Which major event began the economic crisis known as the Great Depression?

Which major event began the economic crisis known as the Great Depression?

• A. The Dust Bowl
• B. The stock market crash
• C. The outbreak of WWII
• D. The implementation of the New Deal

Answer: (B)

The Great Depression, a profound economic downturn that significantly impacted the United States and the world in the 1930s, was initiated by the stock market crash of October 1929. This event marked a drastic and rapid decline in stock prices, leading to widespread financial panic among investors and a loss of confidence in the economy. The crash triggered a chain reaction of bank failures, reduced consumer spending, and drastic cuts in production as businesses struggled to cope with the sudden economic instability. The aftermath of the crash led to severe unemployment, plummeting industrial output, and pervasive poverty as millions of Americans found themselves without jobs or savings. This crisis was not merely a financial event; it represented a fundamental shift in the economic landscape of the United States, pulling the nation into a prolonged period of hardship that lasted throughout the 1930s. Thus, the stock market crash is correctly identified as the pivotal moment that launched the Great Depression. Other potential events, such as the Dust Bowl, which worsened agricultural conditions in the 1930s, or the implementation of the New Deal aimed at recovery, occurred in response to the economic challenges rather than serving as the initial cause of the crisis. World War II eventually contributed to economic recovery, but it occurred

The Great Depression, a profound economic downturn that significantly impacted the United States and the world in the 1930s, was initiated by the stock market crash of October 1929. This event marked a drastic and rapid decline in stock prices, leading to widespread financial panic among investors and a loss of confidence in the economy. The crash triggered a chain reaction of bank failures, reduced consumer spending, and drastic cuts in production as businesses struggled to cope with the sudden economic instability.

The aftermath of the crash led to severe unemployment, plummeting industrial output, and pervasive poverty as millions of Americans found themselves without jobs or savings. This crisis was not merely a financial event; it represented a fundamental shift in the economic landscape of the United States, pulling the nation into a prolonged period of hardship that lasted throughout the 1930s. Thus, the stock market crash is correctly identified as the pivotal moment that launched the Great Depression.

Other potential events, such as the Dust Bowl, which worsened agricultural conditions in the 1930s, or the implementation of the New Deal aimed at recovery, occurred in response to the economic challenges rather than serving as the initial cause of the crisis. World War II eventually contributed to economic recovery, but it occurred