In the United States, the Great Depression began with the Wall Street crash of October 1929 and then spread worldwide. The nadir came in 1931β1933, and recovery came in 1940. The stock market crash marked the beginning of a decade of high unemployment, famine, poverty, low profits, deflation, plunging farm incomes, and lost opportunities for economic growth as well as for personal advancement. Altogether, this period represented a traumatic loss of confidence in the economic future.
The usual explanations include numerous factors, especially high consumer debt, ill-regulated markets that permitted overoptimistic loans by banks and investors, and the lack of high-growth new industries. These all interacted to create a downward economic spiral of reduced spending, falling confidence and lowered production.Industries that suffered the most included construction, shipping, mining, logging, and agriculture. Also hard hit was the manufacturing of durable goods like automobiles and appliances, whose purchase consumers could postpone. The economy hit bottom in the winter of 1932β1933; then came four years of growth until the recession of 1937β1938 brought back high levels of unemployment.