The Great Depression (1929-1939) was a severe economic crisis that arose from a combination of factors during the late 1920s and early 1930s. The Roaring Twenties brought rapid economic growth, technological advancements, and a booming stock market, but this prosperity masked deeper economic weaknesses. Income inequality left many Americans, particularly farmers and workers, with stagnant wages and limited purchasing power. Overproduction in both industry and agriculture led to falling prices, while the heavy use of credit created unsustainable debt.

Farmers, already struggling with low crop prices due to overproduction after World War I, faced worsening conditions during the Dust Bowl of the 1930s. Severe drought and poor farming practices caused massive soil erosion, leading to failed crops, livestock deaths, and mass migrations. Many farmers lost their land to foreclosures, contributing to widespread rural poverty.

Weak banking systems, limited regulation, and protectionist policies like the Smoot-Hawley Tariff further destabilized the economy. The Stock Market Crash of 1929 exposed these vulnerabilities, triggering a chain reaction of bank failures, unemployment, and economic collapse. The crisis was eventually addressed through New Deal programs, which aimed to stabilize industries, support farmers, and restore confidence in the economy.

The Great Depression was a severe worldwide economic crisis, marked in the U.S. by the stock market crash on "Black Thursday," October 24, 1929. There were many causes of the Great Depression, but its effects were felt across the nation. By the time Franklin D. Roosevelt became president on March 4, 1933, the banking system had collapsed, unemployment had risen to nearly 25%, and prices and production had dropped to one-third of what they were in 1929. Lower prices and less production led to reduced wages, rents, dividends, and profits. Factories closed, farms and homes were lost to foreclosure, mills and mines were abandoned, and many people went hungry. With less money, people couldn’t spend or save enough to fix the economy, creating a cycle that made the crisis even worse. During this period, two presidents served: Herbert Hoover (1929–1933) and Franklin D. Roosevelt (1933–1945), each leaving behind distinct legacies in their responses to the Great Depression.