USCIS 128:103. What was the Great Depression?

OpenAI. (2026). What was the Great Depression?   [AI-generated infographic]. OpenAI.  Edited by Jennifer Gagliardi

The Great Depression was the longest and most severe economic recession in modern history. It began in 1929 after the stock market crashed and continued through most of the 1930s.

Before the Great Depression, many Americans believed the economy was strong and growing. People bought stocks, opened businesses, and spent money freely. However, many banks and businesses were weak, and the economy was not as stable as it seemed.

In October 1929, the stock market crashed. This event is often called the Stock Market Crash of 1929 or Black Tuesday. After the crash, many people lost their savings and investments.

As the economy became worse, banks closed and businesses failed. Millions of workers lost their jobs. Many families could not pay for food, housing, or clothing. Some people lost their homes and had to live in temporary communities called “Hoovervilles.”

Farmers also suffered during the Great Depression. In parts of the Great Plains, severe drought and dust storms created the Dust Bowl. Many farming families lost their land and moved to other states looking for work.

President Franklin D. Roosevelt became president in 1933. He introduced programs called the New Deal to help the economy recover. These programs created jobs, helped banks, and provided support for workers and families.

The Great Depression slowly improved during the late 1930s, and the economy grew more quickly during World War II.

The Great Depression is important in American history because it affected millions of people and changed the role of the federal government in helping the economy and supporting citizens during difficult times.