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A worldwide economic downturn, the Great Depression started in 1929, kicked off with the U.S. stock market crash, known as Black Tuesday, on October 29^th. It was the largest and most severe economic depression in the 20th century.

Effecting virtually every country and both the rich and poor, the depression had devastating outcomes in international trade, personal income, prices, and profits. People of all walks of life were hit hard, especially those dependent on heavy industry, construction, farming, and mining.

The causes of the Great Depression were many and varied, beginning with rapid economic growth and financial excess of the "Roaring Twenties.” Excess applied not only to spending, but also to a change of values with women smoking, drinking, and wearing short skirts.

During this time, many Americans were quickly buying automobiles, appliances, and speculating in the stock market. Unfortunately, much of this wild spending was done on credit and while businesses were making huge gains, the average workers’ wages were not increasing at anywhere near the same rate.

Migrant Mother, 1936 by Dorthea Lange.

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But, like other "booms” throughout history, the cycle soon led to a "bust.” As manufacturing output continued and farmers were over producing, circumstances began to change, leading to falling prices and rising debt. At the same time, there was a major banking crisis, including "Black Tuesday" as well as serious policy mistakes of the Federal Reserve Board, which led to a fall in money supply. Making matters worse for farmers, the "Dust Bowl Days" hit in the 1930's, caused by severe drought and decades of extensive farming without crop rotation.

Chaos in New York City on Black Tuesday.

Facing plummeting demand for products, bank failures, and global overinvestment, businesses began to lay-off employees in the thousands. However, optimism of some major politicians and businessmen remained. Early on, John D. Rockefeller, an American industrialist, said: "These are days when many are discouraged. In the 93 years of my life, depressions have come and gone. Prosperity has always returned and will again.” President Herbert Hoover, underestimating the seriousness of the crisis, called it "a passing incident in our national lives," and assured Americans that it would be over in 60 days. He was wrong.

The decline in the United States economy initiated a downturn in other countries before their own internal weaknesses or strengths determined if their fate was to be better or worse than that Americans were suffering.

The initial U.S. Government response to the crisis made the situation worse and resulted in American’s loss of confidence in the nation’s economic future. Protectionist policies like the 1930 Smoot-Hawley Tariff Act, which raised U.S. tariffs on over 20,000 imported goods to record levels, resulted in retaliation against U.S. Industries, strangling global trade. Industries that suffered the most included agriculture, mining, logging, durable goods, construction, and automobiles.