History The Great Depression Questions Medium
The Great Depression, which lasted from 1929 to 1939, was preceded by several economic indicators that signaled its onset. These indicators include:
1. Stock Market Crash: The most significant event that marked the beginning of the Great Depression was the stock market crash of October 29, 1929, also known as Black Tuesday. This crash led to a rapid decline in stock prices, causing investors to lose billions of dollars.
2. Bank Failures: As a result of the stock market crash, many banks faced financial difficulties. Panicked depositors rushed to withdraw their money, leading to a wave of bank failures. Between 1929 and 1933, over 9,000 banks closed their doors, wiping out the savings of millions of Americans.
3. Decline in Industrial Production: The Great Depression saw a significant decline in industrial production. As consumer demand decreased, factories and businesses were forced to reduce production and lay off workers. This led to a rise in unemployment rates and a decrease in overall economic activity.
4. Unemployment: The unemployment rate skyrocketed during the Great Depression. By 1933, approximately 15 million Americans, or about 25% of the workforce, were unemployed. This high level of unemployment further worsened the economic situation, as people had less money to spend, leading to a decrease in consumer demand.
5. Decline in International Trade: The global economy was also severely affected by the Great Depression. International trade declined sharply as countries implemented protectionist policies, such as imposing high tariffs on imports. This reduction in trade further deepened the economic crisis, as it limited markets for goods and exacerbated the decline in industrial production.
These economic indicators collectively signaled the onset of the Great Depression, which had far-reaching consequences on the global economy and led to significant social and political changes.