What event started the Great Depression?

The Stock Market Crash of 1929 is widely recognized as the primary event that initiated the Great Depression. This devastating economic downturn was precipitated by a dramatic collapse in stock prices, leading to a loss of confidence among investors and significant financial strain on banks and consumers. As people rushed to sell their stocks, the market plummeted, resulting in widespread financial ruin.

The aftermath of the crash triggered a chain reaction that severely impacted the banking system, employment rates, and economic stability across the United States and eventually throughout the world. Businesses failed, jobs were lost, and the overall economy faced unprecedented challenges.

In contrast, while global conflicts such as wars can have significant economic impacts, the specific cause of the Great Depression is most directly linked to the stock market's collapse. The signing of the Treaty of Versailles, while a key historical event, occurred in 1919 and set the stage for various geopolitical tensions rather than an economic crisis. The election of Franklin D. Roosevelt occurred later, during the early years of the Great Depression, and was part of the efforts to address and alleviate the economic troubles rather than the cause of them.