The Great Depression was the widest-reaching economic crisis of the modern era. First, it started in 1929 in the United States of America. But, It took place all around the world for a decade. As a result, it led to World War II.
The Great Crash
The Wall Street market began to shake in September 1929. By October 18th, the stocks started to fall. Later, on October 24th, the panic hit. This day is called Black Thursday. Further, October 29th brought even more panic-selling, and the market crashed. Investors traded a record of 16 million shares. Likewise, we call this day Black Tuesday.
Hence, these two “black” days when people lost billions of dollars mark the beginning of The Great Depression. Soon, markets all around the world were affected. Only Japan was excluded.
Causes of The Great Depression
Of course, the leading cause was the crash of Wall Street. The event ended a decade of massive economic growth. The unemployment rates grew high. Conversely, production slowed down. Further, banking panics broke out. That means that people lost faith in the banks and wanted to withdraw their money. Also, we can mention political decisions among the causes.
The Outcome and Recovery
Collapses broke out all around the world. First, an important note is that the following events did not happen only due to The Great Depression. Growing poverty meant people lost faith in the system. All over the world, the working class had existential problems. Hence, Communism, Nazism, and Fascism arose in Europe. Soon, World War II broke out.
Franklin Roosevelt promised to combat the recession, at least in the USA. The tool was the New Deal. But, the situation only stabilized in 1941, when the war broke out. Hence, many experts mark the end of The Great Depression with this new horrific event. Unemployment in most countries decreased with mobilization.