Explain how the Great Depression changed history.

The Great Depression had a dramatic effect on the United States and also the rest of the world. The democratic response to the Great Depression led by Franklin D. Roosevelt and his New Deal revolutionized the federal government. It created programs that aided those suffering from unemployment. Some programs created jobs preserving the environment or constructing bridges, parks, or dams. Other programs provided direct relief to farmers and the unemployed. All of the programs were funded by the federal government, which was a new development in American history. Americans started to view the federal government's role in a different way.

The stock market crash also had an impact on world trade. Countries like Germany and Japan that were already suffering with weak economies plunged even deeper into despair. These countries could no longer count on loans from the United States.  Inflation and unemployment hit those countries very hard. In response, the new democratic systems that were in place in Italy, Germany, and Japan were replaced by radical autocratic leadership. In many respects, the economic depression of the 1930's was a key reason for World War II.