What event significantly contributed to the start of the Great Depression?

The Stock Market Crash of 1929 played a pivotal role in triggering the Great Depression. This event marked a dramatic fall in stock prices in the United States and was characterized by panic selling. On October 29, 1929, known as Black Tuesday, the stock market plummeted, which resulted in massive financial losses for investors and eroded public confidence in the economy. The crash led many banks and businesses to fail, causing widespread unemployment and a significant contraction in consumer spending.

Following the crash, the economy faced severe deflation, and the resultant economic downturn, compounded by the lack of government intervention and regulatory frameworks, spiraled into the longest and most severe economic depression in modern history. This event is often viewed as the catalyst that unveiled deeper structural weaknesses within the U.S. economy, setting off a chain of failures that resulted in the Great Depression. Understanding the role of the Stock Market Crash of 1929 is essential when examining the broader economic, social, and political impacts of the Great Depression era.