USCIS 128:104. When did the Great Depression start?

OpenAI. (2026). When did the Great Depression start?   [AI-generated infographic]. OpenAI.  Edited by Jennifer Gagliardi

The Great Depression began in 1929 with the stock market crash of 1929, also called the Great Crash. It became the longest and worst economic recession in modern history.

During the 1920s, many Americans believed the economy was very strong. This time was sometimes called the “Roaring Twenties.” Businesses grew, factories made more products, and many people bought new cars, radios, and household items.

At the same time, many Americans invested money in the stock market. Stocks are small shares in companies. People hoped stock prices would keep rising and make them rich. Some people even borrowed money to buy stocks, which made the situation more dangerous.

However, the economy had serious problems. Many workers earned low wages, farmers had large debts, and some businesses made more products than people could buy. Banks and investors also made risky financial decisions.

In October 1929, the stock market suddenly collapsed. Stock prices fell very quickly, and many investors rushed to sell their stocks. Panic spread across the country.

One of the worst days was October 29, 1929, called Black Tuesday. On that day, millions of shares were sold, and stock prices crashed. Many people lost their savings in only a few hours.

After the crash, many banks failed because they lost money or because too many people tried to take out their savings at the same time. Thousands of banks closed during the early years of the Great Depression.

As banks and businesses failed, millions of Americans lost their jobs. Unemployment became very high. Many families could not afford food, clothing, or housing. Some people lost their homes and lived in small communities called “Hoovervilles,” named after President Herbert Hoover.

Farmers also suffered during the 1930s. Severe drought and dust storms damaged farmland in the Great Plains region. This disaster became known as the Dust Bowl. Many farming families moved west to look for work.

In 1933, President Franklin D. Roosevelt became president. He introduced programs called the New Deal to help the country recover. These programs created jobs, helped banks, and gave support to workers, farmers, and families.

The economy slowly improved during the late 1930s. It grew faster during World War II, when factories produced military equipment and millions of people found jobs again.

The Great Depression is important in American history because it changed the role of the federal government. New laws and programs were created to help people during economic crises.