In 1929 the stock market crashed and everybody lost their jobs. Which sent wall street into panic and wiped out millions of investors. Over the next several years, consumer spending and investment dropped causing steep declines in industrial output and rising levels of unemployment as failing companies laid of workers.
The Great Depression
By 1933 when the great depression reached its nadir, some to 13 to 15 million Americans were unemployed and nearly half of the country's banks had failed. Though the relief and reform measures put into place by president Franklin D. helped lessen the worst effects of the great depression in the 1930's the economy would not fully turn around until after 1939, when world war two kicked american industry into high gear.