Description y worldwide economic downturn preceded by crash of us stock market on oct. 29 1929, which resulted in massive bankruptcy claims and severe unemployment and impoverishment. y was severe, prolonged, and occurred on global scale. Important themes y collapse of the new york stock market. y transmission of the crash effects europe: impacted russia, china, japan as well. Incapacitating effect on incumbent democratic systems. y protectionist response of governments. y y the misery people went through. y attempted solutions. Practical implications y prices, value of stocks, income and demand collapsed worldwide: investment dried up, businesses collapsed or contracted, workers were laid off in massive amounts, incomes fell for thosewho were employed, unemployment. Us response: new deal y direct aid to americans at risks: eg. Food stamps, welfare etc. y ui was introduced. y works progress admin (1935) public works projects to create employment: eg.