What event marked the start of the Great Depression?

The stock market crash of 1929 is widely regarded as the event that marked the start of the Great Depression. On October 29, 1929, known as Black Tuesday, the stock market experienced a catastrophic decline, leading to a loss of billions of dollars in stock value and creating a crisis of confidence in the American economy. This crash had immediate repercussions, resulting in bank failures, unemployment, and a significant contraction of consumer spending and business investment.

The significance of this event lies in its role as a catalyst for subsequent economic turmoil. Many businesses that relied on stock investment for growth found themselves in dire situations, prompting layoffs and increased unemployment. Furthermore, the crash eroded public confidence in financial systems and institutions, exacerbating the economic downturn that followed.

Understanding this event is crucial for analyzing the series of policy responses, societal shifts, and economic changes that defined the 1930s, including the implementation of the New Deal initiatives aimed at recovery and reform. Thus, the stock market crash of 1929 serves as the critical starting point of the Great Depression.