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The '''Great Depression''' was a severe, worldwide economic downturn which lasted from 1929 until around the beginning of [[World War II]] in the early 1940s.

The '''Great Depression''' was a severe, worldwide economic downturn which lasted from 1929 until around the beginning of [[World War II]] in the early 1940s.

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{{Friedman-roosevelt-depression}}

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In the United States (and in most other countries), the Depression had a number of very grave symptoms:

In the United States (and in most other countries), the Depression had a number of very grave symptoms:

* GDP fell drastically, with declines of 30-50% in most countries.  

* GDP fell drastically, with declines of 30-50% in most countries.  

* Prices for commodities like crops, petroleum, raw materials and coal fell very sharply. This was '''deflation''' and it made the burden of debt higher and sabotaged long-term planning.

* Prices for commodities like crops, petroleum, raw materials and coal fell very sharply. This was '''deflation''' and it made the burden of debt higher and sabotaged long-term planning.

* Unemployment soared, with the highest rates in heavy manufacturing.  It reached 20-30% in major countries.

* Unemployment soared, with the highest rates in heavy manufacturing.  It reached 20-30% in major countries.<ref> "...government efforts -- first under Hoover and then under FDR -- to prop up wages despite falling prices led to a full decade of double-digit unemployment" [http://www.conservativebookclub.com/products/BookPage.asp?prod_cd=c7348 The Politically Incorrect Guide to the Great Depression and the New Deal]

* Wage rates did NOT fall sharply, but hours per week of full-time workers fell. Workers were very reluctant to quit their jobs to look for a better one.

* Wage rates did NOT fall sharply, but hours per week of full-time workers fell. Workers were very reluctant to quit their jobs to look for a better one.

* Older workers without jobs were rarely hired; if they had jobs they delayed retirement.  

* Older workers without jobs were rarely hired; if they had jobs they delayed retirement.