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The collapse of the US Stock Market.

Actually the cause of the Great Depression was the uncontrolled inflation, rising unemployment, and resulting depression in Germany caused by the enormous war reparations demanded by the Treaty of Versailles. The depression in Germany spread across the countries in Europe first through the 1920s, then finally hit the US too in 1929.

Unfortunately many people in the US seem to think (yes, I've lived in the US all my life) that all the world pivots about events here. Our history books in school teach that and we are generally very naive about how events in the rest of the world affect us.

The collapse of the US stock market and rapidly falling prices for farm crops were just the first two things in the US economy that felt the oncoming wave of worldwide depression begun in Germany a decade earlier. Then the bank collapses, then massive unemployment. at which point the US finally named it the Great Depression.

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9y ago
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15y ago

Alexander Hamilton! If you know your history he was a strong proponent of the central bank and centralized monetary policy. His idea was to have the banks of our nation come to the US central bank and borrow money. The more the govenrment trys to control our economy the longer and deeper these recessions and depressions will go on. We cannot keep printing money that is not there!

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11y ago

the weak dollar and window dressing of accounts of american firms

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13y ago

I believe once the housing market crashed, that's when the rest the country started to fall. When the housing market is strong, the economy is strong.

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8y ago

the lending bubble -- bad mortgages

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Q: What was the main cause of the recession?
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