The Great Depression: Slow Recovery & Policy Mistakes

Abstract

The Great Crash of the United States stock market that took place on October 29, 1929 marked the beginning of the ever longest recession that the US economy endured during the subsequent decade. The US economy experienced a drastic fall in the US real output and soaring rates of unemployment that led policymakers to initiate a multitude of policy measures to overcome this depression and to start the economic recovery, yet this recovery was a very slow and disrupted process that marked the entire decade as the Great Depression. This paper attempts to highlight these policy measures that led to this slow recovery though were intended to speed up the recovery and to retain the prewar rates of economic growth.

Keywords

• The Great Depression
• Economy
• Recovery
• Policy