The Great Depression was a severe worldwide economic depression that took place during the 1930s. Here are some key points about the Great Depression in the United States:
The Great Depression began with the Wall Street Crash of October 1929 and then spread worldwide.
The nadir came in 1931–1933, and recovery came in 1940.
The stock market crash marked the beginning of a decade of high unemployment, poverty, low profits, deflation, plunging farm incomes, and lost opportunities for economic growth as well as for personal advancement.
The usual explanations include numerous factors, especially high consumer debt, ill-regulated markets that permitted overoptimistic loans by banks and investors, and the lack of high-growth new industries.
Industries that suffered the most included construction, shipping, mining, logging, and agriculture.
Also hard hit was the manufacturing of durable goods like automobiles and appliances, whose purchase consumers could postpone.
The economy hit bottom in the winter of 1932–1933; then came four years of growth until the recession of 1937–1938 brought back high levels of unemployment.
The Depression caused major political changes in America.
Three years into the depression, President Herbert Hoover, widely blamed for not doing enough to combat the crisis, lost the election of 1932 to Franklin Delano Roosevelt by a landslide.
Roosevelt’s economic recovery plan, the New Deal, instituted unprecedented programs for relief, recovery and reform, and brought about a major realignment of politics.
This period of American history had a profound impact on the nation and continues to influence it today.