant historical events and the responses of governments to economic crises.