Is US heading for Great Depression far bigger than that of 1929? Here's what Trump says

Former US President Donald Trump thinks that the US is heading for another Great Depression. He has blamed the current President Joe Biden for the problems the US is facing. "With what is happening to our economy, and with the proposals being made on the largest and dumbest tax increase in the history of the USA Joe Biden will go down as the Herbert Hoover (US President in 1929-1933) of the modern age. We will have a great depression far bigger and more powerful than that of 1929. As proof, the banks are already starting to collapse!!!" he wrote on Truth Social, as per a report from TASS. 

Trump's comments come at a time when Silicon Valley Bank, which catered primarily to high-tech sector employees and venture capital-funded companies - some of which are the industry's most renowned brands - has been declared bankrupt by the California Department of Financial Protection. This announcement marks the largest bank failure in the United States since the 2008 financial crisis.

What was the Great Depression?

The Great Depression was a devastating period in American history that lasted from 1929 to 1939. It was marked by a severe economic downturn that affected the entire world and left millions of people unemployed, homeless, and struggling to survive. The stock market crash of 1929 is widely considered the trigger for the Great Depression. In just one day, stock prices fell dramatically, and investors lost billions of dollars. The resulting panic caused a chain reaction of bank failures, business closures, and layoffs that set the stage for the years of economic hardship that followed.

During the Great Depression, unemployment rates skyrocketed, reaching a peak of 25% in 1933. People who were lucky enough to keep their jobs often saw their wages cut or their hours reduced, making it difficult to support themselves and their families. As a result, many people were forced to turn to government assistance programs or charity organizations for help. The Great Depression had far-reaching social and political consequences as well. It sparked a wave of migration as people moved from rural areas to cities in search of work.

It also led to widespread poverty and a rise in crime as people struggled to survive. In addition, the Depression contributed to the rise of authoritarian governments around the world, including Nazi Germany and Fascist Italy. It wasn't until the start of World War II that the United States began to emerge from the Great Depression. The massive government spending required for the war effort created jobs and stimulated economic growth, laying the foundation for the post-war economic boom.