What economic panic occurred in 1893 and what did it lead to?

The Panic of 1893 was a significant economic crisis that marked a severe downturn in the United States economy. It was triggered primarily by the collapse of the Philadelphia and Reading Railroad, which led to a loss of confidence in the financial system. As a result, it caused a ripple effect throughout the economy, leading to widespread bank failures and the closure of businesses.

The fallout from this panic was extensive, resulting in high unemployment rates and severe economic hardship for many Americans. In addition to the immediate financial crises, it involved a long-lasting impact on the economy, leading to a period of stagnation known as the Long Depression, which exacerbated social and political issues, including labor unrest and demands for reforms.

This context supports why the option stating that the Panic of 1893 led to widespread unemployment and economic hardship is accurate. The economic struggles during this time would ultimately shape policy and sentiment towards the government's role in stabilizing the economy going forward.