how did the great depression start

The Great Depression started primarily with the stock market crash of 1929 in the United States, often called the Wall Street Crash. This crash occurred after a period known as the "Roaring Twenties," characterized by speculative investment, loose bank lending, and growing wealth inequality. When stock prices peaked and started declining in late 1929, panic selling began, leading to dramatic market declines in October 1929 known as Black Thursday, Black Monday, and Black Tuesday. This event crushed investor confidence and wiped out billions of dollars in wealth. The crash was followed by a series of economic failures and worsening conditions globally. Bank failures increased as debtors defaulted and depositors withdrew money en masse, leading to massive reductions in the money supply. Overproduction and falling demand in agriculture and industry also contributed to bankruptcies and unemployment. Additionally, policies such as the Smoot-Hawley Tariff Act and adherence to the gold standard worsened trade and investment across countries. Thus, the Great Depression was triggered by the 1929 stock market crash but deepened due to banking crises, overproduction, declining demand, and adverse policy decisions worldwide, leading to a decade-long global economic downturn.