The Great Depression was a significant global financial crash that began in the United States in the 1930s and lasted until 1945. All around the globe, the Great Depression began in 1929 and continued till the 1930s; in many nations. It was the twentieth decade's worst, longest, and most extensive slump. The Great Depression is a well-known illustration of how rapidly the world economy may deteriorate.

After 1929, the standard financial notion that the administration should not meddle in the industry was questioned. As a result of businesses going down in droves, the 1929 financial crash led to depression, bankruptcies, and massive unemployment.

In 1936, John Maynard Keynes released 'General Theory,' a booklet in which he called for some government action to boost demand. A few of the major ways to accomplish that aim was to redistribute income from the rich to the underprivileged.

Keynesian solutions were used in the business after WWII since the 1929 collapse had damaged social liberalism. The economic system was supposed to cause uncertainty, and that the administration might stimulate economic growth.