why was the great depression important?

Answer 1

It gave rise to WWII. If the Great Depression never happened, Adolf Hitler never would have come to power. Germany was a stable democracy in the 1920s. Hitler got support by blaming communists and Jews for the country's economic situation. Obviously, this wasn't the case, but scapegoating worked to get popular support.

The Depression also gave rise to deficit financing, involving government practice of curbing the excesses of the economy, which was popular for a few decades. Deficit financing also gave rise to Social Security.

The Depression also gave economists a wealth a knowledge that wouldn't have been known otherwise. It showed that governments must play some role in controlling the economy, and that stock markets are subject to abuse. That knowledge gave rise to the Securities and Exchange Commission, which monitors and investigates suspicious stock transactions...such as the stuff Martha Stewart was trying to pull a few years back. :-P

Answer 2

It demonstrated our vulnerability to the laws of economics just as every other country. The 1920's was a period of rampant spending and excess. Eventually market was saturated and demand fell. When that happens then sources began to dry up. It starts a downward spiral of lay offs and business failures. Today we have some control over various business practices which probably help in curbing this kind of situation.

Answer 3

because it could have been avoided with some common, cheap, and simple solutions which the natioin did not know should have been used beginning in 1900.

Answer 4

It was bad and we dont eant to repeat history

Answer 5

it showed us that no matter how bad and hard times are that we can survive.