The event often cited as the start of the Great Depression is the stock market crash of 1929. This financial catastrophe significantly undermined consumer confidence and triggered a severe economic contraction in the United States and across the world. The ensuing economic fallout included rampant unemployment, bank closures, and deflation. Governments struggled to respond effectively, leading to widespread poverty and hardship during the 1930s. The Great Depression prompted significant changes in economic policy and public welfare, influencing the role of government in the economy for decades to come.