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Events Leading to The Great Depression

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  • Pre -1929 Events

    Pre -1929 Events
    1920s: The Roaring Twenties - A period of economic prosperity and cultural change in the U.S. characterized by rapid industrial growth, technological advancements, and an increase in consumerism. 1927: The Federal Reserve begins to raise interest rates to curb speculation in the stock market.

  • Black Thursday

    Black Thursday
    Stock prices begin to fall sharply. Investors start to panic-sell their stocks.

  • Black Tuesday

    Black Tuesday
    The stock market crash accelerates, with the Dow Jones Industrial Average falling dramatically. This day is often marked as the beginning of the Great

  • The Smoot-Hawley Tariff Act

    The Smoot-Hawley Tariff Act
    The Smoot-Hawley Tariff Act is passed, raising tariffs on imported goods. This leads to retaliatory tariffs by other countries and a decline in international trade.

  • U.S. GNP drops significantly

    U.S. GNP drops significantly
    The U.S. Gross National Product (GNP) drops significantly, reflecting the broader economic downturn.

  • Global Financial Crisis

    Global Financial Crisis
    1931: Several major banks in Europe fail, worsening the global financial crisis.

  • UK Abandons Gold Standard

    UK Abandons Gold Standard
    September 1931: The United Kingdom abandons the gold standard, leading to a devaluation of the British pound and further global economic instability.

  • Unemployment reaches its peak in the U.S.

    Unemployment reaches its peak in the U.S.
    1932: Unemployment in the U.S. reaches its peak, with around 25% of the workforce unemployed. The economic hardship becomes widespread.

  • Franklin D. Roosevelt inaugurated as President

    Franklin D. Roosevelt inaugurated as President
    March 4, 1933: Franklin D. Roosevelt is inaugurated as President of the United States and begins implementing the New Deal, a series of programs and reforms aimed at economic recovery.

  • Roosevelt Declares Bank Holiday

    Roosevelt Declares Bank Holiday
    Roosevelt declares a "bank holiday" to close all banks temporarily and stabilize the banking system.

  • The Security Exchange Act Passed

    The Security Exchange Act Passed
    The Securities Exchange Act is passed to regulate the stock market and prevent fraudulent practices.

  • The Social Security Act

    The Social Security Act
    The Social Security Act is signed into law, providing support for retirees and the unemployed.

  • Recession 1937-1938

    Recession 1937-1938
    A recession within the Great Depression, often referred to as the "Roosevelt Recession," occurs, partially due to reduced government spending and a tighter monetary policy.

  • Attack on Pearl Harbor

    Attack on Pearl Harbor
    The attack on Pearl Harbor leads the U.S. to enter World War II, which helps to end the Great Depression through wartime economic mobilization.