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The most devastating impact of the Great Depression was human suffering. In a short period of time, world output and standards of living dropped precipitously. As much as one-fourth of the labour force in industrialized countries was unable to find work in the early 1930s. While conditions began to improve by the mid-1930s, total recovery was not accomplished until the end of the decade.

The depression affected politics by shaking confidence in unfettered capitalism. That type of laissez-faire economics is what president Herbert Hoover advocated, and it had failed