I. IntroductionThe Great Depression was a severe economic depression that occurred in the decade before World War II. An economic depression is defined as a substantial and sustained deficit in the ability to purchase goods relative to the quantity that could be produced using current resources and technology.[1] The Great Depression affected most of the world's national economies throughout the 1930s. It mainly affected industrialized countries like the United States and the United Kingdom, and caused an increase in unemployment. In addition, the construction sector almost came to a halt, the price of agricultural products fell noticeably, and farmers and the rural population were hit hard. The mining sector was also worst hit due to an unexpected drop in demand. Economic historians generally consider the start of the depression to be the sudden collapse of U.S. stock markets on October 29, also known as Black Tuesday. And among the problems involved in assessing the causes of depression, none is more intractable than whether to blame the stock market crash. The rise in mass unemployment is seen as a consequence of the crash, but it is not the only event causing the depression. The Wall Street Crash is generally considered to have had the greatest impact on the events that followed, and as a result, it is widely recognized as indicative of the devastating economic circumstances that led to the Great Depression. True or not, the consequences were terrible for almost everyone. Most academic experts agree on one aspect of the crash: Billions of dollars of wealth disappeared in one day, immediately depressing consumption. Body - Causes and effects1. How it all started The global economy seemed to have recovered from the devastation caused by... middle of paper ...... certain issues such as social security. Until 1935, states – with the exception of Wisconsin – had insurance laws that were late, or worse, these programs were underfunded and therefore almost worthless. The United States became a country where people were trying to overcome depression, without any social security at the national level. Therefore, the most significant program of 1935 was undoubtedly the Social Security Act. It aimed to bring innovation to the country in terms of pensions and unemployment insurance. Roosevelt also insisted that it be financed by payroll taxes rather than the general fund; he said: “We placed these social security contributions there in order to give contributors a legal, moral and political right to receive their pensions and unemployment benefits. With these taxes in there, no damn politician can ever abandon my Social Security program..”