What were the short-long-term effects of the great crash?

Answer 1

The Great Crash of 1929 led to immediate short-term effects, including a massive loss of wealth, widespread bank failures, and a sharp decline in consumer spending, which contributed to the onset of the Great Depression. In the long term, it resulted in significant regulatory changes, such as the establishment of the Securities and Exchange Commission (SEC) and the implementation of the Glass-Steagall Act to restore public confidence in the financial system. Additionally, it reshaped economic policies and practices, fostering a more interventionist government role in the economy. The social impact included increased unemployment rates and lasting changes in public attitudes towards economic security and government responsibility.