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The Great Depression faced three major setbacks: widespread unemployment, which peaked at around 25%, leading to severe financial hardship for millions; a collapse in the banking system, resulting in the loss of savings and further contraction of credit; and a dramatic decline in global trade, exacerbated by protectionist policies like the Smoot-Hawley Tariff, which deepened economic stagnation worldwide. These factors combined to prolong the economic crisis and hinder recovery efforts throughout the 1930s.

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