✅ El CRACK DEL 29 y la GRAN DEPRESIÓN en 8 minutos | Todo lo que tienes que saber sobre la crisis

Following World War I, the United States experienced an economic boom known as the "Roaring Twenties." Soldiers returned to work, unemployment was low, and women began entering the workforce, leading to increased consumer spending. Mass-produced cars and home appliances like washing machines became popular. Banks readily offered credit, fueling further consumption and industrial growth, creating a cycle of prosperity.

With extra savings, people began investing, particularly in the stock market. As companies prospered, the stock market entered a period of euphoria with incredible returns. This encouraged more people to invest, leading to a demand for stocks that continuously drove prices up. Many even borrowed money from banks to invest in the market, with banks prioritizing these loans over commercial ones, and even investing their clients' money.

Problems arose as the U.S. economy's growth rate lagged behind market speculation. Companies couldn't justify their inflated valuations with actual sales. Economic slowdowns were evident in sectors like agriculture, where overproduction after WWI led to falling prices. Despite these warning signs, people continued to speculate in the stock market, ignoring the growing disconnect between market prices and economic reality.

The crisis erupted on "Black Thursday," October 24, 1929, when widespread panic selling caused stock prices to plummet. This triggered a wave of small investors selling their shares, leading to further price drops as demand to buy disappeared. The market fell 12% that day, followed by another 12% on "Black Tuesday" the following week. In just one week, the U.S. stock market lost more than what the country spent in World War I.

This crash led to widespread company bankruptcies, loss of life savings for many citizens, and financial ruin for those unable to repay debts. The Dow Jones Industrial Average dropped by 90% over three years. Unemployment soared to 24.9%, leading to mass loan defaults and bank failures. Surviving banks became cautious, halting credit and further stifling consumption and investment, plunging the economy into a deep recession. The U.S. saw widespread poverty, suicides, and food lines.

The crisis quickly spread globally due to the interconnectedness of economies. As the U.S. bought fewer foreign goods, other countries faced economic crises. Germany, reliant on U.S. loans to pay WWI reparations to France and the UK, defaulted when American banks failed. This caused economic hardship in France and the UK, who also stopped buying goods from other nations. This global economic downturn led to political instability, especially in Germany, where the dire conditions created fertile ground for the rise of Nazism.

In the U.S., recovery began in 1932 with President Franklin D. Roosevelt's "New Deal." This policy involved public investment programs, government-backed credit, new legislation, and ambitious income redistribution. While the New Deal helped, full economic recovery and a return to pre-crisis unemployment levels were only achieved with the onset of World War II in 1938.