The Great Depression started in the United States causing an enormous reduction in the worldwide gross domestic product, which fell in the period from 1929 to 1932 by fifteen percent. The Great Depression began with the stock market crash of 1929, which sent Wall Street into a frenzied panic and wiped out the savings and investments of millions of investors. The economy began shrinking in August 1929. Introduction. African Americans - African Americans - African American life during the Great Depression and the New Deal: The Great Depression of the 1930s worsened the already bleak economic situation of African Americans. The depression was caused by the stock market crash of 1929 and the Fed’s reluctance to increase the money supply GDP during the Great Depression fell by half, limiting economic movement. The Great Depression (1929-1939) was the worst economic downturn in modern history. The impact was widespread and the most severe depression ever experienced in the western world, causing high levels of unemployment for years … Blamed for the Depression, the Republicans lost control of both Congress and the White House for almost two … The Great Depression was a worldwide economic depression that lasted 10 years. They were the first to be laid off from their jobs, and they suffered from an unemployment rate two to three … The last time Republicans controlled the presidency and Congress was in 1928, and the U.S. sunk into the Great Depression within a year. Perfect prep for The Great Depression (1920–1940) quizzes and tests you might have in school. In 1929, economic output was $105 billion, as measured by gross domestic product. After October 29, 1929, stock prices had nowhere to go but up, so there was considerable recovery during succeeding weeks. The problems of agriculture were made worse by several years of drought that turned a good part of the Great Plains into a dust bowl and triggered an internal migration of destitute farmers to California.  Although it was released during the first year of the Great Depression, the 1930 film High Society Blues captured the speculative hope and prosperity of the previous decade. By the end of the year, 650 banks had failed. National Archives, Washington, D.C. (12573155) The Great Depression of the late 1920s and ’30s remains the longest and most severe economic downturn in modern history. As people became increasingly anxious about the security of their money, they withdrew their funds in cash, leading to bank … The wonder of the stock market permeated popular culture in the 1920s. I. Effects of the 1929 Stock Market Crash: The Great Depression.   That's equivalent to more than $1 trillion today. During the first five years of the depression, the economy shrank 50%. Lasting almost 10 years (from late 1929 until about 1939) and affecting nearly every country in the world, it was marked by steep declines in industrial … “I’m in the Market for You,” a popular musical number from the … Test your knowledge on all of The Great Depression (1920–1940).