What was The Great Depression?

The Great Depression is known as one of the worst economic downturns in history. It took place between 1929 and 1941, only ending during World War II – more than a decade later. This event was characterized as one of the worst economic crises in history because of its longevity, impact, and consequences. What Caused The Great Depression? There were multiple causes of the Great Depression that came together to create the perfect storm. Some include the stock market crash of 1929, unfavorable government policies, the Smoot-Hawley Tariff, which led to the collapse of world trade, and bank failures. External factors such as the economic downturn in Europe were also culprits. Below is further detail about three of these causes. Stock Market Speculation: The economic boom of the 1920s also known as the ‘Roaring Twenties’ led to risky gambling on Wall Street. This comprised investors using their savings to buy stock, high levels of margin trading, rapid expansion in the stock market, and the formation of a bubble. As a result, companies became overvalued. In 1929, that bubble burst, leading to the stock market crash.