What were the major economic causes of the Great Depression?

The Great Depression was a severe economic downturn that began in the United States in 1929 and spread globally, lasting until the late 1930s. Several key economic factors contributed to this devastating event:

Stock Market Crash

The 1929 stock market crash, also known as Black Tuesday, was a significant trigger of the Great Depression. It led to a sharp decline in consumer spending and investment, contributing to a downward economic spiral.

Banking Crisis

The collapse of numerous banks during the Great Depression resulted in the loss of savings for millions of individuals and businesses, leading to further economic instability.

Unemployment

Rising unemployment rates during the Great Depression severely impacted consumer spending, exacerbating the economic downturn.

Global Trade

A decline in international trade worsened the economic situation, as countries implemented protectionist policies, leading to a decrease in global economic activity.

Overproduction

Excessive manufacturing and agricultural overproduction led to a surplus of goods and deflation, further weakening the economy.

Government Policies

Inadequate government intervention and response to the economic crisis worsened the situation, prolonging the effects of the Great Depression.

Overall, a combination of factors such as the stock market crash, banking crisis, unemployment, global trade, government policies, overproduction, and deflation contributed to the severity of the Great Depression, making it one of the most significant economic crises in history.