When was the Great Depression? Many people are asking this question, but do you know exactly when it happened? Well, here are some answers to your question. The Great Depression was a worldwide economic depression that occurred from 1929 to 1939. It all began with the collapse of stock prices in the United States. The initial decline was felt as early as September 4, 1929, and was internationally recognized on Black Tuesday, October 29, 1929. The next few years were plagued by increasing unemployment and financial problems.
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The United States economy declined by an estimated 10% in 1930, and the decline was caused primarily by a fall in consumer spending. In the early months, manufacturers had noticed a large rise in their inventories. This early decrease in output was the result of a strict US monetary policy, which restricted the stock market. The stock market was an obvious source of excess, but the Federal Reserve had already begun boosting interest rates in 1928.
A common cause of the Great Depression was a crash in the stock market. This stock market crash occurred when the country’s economy was flourishing and people were too comfortable with their lifestyles. During the period, most people had not saved for the worst, so they were living day-to-day. Many rushed to the bank to withdraw their savings, causing a disastrous ‘bank run’. This panicked customer behavior triggered the Great Depression, and Friedman argued that ‘the stock market crash’ was the cause of it.
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